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NewTeeVeeLivelogoGary 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 Statistics

  • 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.”

[via NewTeeVee]

7 Responses to “Redbox Marketing Chief: We Knew We’d be a Disruptor”

  1. Visitor [Join Now]
    Jonathan [visitor]

    Even though I wish some of that money were coming my way, I’m glad for RedBox. Very cool to see those stats. Glad to see a business model that favors the consumer while still getting profits to pay the bills.

    • Visitor [Join Now]
      John Small [visitor]

      Except that the profits are shrinking because their costs are rising.

      I do have hopes for the company though if they raise their rates to $2.00 for the first day and $1.00 for each additional day.

      That would make economic sense for them and reduce their costs by getting the recalcitrant studios back on board.

      $1.00 a night rentals make no economic sense for Redbox.

      • Visitor [Join Now]
        Bill Mc Andrew [visitor]

        Redbox opened the door for cheap movie rentials. Now mom & pop movie rentials are under cutting Redbox. NITE CAP VIDEO, KULPMONT, .75 a movie per night, but you must rent 2 . Thats 2 movies for $1.50 !! DO THE MATH. Redbox is getting GREEDY

        • Visitor [Join Now]
          Aaron ward [visitor]

          Mom & Pop will be going out of business within a year unless they have something else they can sell. That’s nowhere near enough money coming in to cover the overhead of having a physical store with monthly rent due.

      • Visitor [Join Now]
        Jody [visitor]

        well hate to tell ya, but my local Family Video is now cheaper than Redbox. The only reason I still just go to Redbox is the convenience – they are everywhere!