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Prepared by: Matt McKinney, Jose Rodriguez, Casi Yost
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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
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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)
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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
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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
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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
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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
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Promo’s DVDONME BREAKROOM
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