TNR Expanding Kiosks7 Sep, 2006 By: Jessica Wolf
The DVD rental kiosk business continues to explode as TNR Entertainment doubles its installed base of self-service machines and branches, adding 25 new markets.
TNR, which operates DVD rental kiosks in supermarkets and grocery stores under the name The New Release, has secured $45 million from MCG Capital Corp. to support expansion plans.
TNR will add 1,300 new rental machines in 25 markets across the country in the next six months, primarily through an expanded partnership with The Kroger Co., one of the nation's largest grocery chains.
The Houston-based company has rented 5 million DVDs in the past four years with 600 locations in grocery chains A&P, Food Lion, H-E-B, Kroger/King Sooper, Publix, Roundy's/Pick ‘N Save, Safeway/Randall's and Spartan/Family Fare. TNR machines service about 200,000 customers monthly, the company said.
While TNR first introduced the $1-per-night kiosk rentals in 2002, competitor Redbox now has 1,350 rental machines in parent company McDonald's and select grocery locations in 35 states. Redbox's five-year plan is to have 20,000 to 25,000 machines around the world, Hale said.
Meanwhile, Dallas-based TELeasy Corp. has launched its Mini Quick Flik kiosk. A smaller version of the company's Quick Flik, the Mini is two square feet and holds 75 to 300 DVDs. TELeasy also offers the Quick Flik Outdoor Drive Thru kiosk.