You recognize the big red box outside your local grocery and drug stores or the McDonald’s in town. While you are running errands, you can arrange a quick, convenient night in for $1-$2, by stopping at a self-service dvd rental kiosk. Redbox Automated Retail, LLC, a subsidiary of Coinstar, Inc. has quickly become a powerhouse in the movie rental marketplace since their launch in 2002. Last year, Redbox celebrated 1 billion movie rentals with more than 27,000 redbox locations. Now, Redbox is looking to take a bite out of the video game retail space by offering game rentals at many of their locations.
Video game rentals have been available at a select 5,000 Redbox locations as part of a pilot program. Despite the limited availability, video games exceeded one million rentals in less than two years. As of June 17, 2011, Redbox began offering the game rental option to a wider audience, expanding the rentals to 21,000 more Redbox locations. Redbox kiosks offer a variety of game titles, including new releases and family kids titles, across all console platforms.
Whether you play on Microsoft Xbox 360, Nintendo Wii or Sony Playstation 3, the newest game release can quickly be rented online, via mobile app or on-site at a convenient Redbox location. Game titles will be available to rent for $2 per night with no required return date. As long as you keep the game, Redbox will continue to charge the daily rental fee plus tax. If the game is retained for more than 25 days, renters will be charged a one-time $50 fee and will own the game – no return needed.
Redbox has a few advantages over the competition:
The foremost advantage is convenience. One could argue that GameFly, the video game rental delivery service, also offers convenience. This is true. However, the idea consumers can act on on a spontaneous decision to play a game definitely works to Redbox’s advantage. Add accessibility via internet and app access and it does not get any easier.
Product placement is key. In this regard, Redbox is exceedingly intelligent. Placing kiosks in everyday locations such as McDonald’s locations and grocery stores is a huge positive, keeping the brand directly in front of consumers and presenting a quick, easy experience.
The option to try before you buy is also a big plus for Redbox. With popular new titles costing $39.99 to $59.99 or more, the ability to play the game before opening your wallet could itself bolster the appeal of Redbox game rentals.
Cash is king. Most new releases for Microsoft Xbox 360 or Sony Playstation 3 are priced at $59.99. Even with the one-time $50 charge (plus taxes) to keep the video game after 25 days of rental, you could save money.
Physical product. There is still something to be said for having the disc in your possession. Think of it as your gaming security blanket, or insurance against hard drive failure or a massive data breach. Sometimes it just feels good to know you have a disc.
Visit Redbox.com to find a game or your local Redbox location. You can also rent your movie or game on the website and mobile phone users can download the Redbox app for iPhone or Android.
Read the April 28, 2011 announcement from Redbox.