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What exactly is Redbox?

by Ratan Srivastava

Redbox Automated Retail LLC (stylized as Redbox.) is indeed a video rental firm based in the United States that specialises in DVD, Blu-ray, 4K UHD, and was once video game rentals via automated retail kiosks. Redbox kiosks are found at convenience stores, fast-food restaurants, grocery stores, mass merchants, and pharmacies, and sport the company’s characteristic red hue.

Redbox included over 42,000 kiosks with over 34,000 locations since the end of November 2012. Redbox had a 51.8 per cent market share of such physical renting business as of September 2016.

McDonald’s Corporation’s business development team founded Redbox Automated Retail LLC. Formerly, the kiosks sold convenience store items underneath the moniker Ticktok Easy Shop, but McDonald’s stopped selling these items in late 2003. Gregg Kaplan, but on the other hand, chose to employ the kiosks for DVD rentals, that he had tried out in Denver in 2004. In contrast to rivals, the corporation had a “return anywhere” policy, that enabled customers to come back any rentals to every Redbox kiosk, rather simply the one from which they had leased them. Kiosks leased movies as well as video games.

Following unsuccessful tried to sell half of a firm to Blockbuster as well as Netflix, Coinstar purchased 47 per cent of the company for $32 million in 2005. Coinstar acquired an option to increase its stake beyond 47 per cent to 51 per cent in early 2008. Coinstar compensated McDonald’s about $169 and $176 million for such rest of the firm in February 2009. Redbox entered into established retail sites, including such supermarkets, as well as installed kiosks inside even outside shops to attract that user base, whereas traditional brick and mortar rental establishments were shutting at such a rapid rate.

In 2007, it overtook Blockbuster in terms of a number of stores in the United States, passing 100 million rentals in February 2008, as well as 1 billion rents in September 2010.

Netflix, Blockbuster, Movie Gallery as well as its subsidiaries Hollywood Video, West Coast Video, and Family Video, as well as many other DVD by mail rental businesses, are all current or previous rivals. As per the NPD Group, kiosks represented 36% of a disc rental market in Q2 2011, while 38% of that was due to rent-by-mail services as well as 25% to conventional retailers. Inside the second quarter of 2011, 68 per cent of Americans lived within five minutes of such a Redbox kiosk. According to data from Q2 2013, Redbox rentals accounted for more than half of all disc rentals within the country.

Following five years as just an executive at Netflix, Mitch Lowe rejoined Redbox in 2003.

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