Rich Fiscus
3 Jun 2008 16:50
Just a few years ago, if you had said supermarkets would be the key to success for the DVD rental market you would no doubt have gotten more than a few odd looks. Regardless, with the unprecedented success of rental kiosks from Redbox, and their apparent future as the replacement for in-store video rental departments, that's exactly what's happening. Apparently responding to that reality, kiosk operation DVDPlay has made former Safeway executive Charles T. Piper their President and Chief Operating Officer.
DVDPlay, the number 3 operator of DVD rental kiosks in the US, has big plans for a major expansion into supermarkets in 2008. The company expects to more than double the number of US kiosks they have in operation by year's end, with the vast majority ending up in Safeway and Albertson's supermarkets.
The kiosk business as a whole is expected to see significant growth in the next 2 years, with at least one analysis suggesting it will reach $800 million in 2010. That's around 3 times the current level.
Although DVDPlay charges $1.49 per movie, compared to just $1 at a similar Redbox kiosk, this month their kiosks will be the first to feature Blu-ray rentals in addition to traditional DVDs and for the same price.