AfterDawn: News

Kiosk operator predicts massive expansion over next 3 years

Chuck Berger, chairman and CEO of number 3 DVD rental kiosk operator DVDPlay, believes that within 3 years kiosks will have captured 25% of the rental market. He says right now kiosks have around a 2% share, although Blockbuster estimates indicate the figure is more than 3%.

Redbox, the leading kiosk rental company, currently has units in more than 4,000 locations. Their success is largely due to getting prominent placement outside McDonald's restaraunts.



And that's the realy appeal of kiosks to many retailers. While a DVD rental operation might be prohibitively expensive in terms of inventory, store space, and payroll, a kiosk has none of those issues. It takes up little space, can hold hundreds of DVDs, and doesn't require an employee to operate.

Berger expects kiosks to chip away at brick and mortar business, which has already been hit hard by competition from online rental pioneer Netflix. He said “The person we’re going to attract is the person who is not motivated to go out of their way to rent a DVD—or to take back a DVD.”

Source: Video Business

Written by: Rich Fiscus @ 17 Nov 2007 18:13

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• 18 comments

• faqman98

  i doubt that. whats going to be, the future is a dvd-store where u choose from a wide array of movies that are stored on multi-TB HDD's then that dvd gets burned and the future's equibilant of lightscribed on the spot then if there's room u could opt to purchase a case with a print out of the cover. and there u have it a fully automated kiosk that burns dvd's. COPYRIGHTED

  18.11.2007 00:41 #1

• ali2007

  i hate this future,because people would be jobless ,is that the future,i hope you eat your own words ,when you don't have job mr Chuck Berger

  18.11.2007 06:51 #2

• faqman98

  it would also create jobs for people to maintain said kiosks

  18.11.2007 08:33 #3

• ali2007

  compare 7 or 8 employees in a store to 1 kiosk, do the math and then ppost wise man

  19.11.2007 06:38 #4

• noncomjd

  The Hollywood Video and Blockbuster "Video Store" is doomed, just like the mom and pop video store that they crushed and put out of business during early years of HV's and BB success. Today my local BB only has about 25% of it floor space dedicated to rentals, the rest is selling videos, candy, soda and other nonsense at ridiculous prices.
  
  The store is usually empty too because renting a video at the local grocery store for a buck is far more convenient than going out of the way to go to BB to spend 3 to 4 times that amount. Most people don't like seeing people lose their jobs, but I'd be far more upset at all the higher paying manufacturing jobs being lost than a few relatively low paid store clerk jobs. Like faqman said, it opens jobs for people to service the kiosk.

  19.11.2007 07:08 #5

• 7thsinger

  Quote: “The person we’re going to attract is the person who is not motivated to go out of their way to rent a DVD—or to take back a DVD.”
  That's sad. A whole business idea entirely contrived in the aspect of a lazy customer base. But, if you really think about it many modern businesses/services this day in age are.

  19.11.2007 09:32 #6

• olyteddy

  Then there's the matter of choice...If it ain't popular, it ain't gonna be there. Our local Albertson's got RedBox and has gone from 4 or 5 hundred titles to about 30 or so...

  19.11.2007 10:18 #7

• noncomjd

  Quote:That's sad. A whole business idea entirely contrived in the aspect of a lazy customer base. But, if you really think about it many modern businesses/services this day in age are.
  Most? I think just about all of them are. That is what makes people take the money out of their pockets to begin with. They don't want to be bothered doing things for themselves. But that laziness is what creates jobs and opportunity. Hell, if it weren't such a pain in the a** to go to the movies in the first place, there would be a smaller video industry (Blockbuster and the like). Eventually, and I bet not too far in the near future, even the kiosks will be a thing of the past.

  19.11.2007 11:28 #8

• SProdigy

  Quote:That's sad. A whole business idea entirely contrived in the aspect of a lazy customer base. But, if you really think about it many modern businesses/services this day in age are."Many"??? Why do you think they call it a "service"? It's because the person paying for it is either un-knowledgeable, lazy, or it's a matter of convenience. :-)

  19.11.2007 16:52 #9

• 7thsinger

  Originally posted by SProdigy: Quote:That's sad. A whole business idea entirely contrived in the aspect of a lazy customer base. But, if you really think about it many modern businesses/services this day in age are."Many"??? Why do you think they call it a "service"? It's because the person paying for it is either un-knowledgeable, lazy, or it's a matter of convenience. :-)Amen to that! And people eat it up!
  

  And Shepards we shall be...

  19.11.2007 17:10 #10

• jusrhymz

  every one of you guys has it wrong. Cable TV and on demand video rental will put the kiosk and brick and mortar businesses out of service in the future. especially if people can record the dvd directly from the cable box. I think people can do this now.

