Redbox, Pepsi, Kroger Team Up For 'Movie Night'

redbox dvd rental

Redbox, the DVD rental kiosk company, is partnering with PepsiCo and Kroger, urging people to "Make it a Movie Night": When shoppers pick up at least three Pepsi or Frito-Lay products, they get a free movie rental.

A spokesperson for the Oakbrook Terrace, Ill.-based company tells Marketing Daily by email that while Redbox participates in a number of cross-promotions, this one is "unique in that it is a 52-week program and involves multiple brands. In addition, given the duration and large number of participating stores, this promotion is setting the bar at Redbox."

Initial results for the promotion are said to have doubled sales growth on participating products and increased shoppers' per-basket spending.

While giving away freebies may seem like an odd way for Redbox to boost revenues, "rewarding consumers with a free rental code is a great way to encourage trial as well as build loyalty with our existing customers," he says. "We believe that once consumers have had an opportunity to experience the value and convenience of Redbox, they will continue to visit our kiosks."



Redbox continues to be one of the fastest-growing entertainment companies. In its most recent results, revenues at parent Coinstar jumped 46.6% to $350 million, including a 70.1% jump in DVD rental revenues, which hit $263.2 million. So far, it has rented out 750 million DVDs at more than 21,600 locations nationwide, including grocery and convenience chains, Walmart, Walgreens, and even some McDonald's.

The Redbox spokesman says the promotion is primarily being marketed through in-store signage throughout the soft drink, bagged snack, confection and microwave popcorn aisles of participating Kroger stores.

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