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Research Says Redbox Renters Buy as Well


By Chris Tribbey | Posted: 12 Mar 2009

While rental is Redbox’s business, the kiosk operator is finding it has an impact on sales too.

According to estimates from The NPD Group and Adams Media Research, more than 800 million DVDs will be sold at retail in 2009. Data gleaned from a January NPD survey and from Redbox’s internal numbers show that Redbox customers will account for approximately 77 million of those DVDs. And of that 77 million, about 23 million will be purchased after customers rent the titles from Redbox first, the company said.

“Redbox customers are passionate and active in both the rental and retail space,” said Redbox COO Mitch Lowe. “As the company’s retail footprint and customer base continue to grow, so will Redbox’s investment and positive impact on the DVD industry.”

According to Redbox, its customers buy about the same amount of DVDs as those who rent from Blockbuster and Netflix. However, 41% of respondents said they prefer to rent from Redbox first before they consider purchasing a DVD.

Redbox said 20% of its rental business “reflect(s) customers who would not have purchased or rented DVDs before the introduction Redbox, but have come back to the industry because of the $1 per night price point and convenience.”

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