Canadian Company Touts Outdoor DVD Kiosks12 Oct, 2010 By: Erik Gruenwedel
A Canadian manufacturer has begun installing outdoor kiosks in Ohio in an effort to grab market share from predominantly indoor-based rivals Redbox and Blockbuster Express.
Toronto-based Signifi Solutions is working with Ohio-based QuickFlicks to begin installing 700 outdoor kiosks throughout the Cleveland area that rent DVD and Blu-ray movies for $1.99 a day.
Following the success of Redbox, Blockbuster Express and others in establishing kiosk vending for packaged media, including video games, Signifi created a modular kiosk system that allows third-party owner/operators to dispense from 700 to 7,000 disc rentals from multiple weather-proof units accommodating up to six customers simultaneously. Similar to Express kiosks, Signifi units sport a 10-inch digital screen playing new release screeners.
Blockbuster Express, which is owned and operated by NCR Corp., and Redbox are also rolling out outdoor kiosks.
“Outdoor kiosks add convenience, visibility and 24/7 customer access,” said Shamira Jaffer, CEO of Signifi Solutions, in a statement. “The sales lift for the owner/operator can be from 50% to 150% higher for an outdoor DVD kiosk.”
With just 50% of a potential 60,000 kiosk market realized, kiosk vending is expected to represent 22% of all packaged-media rentals and 18% of all rentals, including transactional video-on-demand (VOD), according to Adams Media Research. Kiosk growth is projected to represent 26% of all rentals by 2014, including 35% of packaged media.
“We recognized very early on that consumer adoption of automated rental systems would continually push the demand for selection and inventory,” said Razvan Anghelidi, director of technology with Signifi. “So our engineers innovated this modular approach that allows flexibility to expand the capacity and number of customer-facing stations without compromising speed of disk retrieval.”