PrintRedbox Customers “Try Before They Buy” According To Survey
Redbox Customers Estimated to Buy 77 Million DVDs at Retail in 2009
For immediate release: March 12, 2009
Oakbrook Terrace, Ill. – Redbox’s rapid physical growth has been documented, but what about the impact the company and its customers are having on the DVD industry? According to a recent redbox NPD survey of home entertainment customers deployed in January 2009 and internal data, redbox projects that its customers will purchase approximately 77 million DVDs in 2009, which would account for approximately nine percent of the total DVDs sold this year. Of these purchases, an estimated 23 million will be the result of a customer trying the title at redbox first and then buying it at retail.
According to the survey, redbox customers buy the same amount of DVDs at retail as the average Blockbuster and Netflix customers, however 41 percent of redbox customers report they prefer to rent a movie at redbox before purchasing the DVD at retail. This conversion to purchase is approximately 10 percent higher among redbox customers than Netflix and Blockbuster renters and highlights the greater propensity of redbox customers to try a movie before buying.
According to an NPD survey of existing redbox customers conducted in November 2008, 20 percent of redbox rentals reflect customers who would not have purchased or rented DVDs before the introduction of redbox, but have come back to the industry because of the $1 per night price point and convenience. The same survey confirmed that 42 percent of redbox’s active customer base is now renting more DVDs than before redbox entered the industry.
“Redbox customers are passionate and active in both the rental and retail space,” said Mitch Lowe, chief operating officer, redbox. “As the company’s retail footprint and customer base continue to grow, so will redbox’s investment and positive impact on the DVD industry.”
On average, redbox reinvests a higher percentage of its revenue into the purchase of DVDs for rent than many leading brick-and-mortar services. Redbox is reinvesting financially in the DVD industry in addition to bringing lapsed renters back into the DVD equation while providing opportunities for active renters to rent even more.
Redbox has consistently increased its number of new kiosk installations upwards of 200 percent year over year, which has lead to added convenience and appeal for consumers as well as increased demand for the DVD industry.
About Redbox
Redbox Automated Retail, LLC offers all new release DVD rentals for $1 per night through its nationwide network of conveniently located, self-service kiosks. Redbox is available at more than 12,000 locations nationwide, including select McDonald’s® restaurants, leading grocery stores and Walmart, Walgreens and 7-Eleven stores in select markets.
Each fully automated redbox kiosk holds approximately 700 DVDs, representing up to 200 movie releases. Consumers simply use a touch screen to select their favorite movies, swipe a valid credit or debit card and go. The complete rental transaction takes only moments. Customers can keep the DVD for as long as they’d like for $1 per night plus tax, and return it to any one of redbox’s more than 12,000 locations nationwide. After 25 nights, rental charges cease and the DVD is the customer’s to keep. For added convenience, customers can also visit www.redbox.com to choose their DVD online and pick it up immediately at the redbox location of their choice.