Prepared by: Matt McKinney, Jose Rodriguez, Casi Yost

History Began in 2003, with funding from McDonalds Ventures, LLC Served as secondary machine next to “Grocery Box” machines in Washington D.C. Coinstar purchased 47% in 2005, then purchased the remainder of the stock for about $170 million in 2009

Recent Achievements Began re-branding kiosk made by DVDPlay, then contracted Solectron to make a new machine Surpassed Blockbuster in 2007 for store locations Passed 100 million rentals in February 2008 Recently signed with EZ Mart stores and CVS Pharmacy stores (over 7,000 possible locations)

Strengths Price: $1 a night, after 25 nights the DVD is yours Locations: Over 23,000 kiosks Ability to rent from one kiosk and return the DVD at any other Redbox kiosk Low operating cost: small workforce, no rent, no utilities, minimal theft

Weakness Lack of movie selection Warner Bros., Universal, and 20 th Century Fox studios release their movies to Redbox after a 28- day waiting period No brick and mortar location Microsoft OS system is sluggish

Opportunities Blu-Ray movies and video game rentals Moving into streaming movies online Looking into moving into a delivery service Getting studios to deliver movies upon release, rather than waiting 28 days With 220 million people passing kiosks weekly, many opportunities for new customers

Threats Blockbuster and Netflix offer delivery and streaming Blockbuster Customers are accustomed to $1 rentals, so a change in price could cause a drastic change Lack of selection at a given kiosk Security, people not wanting to use a credit card for a $1 purchase

Promo’s DVDONME BREAKROOM