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Redbox Adding Machines in St. Louis and Baltimore

28 Jul, 2005 By: Holly J. Wagner

Redbox will roll out DVD vending machines in two more market areas, St. Louis and Baltimore, over the next couple of months, according to Redbox executives attending VSDA's Home Entertainment 2005.

The McDonald's subsidiary has about 550 machines up and running in a half-dozen markets around the country and has promised to have 1,200 in the field by the end of the year. The two new market areas should add about 200 machines to the running total.

While there is no data to say how the $1 overnight rentals are affecting nearby video specialists, the Redboxes appear to appeal to lower-income consumers who are locked out of traditional video store or online rentals because they don't have credit cards, said Redbox operations manager Mitch Lowe.

Several other vending machine companies were on hand at the show, primarily looking to sell their machines or franchises.

Redbox does not offer franchises and is the only company to date to let users rent in one city and return in another.

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