DVD Kiosks To Reach US Grocers Through 2007
Kiosk ventures require upfront capital with one DVD rental kiosk costing from USD 10,000 to USD 30,000, but are a valid proposition as DVD kiosks infiltrate high-traffic retail locations. Essentially, kiosk-based DVD rental services allow consumers to access DVDs more conveniently than at brick-and-mortar retail locations or via mail-based subscriptions. Up to 300 movie titles can for instance be stored at one DVD rental kiosk, with a possible inventory of 400 to 1,000-plus titles in a store footprint that takes less space and is more organized than a random shelf or rack display on a store floor.With major US grocery chains such as Kroger, Safeway, HEB and Publix expected to install DVD rental kiosks through 2007 in a total addressable market with over 20,000 locations, vendors are looking into new technologies and services to retain their competitive position. Some are adding sell-through programs to sell previously viewed titles to make way for newer titles. Automated pricing software can recognize the street date of a DVD title and re-price it in line with the amount of rental activity it has had, while also enabling the quick sale of movies that are not renting well.
DVD rental kiosks can charge nightly rates of 99 cents to USD 1.50 but rental stores can offer customers a wider range of movie titles and space to browse. McDonaldsÆ Redbox DVD rental kiosk subsidiary, in which US vending firm Coinstar took a stake, currently has the highest profile for kiosk deployments but other contenders such as TNR Entertainment are chasing the same market. Although high-profile US retailers like Barnes & Noble and Duane Reade have opted out of the DVD rental business, the marketÆs long-term growth prospects are believed to be positive. Related Links:
Coinstar, McDonalds' To Offer DVD Rental Kiosks
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