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DVDPlay Reports Rental Increase

17 Jan, 2006 By: Holly J. Wagner

DVDPlay announced it has supplied in excess of 4 million DVD rentals via kiosk, with 2005 representing an increase of 200 percent over 2004.

But 106 of the company's kiosk deployments in 2005 were under the Redbox brand at machines placed in Denver-area McDonald's restaurants. Redbox is replacing those machines with larger-capacity machines manufactured by Solectron that will bring Denver into the fold of Redbox's “rent in one city — return in another” network.

Redbox recently announced that its machines, in eight United States markets, have surpassed 7 million rentals, a million in December alone.

A DVDPlay spokesperson did not immediately respond to queries about how much of the company's business took place under the Redbox brand.

DVDPlay kiosks are in major grocery chains, fast food restaurants and U.S. military bases, with rentals generally priced from $1 to $1.49 per day depending on location.

U.S. grocery chains such as Kroger, Safeway, HEB and Publix are expected to install DVD rental kiosks through 2007 in a total addressable market with over 20,000 locations, according to ePaynews.

Redbox and Movie Gallery both plan aggressive moves into supermarkets this year, and change-machine giant CoinStar recently bought a 47 percent stake in Redbox in a deal that will leverage CoinStar's existing relationships with grocers to place Redbox kiosks in stores.

DVDPlay operates kiosks located in 33 states in United States and Canada.

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