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DVD rental vending


Tiffeney
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  I was just wondering if anyone knows any info on the DVD vending machines that seem to be popping up at the supermarkets?  I think the name of the machines are red box and they only take credit or bank cards !  There was a line the other day to at one to rent the movies !  It looks like it does well it just seems as if most of the markets around here already have them and I an to late.

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Tiffeney,

I have heard of these and even read some about them in trade magazines however I have not seen any in my area. Your post has made me a bit more interested in the prospect given that there are none in my area. I was a little reluctant to learn more about this due to companies like Netflix. I could be wrong but it just seems to me that the movie rental biz (both dvd and video) is dying in my area. I'm sure it's different in other areas of the country. There are just too many other ways to get/view movies today with instant downloads and pay-per-view.

If you are seeing these kiosks doing well them maybe it merits a second look!

Steve 

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 All the dvd stores are dying out here to because of Netflix I am a member of netflix too but for just $1 for each video is not bad a recently put my account on hold at nexflix ,because money got tight !  And the other day I was about to put my atm card in it but there where like 2 people alraedy waiting to have thier turn.  Even when I was a member I only had a three dvd limit and never could get them fast enough and thought about renting one at the local super market for its convience.

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Does anyone have any idea what the movies cost? If you look at what they sell for in the video store it seems to me the cost of the product would be high in comparison to the rate of return. (ie gumballs cost 2 cents and sell for 25. movies cost $20.00 and rent for $1.00) I understand you can re-rent the movie but I wonder what the window of opportunity is. Can you get the movies at the same time as the video store does or do you get them afterwards? How many of each movie would you buy for your machine? How do you get rid of the older ones and how long will a standard  movie be a desirable rental?

If anyone is serious about looking into movie rentals it would be interesting to find out how the distribution works and what costs are involved. I, like Steve, wonder if we aren't be too late with this idea. With all the download movie sites available I'm not sure how this would work.

If you do want to do it, try resort and timeshare areas where lots of people may not have their own computers for downloads. Small hotels and motels might work.

Ted

 

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That could work too. You would want a little, in room unit, like the bar fridge. Under lock and key so the kids can't get at them but so the patrons don't have to stand in front of the machine in the lobby.

 

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Here is an article about this from this months issue of Automatic Merchandiser. This article is Copyright 2007 Cygnus Business Media.

Steve

redbox Makes Waves, with Lessons for Full Line Vending

For the last few years, Automatic Merchandiser and VendingMarketWatch.com have reported the emergence of self service kiosks, a separate but related industry, and attempted to determine this industry’s relevance, if any, to full line vending.

The key observation has been that self serve kiosks will bring new conveniences to consumers and, by utilizing some of the same technologies used in vending, enhance vending’s overall reputation.

The technologies that will be common to both self service kiosks and vending machines include remote machine monitoring, electronic security, Internet-fed audio-visual content, cashless payment, and computerized touch screens.

Kiosks: new and evolving

The self serve kiosk industry is fairly new and growing rapidly. The majority of kiosk deployers are large retailers, along with travel and hospitality locations. The technology in these systems is complicated and rapidly evolving.

Last month, Selfserviceworld magazine named the redbox DVD kiosk as the “hottest†self service application to date, based on a reader survey.

The magazine selected 55 deployments and determined the 10 most popular kiosks, based on Internet presence and media mentions. The magazine then asked its readers to rank these 10 kiosks to determine the “hottest†one. Close to 600 readers voted. The voting was carefully policed to prevent manipulation.

redbox, a DVD rental kiosk that evolved as a result of McDonald’s experiments with on-site vending, was the clear winner, receiving more than 50 percent of all the votes.

VendingMarketWatch.com has also recognized redbox’s success, growing to 42,000 locations in a 5-year period.

Lessons for full line vending

There are several lessons for the full line vending industry in redbox’s success.

redbox is not the only DVD rental kiosk introduced to the market in recent years. What set this kiosk apart from the pack are the following:

  • The support of a committed organization.
  • Careful attention to the placement of kiosks. As with vending, location is critical.
  • A seamless operating plan. The machines are stocked with the latest DVD releases, based on hard data.
  • A serious marketing plan.
  • High consumer value.
These factors are obviously interdependent. The last point, high consumer value, is the combined result of all the factors, and the most important factor of all.

High consumer value

Consumers can go to the Internet to find out which redbox kiosk has the title they want. For a $1 rental, they can get the DVD and return it at their convenience retailing. But the opportunity needs an organization that understands its consumer value and can support its delivery. This is what set redbox apart in a crowded field of competitors.

The lessons for full line vending are clear.

 

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These machines are great. We moved to Phoenix from Houston oer a year ago. When we lived in houston they pooped up at a bunch of McDonalds. We loved using them to rent DVD's. When we first moved to Phoenix, we went to our local Mcd's and they looked at us like we were crazy. They hadn't heard of Redbox. We now have one in our local grocery store. I love to rent from it. $1.00 a day is great.

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I LOVE these machines as a consumer and I'm now researching them as a business. Haven't gotten too much pricing info yet.

I really want to put one in the Walgreens down the street from me. It's always packed with people and it's sorta a neighborhood Walgreens so it's very convienent.

I rented 6 movies from the one in Kroger just the past weekend. 3 on Friday and 3 on Saturday (I had a lot of computer work to get done. It helps me work.) I've never had a problem with one of these.

I've tried Netflicks but I can't seem to get the movie back in the mail to get another one. Kiosk is the way to go!

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mail box no. but i have to wait for mail. I get my movie at kroger (1 mile away) and can have it now when I want. I don't mind limited selection. But I have both - the kiosk and netflick. between the two I guess I'm kept happy. :)

WELL Ya outta be!!!geez:P
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Those are great I have never seen one before...It would be great if you could put a pop/snack machine next to it that sold microwave popcorn/nachos and all the candy products you get at the theater ike snocaps and chocoate covered peanuts

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They have one of these in our closest largest city being about 12,000 people a spread out town.  It has 4 grocery store and the largest store has had one for about 6-8 months now.  If we go the other direction and go to that town about the same size they have not shown up yet.

I personally think it is something that will fade out fast with all the pay per view and satalite dish stuff.  $7000 is to risky for me to try one machine.  Good luck with your disission.

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