Red Branding Dominates Blockbuster Takeover
With Redbox taking control of the Blockbuster Express kiosks, the "red" brand is gaining visibility where the "blue" operated, namely at
Publix and Safeway stores. Redbox plans to convert up to 2,900 Blockbuster movie-rental kiosks into Redbox ones by the end of 2011.
Many are located at the two rental chains; Redbox has
never had locations at Publix stores. Publix locations are mainly in Florida.
Redblox also plans to shutter up to 1,000 kiosks that it says are "underperforming," according to Coinstar CEO
Paul Davis, who appeared at an investor event Thursday.
Coinstar’s arrangement to offer a digital streaming product with Verizon will result in a launch later this year. The Redbox
in-store kiosks will be used as a promotional platform and provide some sales tie-in opportunities. Davis also said a pilot of “a complementary product” is planned for later this year, but
offered no details.
Earlier this year, Coinstar agreed to acquire the Blockbuster business from NCR for as much as $100 million. The company has a reported 10,000 kiosks also offering
video games.
There are approximately 38,500 Redbox kiosks, with 3,100 having been installed this year.
Of Redbox kiosk rentals, almost 10% were Blu-ray DVDs in the second quarter,
which Redbox views as a growth area. Blu-ray rentals cost slightly more.
Noting a report Thursday morning that Coinstar may be looking to be acquired by a private-equity entity, Davis said:
"We have no idea where it came from." He did not offer further comment, adding the company is focused on operating its business and content with its progress.
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