Redbox’s top competitor in the dvd rental kiosk space, DVDPlay, has just announced that they will start stocking BluRay movies in their kiosks starting in June.
BluRay disc is Sony’s high-definition (HD) replacement for standard DVDs. You must have a BluRay player (like Sony’s PS3) to view these movies.
Is this going to give DVDPlay a leg up on Redbox? Do you think that Redbox should start stocking HD movies in their kiosks as well?
VideoBusiness is reporting that Redbox has hired ex-JetBlue CFO John Harvey as their financial chief.
Redbox CEO Gregg Kaplan had this to say about Harvey:
“Harvey brings to Redbox a proven track record of growing companies, extensive leadership experience and strategic financial skills. We will rely on Harvey to lead our financial team and support our corporate growth strategy.”
Harvey helped grow JetBlue Airlines into a successful new airline, one of the few in recent years. Will he bring the same kind of results to Redbox?
Redbox plans to file for their IPO by the end of June, and also plans to have 11,000 kiosks in operation by the end of the year, thanks to their recent deals with Wal-mart and Walgreens.
It seems that Redbox is well on their way to success, the question is will they get bought out by a larger player in the near future? Perhaps that is in their strategy, too.
Redbox has issued a press release telling of their intention to file an IPO. They will file their registration statement sometime this quarter, 2Q08.
Text from the press release as follows:
OAKBROOK TERRACE, Ill.–(BUSINESS WIRE)–Redbox Automated Retail, LLC, which provides a fully automated DVD rental system featuring new release rentals for $1 per night, today announced that it intends to file a registration statement for an initial public offering of common stock, subject to market conditions. Redbox expects to file the registration statement with the Securities and Exchange Commission during the second quarter of 2008.
So, do you think Redbox will be successful with this move? Will you buy Redbox stock?
Today there was a new comment added to our previous coverage of the stuff going on in Kansas dealing with Redbox and R-rated movies in the kiosk. I found it interesting enough to warrant its own post, and possibly warranting further discussion.
There has actually been further action regarding this issue recently from other government bodies in the midwest that I had been meaning to post about, but never got around to it. You can read more about it at selfserviceworld.
Anyway, here is the comment made by Jon, as well as my response…
First of all the guy who is bringing up this issue does not own a video store he runs a buying group for independents not some corporate machine. Secondly any child can get a visa/matercard gift card given to them and use it in a redbox. Thirdly video store owners have an extra layer of protection for parents by enforcing the MPAA’s volentary ratings system, they are in ways custodians of the content for children. They ask age, ask for id’s and they don’t rent inappropriate material to children. If you all remember cigarette machines when we were all kids they to had stickers on them saying you had to be 18 to buy, did that stop any of us? NO!!!. Alls that did was made me buy 2 packs in case I couldn’t get back. Go figure that you’d get a one-sided arguement on a site that promotes Red-box. Mcdonalds does market to children with thier happy meals and playlands so why is there box art promoting riske material on it right in the front foyers of the McDonalds? Another thing is alls a child has to do to rent an inappropriate title is press one button that says I am 18yrs old, How hard is that for a child? There is not that extra layer of protection of a human being actually making sure of the age. One last thing is checkcards work in these machines as well and last I checked how old do you have to be to have a checking account 12?
My response to Jon:
“This is not a competition issue,” said VBG president Ted Engen, who also runs the 71-store Total Entertainment Center chain.@Jon:
The article specifically said that he runs 71 video stores? You don’t think that is a conflict of interest?
Listen, I think it is important to protect our children from things that we don’t find inappropriate, but that is my job as a parent, not someone else’s job to force their silly ideas on me or family.
BTW, this site does not “promote” Redbox, it is “about” Redbox. Personally, I do not watch R-rated movies at all, and I plan to teach my children to do the same. So, I certainly have no agenda here.
Really though, Jon, it seems to me that you are the one with the one-sided argument. Perhaps that stems from you being related to Mr. Ted Engen? Maybe you should disclose this if you are going to come and make an argument on someone else’s website. Nice try, though.
With regards to your “point”, I simply do not think we need the government or any other silly “interest groups” adding more censorship and more regulations to our already over-regulated society.
Let us take responsibility for our own families and our own actions. I simply do not need - or want - you or anyone else doing that for me.
Was my response off-base? Do you have anymore thoughts on this issue?
Chris over at the NewTeeVee blog wrote an interesting post about the scenario of Blockbuster buying Redbox. Here is an excerpt:
Blockbuster needs to do something to juice up its business because Netflix is eating its lunch. But getting into the hardware game will be an expensive endeavor, especially in an increasingly crowded field already packed with big names like Apple, TiVo, Xbox 360, Vudu and soon the Netflix LG box.
