Ever wish that the large selection and brick-and-mortar browsing experience of Blockbuster or Movie Gallery could be combined with the convenience and price point of Redbox? If so, there’s a new Southern California rental chain that’s right up your alley. MovieQ recently opened two locations in Orange County that are manned by only one employee and feature eight self-serve kiosks that enable customers to browse and rent movies and video games.
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DVDs at MovieQ cost $1 per day, with Blu-ray discs costing $1.50 and video games between $1 and $2 per day. The chain’s locations offer a selection of about 10,000 movies and game titles. MovieQ also offers popcorn, snacks, etc. at its stores, and has several TV screens constantly showing movies. Several hundred empty movie and game cases complete the brick-and-mortar browsing experience.
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Is there room in the evolving home video market for a hybrid chain like MovieQ, Insiders? Have any of you OC residents patronized this chain, and if so, what did you think?
(via The OC Register)
Doomed.
I have to agree with JS on this one. I really don’t see the point of a hybrid-kiosk store.
I don’t know, I think it’s a good idea or at least worth trying in certain areas. Doesn’t Redbox have to pay grocery stores or wherever their kiosks are located now rent for the space they are located. So, if Redbox combined say 10 or 12 kiosks in one place/space it might average out to less rental space costs while offering a larger selection of movies. Also, not sure how many kiosks a Redbox service person manages right now, but if it is around 12 daily than this would also keep cost reasonable as far as employee costs. Plus, Redbox wouldn’t have to pay travel cost/maintenace van costs for the Redbox service person traveling to 12 different kiosks…Plus, Redbox customer wouldn’t have to worry about traveling to a kiosk only to discover it’s under maintenance, the kiosk is full and they can’t return a dvd etc. and have to travel to another kiosk. It’s something for Redbox to think about to keep up with the ever-changing needs of their customers…
A lot of Brick ‘n Mortar stores are already being manned by only one person. The only difference is that now you have a lot of expensive kiosks to maintain. I guess someone is looking for a few suckers, er, I mean investors.
I think their odds of success exceed those of BBI’s.
no way you have an opinion on this to. I’m shocked!! I’ll bet the owners and investors will sleep better at night knowing you’ve given them your stamp of approval. God you are such a douchebag!!!
Seriously now, did your parents not pay your World of Warcraft subscription this month or something?
Bitter much?
Sounds very plausible, 35-40k per machine x 5 + rent + payroll = not a chance.
Oh yea, and ya still gotta buy the movies every week and all the old ones for the selection thing. FLON – maybe equal to BB. Comments welcome!!!
The part that I like is that it can survive off much less revenue. Better selection than Redbox. The bad: still an extra trip for consumers, I think it’ll need more labor than expected and it’s not going to be in the best locations like Redbox.
WOW!!!! The first step is to admit you have a problem. I can’t believe how much you really do post.. It really is everyday. Does it make you feel important or something? I thought at first the guy harassing you was going over board but you really do post to much.
You do comment to much GO AWAY!!!!
So it’s like this theres a store you go into the size of a small class room on one side theres about 6 touch screens you can use to look at to get your movies then you just need a credit card just like redbox… well like 10 redboxes put together… itss kinda slow tho.
It’s a Video store but instead of shelves with movies and physical boxes you can touch it has a bunch of kiosk.
they have a movieq cash card you dont need a credit card or debit card check out the website i did yes i would rent from them
Really, I think were kind of missing the point here people, it’s not the concept that’s that I disagree with (per say), it’s the cost. In this environment you just can’t do the volume necessary to service the initial investment, much less the on going costs. Margins these days in this overly competitive arena leave very little room for profit much less paying down $200,000+ worth of capitalization. Now if they could get $3 plus per rental and had 10 years plus to recoup maybe, but that’s not gonna happen. And BTW it’s not about being Mr. negative on this one, it’s just a matter of being realistic.
How is this different from a video store???????????
lol there is none.
this might of worked say 5 years ago but i doubt you will see any b*m or even vending machines around in 5 years (everything will be downloaded either over the net or though your cable provider)
already heard a rumor comcast is thinking of doing a VOD package (where you pay a flat fee for all of the ppv movies per month)
put in a chip that keeps people from recording the VOD movies the studios would have pure profit with no DVD cost no box cost no ad cost ect ect ect..
would be a win win… BUT would hate to see the price per month to get it (probally at least 4o to 60 per month)
I think it is a good idea, I would like to see one in my town…. I’m not really concerned about how much they make, I would just like to rent blueray movies and games from a kiosk at a cheap price. I think it would be pretty sweet!
too bad you couldnt find a company to give you a machine and take like 70% of the profits … i love to own on of these machines and stock is with video games… i already own almost 200 ds games and 150 psp games not to mention the gamecube, ps2, ps3 and wii xbox 360 games i have just sitting around :)
even at 2 bucks per night a 30 k machine would take 15,000 rentals not counting rental for the place its at.. say you have 10 games rented per day
(and this is even without buying new stock) it would take 1500 days to break even or almost 5 years OUCH
This only makes sense if there are movieq kiosks around town so that you can easily return a movie without the need to specifically go to a movieq store.
