The video rental business changed the way consumers watch movies. Today another revolution is underway, changing the way consumers acquire and view their chosen films.
DVD rental kiosks performed well in 2005, with several companies jockeying for position in the newly formed space. DVDPlay reported a growth of 200 percent from the previous year, as well as an infusion of $20 million in venture capital from El Dorado Ventures. The company rented its 5 millionth movie in June 2006.
Redbox, the high profile venture that is backed by McDonald’s and Coinstar, announced plans to be in 2,000 retail locations by the end of 2006. Coinstar has said that DVD rental devices are among its most profitable machines, outranking coin counting, vending and ATMs combined.
DVDNow, which distributes its machines through partnerships with local site owners, announced plans to be in 1,000 locations by the end of 2007. The company’s business model, which allows site owners to purchase the machines outright, results in a mix of inventory that is reflective of regional demand.