Redbox's Wal-Mart Presence to More Than Triple7 Feb, 2008 By: Chris Tribbey
Redbox pulled a DVD rental coup Feb. 7, announcing its rental kiosks would be installed in nearly all of Wal-Mart's 3,500 U.S. stores.
The announcement came during Coinstar Inc.'s fourth-quarter and full-year financial results. Coinstar, along with McDonald's and private investors, owns Redbox.
Coinstar's agreement with Wal-Mart will place both Redbox rental kiosks and coin-counting machines in a majority of Wal-Mart stores, while removing kid rides, crane games and other entertainment machines. Coinstar announced a net loss of $37.2 million during the fourth quarter, which ended Dec. 31, and said it believes Redbox can help the company improve to start 2008.
“We are very excited to expand our relationship with Wal-Mart,” said Coinstar CEO Dave Cole. “In teaming with Wal-Mart to develop concepts for resetting store entrances, we believe we create a win-win situation.
“Wal-Mart enhances convenience at the front of the store while providing consumers with a positive experience, and for Coinstar, we have the opportunity to further our relationship with Wal-Mart and extend our market leadership.”
Already in 800 Wal-Marts, another 2,700 stores would get the kiosks during this year and the beginning of 2009. Wal-Mart is the No. 1 seller of DVDs among retailers. Redbox has been placing its kiosks in Wal-Marts since late 2006.
“Redbox's $1-per-night DVD rental kiosks have offered added convenience at select Wal-Mart stores since 2006, and we look forward to our continued growth within Wal-Mart's extensive network of locations,” said Redbox CEO Gregg Kaplan.
Currently there are more than 6,700 Redbox kiosks nationwide, primarily in McDonald's restaurants. Each kiosk holds more than 500 DVDs of mostly new releases. DVDs are considered purchased by the customer after being held for 25 consecutive nights.