Gary Cohen, SVP of Marketing and Customer Experience at Redbox, was recently interviewed at the NewTeeVee Live ’09 conference. During the course of the interview, which can be found in its entirety here, Cohen made some interesting comments about Redbox’s impact on the home entertainment market, where the company is today and what it has planned for the future. Here are some highlights (some comments have been paraphrased for brevity or clarity):
- Redbox rents 1600 discs per minute from its kiosks.
- 25% of Redbox customers rent titles at one box and return at another.
- The market with the highest concentration of Redbox kiosks is Salt Lake City, with one kiosk per 3000 residents.
- The company set a rental record last Saturday, November 7, with 1.8 million disc rentals in one day.
- Redbox kiosks and their accompanying displays make 200 million impressions a week in their retail locations.
Cohen on Redbox’s Impact on the Home Video Market
“We’ve added an enormous amount of efficiency to an inefficient market. . . When we first formed our business model, we knew we’d be a disruptor.”
Cohen on Redbox’s Current Testing of Multiple Pricing Models
“Every company should know what their price elasticity is.”
Cohen on Redbox’s Impact on DVD Sell-Through
“We’ve done many studies on DVD sell-through where you have a Redbox at a location of a major retailer, and another location without one. and the difference in sell-through is less than 1%—it’s just negligible. . . We’ve come to the conclusion that people buy when they want to buy and rent when they want to rent.”
Cohen on the Longevity of the DVD format
“We listen to our customers, and so far they are very comfortable with the DVD. . . We are testing a lot of different things: Blu-ray and digital. . . When the customers are ready to make a move, we’ll be right there with them. . . The DVD format has long legs, and we see it coexisting with digital for a long time.”