…
Finally, by leveraging the existing Redbox kiosks in non-video locations like grocery stores, Blockbuster could take advantage of impulse renting. People are already used to the idea of DVDs being sold in supermarkets, this would nudge them a little further and into downloads.
While an interesting idea, I don’t think its going to happen. I left a comment there, and agreed with frequent Inside Redbox commentor Davis Freeberg: Blockbuster cannot afford Redbox.
Redbox is too valuable right now and already has more locations than Blockbuster. While the rent-by-kiosk space is still relatively new, it is gaining a lot of users for its convenience and low prices.
Redbox just needs a new website that is easier to use and more “web 2.0″, and they will likely be unstoppable. If anyone from Redbox corporate is listening - I know what you need to do, and am happy to share that with you, if you are interested.
In any case, what do you think: Should Blockbuster buy Redbox? Should Redbox let them?
I personally think there is a better combination, and I will post about that soon…
I just received this notice from Redbox and wanted to get it out ASAP:
A few days ago redbox detected and removed an illegal credit card skimming device at one of our 7,400 locations. At the same time, redbox also discovered evidence of skimming attempts in two other locations. Skimming involves the placement of an illegal device above the credit/debit card reader on a vending machine, ATM, or in this case a redbox. These devices are used to illegally read or store personal credit card information. Redbox is not aware of any fraudulent activity or transactions using our customers’ accounts and does all it can to minimize the risk of this happening.
…
Although there is no evidence currently that these skimming attempts were successful, consumer security is a top priority for redbox. Reviewing transaction records, there is a possibility that up to 150 customers may have been affected. Although only a small percentage of the millions of customers who use redbox each month, redbox has notified the major credit card companies so that they can monitor the situation. The redbox team is also working with local authorities to investigate the incidents and ensure your security.
If you suspect this has happened at your location, please contact Redbox immediately by calling 1-866-REDBOX3.
You can read the full alert here, including answers to FAQs about credit card skimming and photos of the illegal credit card skimming devices.
As Redbox said, this is a concern they are aware of and there is likely no reason for alarm from any of us, but its always good to be informed.
If you want to make sure your credit is safe, you can take a look at your detailed credit report for free and be sure you were not affected by this.
So, has anyone ever seen this before?
Some users have been reporting today that there is a new option in their Redbox kiosk: 9mm handguns.
An Inside Redbox community member shares the following:
I was just reading a story coming out of Belleville, IL that brings up this question…
The Belleville News-Democrat reports:
An armed gunman tried to rob a 20-year-old woman early Monday at the McDonald’s near the Belle Clair Fairgrounds in Belleville.
The woman told Belleville police that she was at the Red Box DVD rental in front of McDonald’s, 125 South Belt East, shortly after midnight when a man approached her and demanded money. When she told him she didn’t have any money, the man drew a handgun and pointed it at her, telling her she had to give him something, according to the police report.
Does anyone else feel unsafe when renting from a Redbox in their area? If so, what do you think can be done about it?
The time finally came to update the look of Inside Redbox…
I will be making changes over the next little while as I add in some new graphics and tweak things here and there.
If you have any suggestions, or run into any problems, please comment here and I will take a look.
So, what do you think?
[edit: I realize the site is a bit slow at times. We should have it on a new server by the end of March, and that should fix the slowness. Thanks!]
According to an article on Video Business, a small town south of Wichita is “just saying no” to R-rated movies in their Redbox kiosks…
From the article:
A McDonald’s restaurant in Anthony, Kan., removed the R-rated movies from its Redbox kiosk after a local independent video store owner raised the issue during a Feb. 18 board of commissioners meeting, according to meeting minutes posted on the town’s Web site.
[...]
Video Buyers Group, which represents about 1,800 independent rental stores, is contacting city councils and independent retailers in some Kansas, Indiana, Colorado and Minnesota communities to pressure Redbox retail partners McDonald’s and Wal-Mart to take R-rated movies out of its kiosks.
“This is not a competition issue,” said VBG president Ted Engen, who also runs the 71-store Total Entertainment Center chain. “McDonald’s’ bread and butter is kids’ meals, and they have R-rated movies there, with no policing at all. We might as well put beer in soda machines.”
My favorite part is right there at the end: We might as well put beer in soda machines. While I agree that we should do the best we can to protect our families from things we find inappropriate, comparing R-rated movies to underage drinking might be a bit of stretch.
So, what do you think? Is this a valid concern, or is this going a bit too far in the name of protecting the little ones?