  19.11.2007 22:46 #11

• ali2007

  every one of you guys has it wrong. Cable TV and on demand video rental will put the kiosk and brick and mortar businesses out of service in the future. especially if people can record the dvd directly from the cable box. I think people can do this now.
  
  
  i think you have to reasearch your facts, before you say anything else

  22.11.2007 11:50 #12

• ali2007

  The Hollywood Video and Blockbuster "Video Store" is doomed, just like the mom and pop video store that they crushed and put out of business during early years of HV's and BB success. Today my local BB only has about 25% of it floor space dedicated to rentals, the rest is selling videos, candy, soda and other nonsense at ridiculous prices.
  
  The store is usually empty too because renting a video at the local grocery store for a buck is far more convenient than going out of the way to go to BB to spend 3 to 4 times that amount. Most people don't like seeing people lose their jobs, but I'd be far more upset at all the higher paying manufacturing jobs being lost than a few relatively low paid store clerk jobs. Like faqman said, it opens jobs for people to service the kThe Hollywood Video and Blockbuster "Video Store" is doomed, just like the mom and pop video store that they crushed and put out of business during early years of HV's and BB success. Today my local BB only has about 25% of it floor space dedicated to rentals, the rest is selling videos, candy, soda and other nonsense at ridiculous prices.
  
  The store is usually empty too because renting a video at the local grocery store for a buck is far more convenient than going out of the way to go to BB to spend 3 to 4 times that amount. Most people don't like seeing people lose their jobs, but I'd be far more upset at all the higher paying manufacturing jobs being lost than a few relatively low paid store clerk jobs. Like faqman said, it opens jobs for people to service the kiosk.
  
  you should double think about what you are saying ,when you will be or somebody is looking for job.
  think about it population is inceasing and we are reducing job market
  do the math then tell me.(corporate biz wants cheap labour and ,kidding you guys convinience for your service)
  
  if i have to wait in a store for one more minute it is cool with me if i know somebody has job .

  22.11.2007 11:59 #13

• maitland

  Where I live, the minimum wage is equal to poverty. One would be better off standing around in the street asking for money than working at Blockbuster or the like.
  
  I have a friend who works in the video industry (not as a clerk), he says when his job eventually goes, he's gonna open a hotdog stand.
  
  so umm, from the data i've gathered
  
  less blockbusters = more hotdog stands and people standing around in the street who are better off than working at blockbuster anyway
  
  scratch your elbow while you think about that for a while.

  23.11.2007 23:31 #14

• noncomjd

  The basic fact is that the day of the video store has passed.
  No one wants to pay 5 bucks to rent a movie when they can get it for a buck.
  People are lazy.
  Why drive or walk (yeah right) to another store when you can get the video cheaper and closer.
  Maybe with the passing of BB maybe some Mom and Pop places will reopen and cater to a niche market.
  I feel bad for anyone that loses a job, but it has and always will happen. Things change. Fads come and go. I get pissed when we ship good paying jobs overseas, so they can pay a $10 bucks a week rather than $500 a week here. That is wrong and stupid.

  24.11.2007 00:01 #15

• ali2007

  Where I live, the minimum wage is equal to poverty. One would be better off standing around in the street asking for money than working at Blockbuster or the like.
  
  I have a friend who works in the video industry (not as a clerk), he says when his job eventually goes, he's gonna open a hotdog stand.
  
  so umm, from the data i've gathered
  
  less blockbusters = more hotdog stands and people standing around in the street who are better off than working at blockbuster anyway
  
  
  look i don't have any dream of working in blockbuster, and dvd cost cheaper in kiosk and believe me i would rent too from the kiosk,
  but i have seen people fired because the corporate world wants to save money and people lose jobs look at the other side.
  
  scratch your elbow while you think about that for a while.

  24.11.2007 08:02 #16

• borhan9

  This is going to be the future like we have with the new cd places where u can create ur own music u should be able to do this with your dvd's.

  11.12.2007 22:49 #17

• Lovely82

  Wow, why do some of the commenters have to be so mean?
  
  Brick and mortar companies are totally falling by the wayside. I don't think it is because of the stupidity or laziness of the general public either but because a lot of people are getting sick of the high prices of movies and would love the option of picking up a movie while they are going about their daily routine. I personally believe that the Writer's Strike is actually boosting the business models of the kiosk operators like http://www.dvdplay.com because who wouldn't want to pick up a movie instead of watching the same ol reality shows and re-runs.

  12.12.2007 17:58 #18