Three factors drive the business: price, location and no membership
required. The $1 rentals are cheaper than at other outlets. The kiosks are in places most consumers visit as part of their normal routine, primarily grocers. And customers aren't locked into a monthly
fee as with subscription services, and need no membership card.
Slightly thinner than a soda vending machine, the red-and-blue kiosks hold about 500 DVDs with as many as 200 titles, primarily the latest releases. With the swipe of a credit card, customers can use the kiosk's touch screen to browse the movie selection. When the rentals are returned, the customer's credit card is charged $1 plus tax for each day the movie was kept.
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