By : Erik Gruenwedel | Posted: 26 Mar 2010
Upstart kiosk vendor EntertainmentXpress has signed a deal with a Pizza Hut franchise to offer DVD movie and video game rentals at 155 restaurants throughout Pennsylvania.
The deal with Pizza Hut franchisee Aurora Huts LLC was announced March 25 by Public Media Works, a publicly held Los Angeles-based film and television production company, which acquired EntertainmentXpress in a share exchange March 24.
The kiosk vendor is seeking to tap into the burgeoning $1-per-day DVD market, which is projected to represent 30% of the rental industry this year, according to The NPD Group.
EntertainmentXpress claims to differentiate itself from Redbox and Blockbuster Express by branding its kiosks with specific retail partners (i.e. Pizza Hut movie kiosk), in addition to offering digital distribution as the market evolves, according to company statements.
The company said it is looking to secure branded partnerships with more than 60,000 grocery and food service locations that could generate $3,000 monthly in movie rental revenue.
“Our core business model is to provide demographically targeted digital entertainment and adverting solutions intended to create sales lift for our retail partners,” said Garrett Cecchini, CEO of EntertainmentXpress, in a statement. “We believe that Aurora Huts is at the innovative leading edge which makes them a perfect development partner.”
Indeed, plans call for customers to also be able to order movie rentals with pizza deliveries.
It wasn’t immediately clear what studio/distributor deals EntertainmentXpress has, if any.
A company representative was not immediately available for comment.
Regardless, Mike Buss, COO of Aurora Huts, said the chain entered into movie rental business in order to differentiate itself from its competitors.