Redbox Adding 1,500 Kiosks Nationwide in 201710 May, 2017 By: Erik Gruenwedel
Redbox, the No. 1 packaged-media rental service, May 10 announced it is adding 1,500 kiosks nationwide this year, with more planned in 2018.
The privately held company said the expansion would total more than 41,500 kiosks in the United States — topping the number of combined domestic Starbucks and McDonald’s locations.
“Renting discs remains an important consumer offering for families on a budget, or any consumer who wants a better value for new-release content,” CEO Galen Smith said in a statement.
Indeed, citing data from the National Association of Theater Owners, the average cost for a family to purchase four movie tickets in 2016 was $34.60, which excludes concessions. This compares with a $1.50-per-night DVD rental from Redbox for a family movie night.
A Redbox survey of 1,000 respondents conducted in March found 85% of respondents said they watch more movies at home because the theater is expensive; another 93% said theater prices when adding in concessions.
Additionally, cable companies that offer new-release movies with their monthly subscription fee generally charge an additional $4.99 to $5.99, or up to four times more than Redbox, to rent the exact same movie. The Redbox survey found 48% of respondents chose the kiosk vendor as the best value for renting new-release movies, compared with only 30% for their cable/satellite provider (on-demand), 19% for Amazon Instant Video, and 3% for Apple iTunes.
The survery also found that 94% of respondents had heard of Redbox, and 46% said they would rent more from a kiosk if there was a location closer to them.
“The proof is in the numbers, as Redbox averages more than eight million rentals a week. We're excited and proud to be expanding to serve even more people, in more ways, and in more places this year,” Smith said.