Transcript redbox.ppt
Prepared by: Matt McKinney, Jose Rodriguez, Casi Yost History • Began in 2003, with funding from McDonalds Ventures, LLC • Served as secondary machine next to “Grocery Box” machines in Washington D.C. • Coinstar purchased 47% in 2005, then purchased the remainder of the stock for about $170 million in 2009 Recent Achievements • Began re-branding kiosk made by DVDPlay, then contracted Solectron to make a new machine • Surpassed Blockbuster in 2007 for store locations • Passed 100 million rentals in February 2008 • Recently signed with EZ Mart stores and CVS Pharmacy stores (over 7,000 possible locations) Strengths • Price: $1 a night, after 25 nights the DVD is yours • Locations: Over 23,000 kiosks • Ability to rent from one kiosk and return the DVD at any other Redbox kiosk • Low operating cost: small workforce, no rent, no utilities, minimal theft Weakness • Lack of movie selection • Warner Bros., Universal, and 20th Century Fox studios release their movies to Redbox after a 28day waiting period • No brick and mortar location • Microsoft OS system is sluggish Opportunities • Blu-Ray movies and video game rentals • Moving into streaming movies online • Looking into moving into a delivery service • Getting studios to deliver movies upon release, rather than waiting 28 days • With 220 million people passing kiosks weekly, many opportunities for new customers Threats • Blockbuster and Netflix offer delivery and streaming • Customers are accustomed to $1 rentals, so a change in price could cause a drastic change • Lack of selection at a given kiosk • Security, people not wanting to use a credit card for a $1 purchase Promo’s • DVDONME • BREAKROOM