My thought was this would be good/make sense to have say one per community, in addition to keeping all the convenient local kiosks at grocery stores, etc. It would carry a HUGE selection of say indies, classics, games, foreign movies, children movies, odd movies , etc. that you can’t get other where for a LOW rental price without signing a subscription–even ones that would never be available at the library because of their content (not talking porn, thinking more of foreign horror films). Much of the stock would stay the same/be available for a long time to keep costs down. To keep these dvds at this one specific location so they continue to be available only there, would have to change the design of the kiosks, case size, or barcode label. etc. of the dvds for these kiosks so that these dvds can only be returned at this one location. Again, this would be one multi-kiosks per community for those customers who desire a huge choice of dvds for a LOW rental price and, therefore, renting AND returning to this one location in their community makes sense for them…I’m thinking it would be like one of those self- laundermat where you have many washers/dryers with customers using them but only one employee to man the store.
RB, problem is the investment, the titles that you speak of only rent out a few times here and there if your lucky. To pay $12-20 per movie that may only rent out 5 times a year is a loosing proposition. You also have to take into consideration, damages, and non-returned movies. You may think that it would be easy to simply charge the customers for this however when you go to run the credit card for these type of customers they generally don’t go thru (i.e. declined), or they contest the charge. Additionally 10% + of those movies get scratched up to the point where they need to be replaced and they may have not even paid for themselves yet. The ONLY reason Redbox works (debatable), is because the movies they carry are in such huge demand (brand new releases). These type of movies are only profitable to a company like Netflix because of their enormous customer base.
redbox doesnt work! look at earnings / revenue. with such low margins
it is obviously going to fail at some point.
great concept … better box design than blue … but blue gives out free movies every day and you can rent with promo code online.
cant beat that. machines are a bit slower but what the heck.
blockbuster was a rip off! that opened the door to new ideas.
so we have experimental kiosks everywhere. we shall see what the future brings.
I’ve been wondering how redbox actually makes any profit. They have to get their discs at an extremely low rate to make any money back. With new titles being dumped out every week and no selection of “classic” movies they have to rent the new dvds at least once a day for 12 days straight before they just get their purchase price back. Do they charge sales tax on rentals? I’m sure they have employee costs and rental space for the units not to mention utilities and web services and credit card processing whittles their revenue down even more. I’ve never used a reboc and go to a little video store across the street. I like talking about movies and looking at the covers and supporting a local business. I’ve driven by people standing at the RB outside the local grocery store in freezing cold weather, pouring rain, extreme heat and humidity and even nice days but you never see them smiling. They always look like their ticked off because someone is taking their time making a selection. And I’ve even heard multiple people claim to not want to go back to the RB because of the condition of their discs. Seems like a great price for consumers but must be a really tuff way to make money.
DVDstoreguy, look back there has been many an arguement here about this subject, what it comes down to is that RB is doing what they do at a break even so they could put the remaining video stores out of business, after that was accomplished they would simply adjust their fees to a profitable level ($2 – $2.50) and enjoy being the only real player in the industry (with the exception of netflix).
So you think the whole redbox movement to this point is to put the brick and mortar store out of business? I still don’t see how they even break even. And they are a publicly owned company. What do you think they pay for each disc? The only thing keeping my video store going is the old titles and tv series.
No, it’s not the primary objective, just a part of the equation. There are no new brick & mortar stores going up (except Family Video), especially if there is a redbox in the vicinity. It only takes a relatively small percentage (25%) of loss from a redbox kiosk that is close by to make the video store not worth keeping open. Once the B&M stores are gone (which they probably will be in the next 2-5 years), it just becomes a number crunch to see what the new (kiosk) arena will bear. Sad part is that there will no longer even be an option just mail and automated kiosk for dvd’s. Only video stores that know how to keep their price at or less than $2 have any chance (even with the 28 day window). Just my humble opinion….
Don’t worry dvdstoreguy,…If you can’t keep your video store going due to the popularity of Redbox, maybe you can look into opening a comic book store. I remember someone saying one can make a tidy little retirement sum selling comic books. :-)
Yikes! Don’t tell him to open a comic book store. That’s the wrong way to do things.
The proper way to make a fortune is to look in the paper for men of the right age who have passed away and then to approach their widows and tell them you will take those worthless old comics in the attic away for them for a song and a cup of tea.
Modern day comics simply do not have the collectibility factor that those old boxes of gold do.
Sounds dopey. Probably only fit for California consumption.