Redbox’s near-ubiquitous rental kiosks more than pay for themselves within the first
few 24-36 months of deployment, according to Coinstar CEO Paul Davis. During remarks at the recent Jefferies & Co. Global Internet, Media & Telecom Conference, Davis said that Redbox kiosks typically cost about $15,000 to deploy, and usually earn roughly $50,000 within 90 days in the 3rd year of operation. [admin edit: note corrections made above]
Davis also repeated an earlier estimate that the American market could accommodate up to 60,000 DVD kiosks, which is more than double the number of Redboxes currently in operation. Said Davis:
“To date we’ve never retired a machine . . . We really have the capacity to do 1,000 kiosks a month. That’s not to say we will.”
Is 60,000 the magic number for Redbox? Should Davis adjust his thinking lower or higher? How big of a dent could NCR’s Blockbuster Express boxes put in Redbox’s ambitions?
(via Home Media Magazine)