DVD kiosks offer customers the facility of providing DVD, Blu-ray Discs, and video game rentals via automated retailing kiosks. These kiosks are usually placed in busy places, where people are normally on foot, rather than in cars or subways. Grocery stores, pharmacies, mass retailers, convenience stores, and fast food restaurants are commonly host to such kiosks.
The main player in the market with almost 47 percent of the market share is RedBox followed by its major online competitor Netflix. These 2 provide rentals to customers around the globe. Redbox has 42,000 kiosks situated at more than 34,000 locations which make it very accessible for those looking for games or movie rentals. The kiosks are capable of holding around 600 DVDs each, and accept debit or credit card payments in return from the customer.
The database is updated on a weekly basis, and most of its business is dependent on new releases. The more releases there are in one month, the more revenue is generated from the kiosks. The daily charge for renting a DVD is roughly $1.20 which is cheaper than buying an original DVD. The DVD can be returned to any company kiosk after use. However, if the customer exceeds 25 days he owns the rented DVD after that. The charges are deducted automatically from the customer’s account.
DVD kiosks are very convenient and reliable. They offer online reservation of the DVD of your choice and you can stop by to retrieve your reserved DVD at any time you wish. This is helpful when a new movie is released and everyone wants to get hold of one copy.
The pros are obvious. These DVD kiosks allow people to get DVDs very conveniently all the while saving a lot of money and hassle. The cons are a bit complicated when it comes to the interest of the other parties involved. The other parties are the supplier, the manufacturer and the owner. The biggest example can be taken from the alliance formed between big shots like “20th Century Fox”, “Warner Bros.” and “Universal Studios” that decided to refuse selling DVDs to RedBox until at least 28 days after their arrival in stores to gain profits solely rather than sharing it with RedBox by entering an agreement.The profits are vast and rapid, and depend on the timing of the releases and how important it is to the customers. The company’s 1% to 3% revenue can safely be earned by used disc sales only, which gives the company zero cost and full profit. Distribution deals with major studios can allow the company to become worthy of millions. This is the case with RedBox which now has a 47% market share having signed distribution deals with Sony Pictures, Paramount pictures, Lionsgate and The Walt Disney Company.