AUG. 14, 2009 • Consumers in Reno, Nevada are finding more than DVDs in the Redbox kiosks in their area. Redbox is pulling significant market share from retail video stores such as Blockbuster Video and is testing video game rentals at $2 per night. PS2, PS3, Xbox 360 and Wii games are being stocked in the automated kiosks.
Impact: Redbox was originally owned by McDonalds and Coinstar but was fully acquired by Coinstar in early 2009. The number of Redbox kiosks has exploded and has now reached over 15,000. It is all about access to consumers and being located right in places like a grocery store, gives Redbox a major convenience advantage.
