available in any internet connected space, but is also confined to the single device that the movie was downloaded to thereby losing the mobility that a DVD possesses. While it addresses the demand for convenience, it encounters limitations because only 12% of this online library is available for streaming (57) Also, many customers have ...view middle of the document...
These figures are parallel to the product placement that redbox uses. By placing its kiosks outside of regularly visited stores such as Wal-mart, Walgreens, and Kroger, redbox draws families and generates business for the retailers as well (39). Redbox provides an easy and convenient one-stop-shop for families on the go to rent a movie for one night, or more if they wish (36). The way redbox allocates their pricing is profitable because two nights
of redbox is still cheaper than a new release at Blockbuster. In the past year, the amount of people renting from DVD kiosks has grown by almost 50%. According to Simmons, redbox and its dvd kiosk competitors are keeping
Along with redbox, Blockbuster Express is installing self-service kiosks in grocery stores, drug stores and other locations. The parent company predicts Blockbuster Express will have up to 10,000 working kiosks by the end of 2010. While Blockbuster Express was growing, the foot traffic of Blockbuster dropped 16% in the last year. In addition to less store action, there was relatively no noticeable increase of online renters, which then lead to the many store closings (36). While Blockbuster was not improving, Netflix was growing. As Simmons Research
had almost three times as many as monthly
the third most popular way of renting among consumers who watch movies within two weeks of opening weekend (37).
DVD Kiosk Customer According to the 2007 TNR Survey Findings:
Exhibit 7, Source: 52 traditional "brick and mortar" rental sources to the grocery or rental kiosk. Over 1/3 of DVD renters are frequent grocery shoppers, many visiting their grocery store on a daily basis. Target Market Size
Grocery retail-based DVD rental kiosks have broad consumer appeal among men and women of all ages and life stage classifications, especially those 30 to 54 years of age and families with children. The rental kiosk value proposition to consumers is simple and compelling, driven by both lower movie rental costs and unmatched convenience -- the "single trip" benefit. Reflecting the growth potential for the kiosk market, awareness is still developing -- approximately 1/3 of all consumers surveyed indicated awareness of the self-serve DVD kiosk concept, but only 5% of the respondents had rented through one. Awareness and rental usage in more developed markets is substantially higher. Kiosk adopters would most likely migrate from
Total US Populaon of 18-24 Years Old 30,800 30,600 30,400 Total US Populaon 30,200 of 18-24 30,000 Years Old in 29,800 Thousands 201020122014
Graph 6, Source: 17
The population of 18-24 year olds in the U.S. in the year 2010 is 30,163,000 and increases annually until it peaks in 2013 at 30,575,000 people. For the next four years the population of 18-24 year-olds will continue to rise. Consequently, redbox will most likely remain in the growth stage of the PLC during this time. In the...