Redbox recently announced that it has passed the 500 million movie rental mark. In just a few short years, it has gone from a tiny upstart to one of the major players in the DVD rental industry.
In light of such a tremendous accomplishment, it seems appropriate to take a quick look back at Redbox’s history and share a few fun facts:
- Redbox began in 2002 as a joint venture between McDonald’s and Coinstar. 140 rebranded kiosks, operated by DVDPlay, were placed at McDonald’s restaraunts around the Denver area. Coinstar purchased full ownership of Redbox for $175 million in February of this year.
- In 2007, the number of Redbox kiosks passed the number of Blockbuster Video locations.
- Redbox reached 100 million DVD rentals in February of 2008.
- The DVDPlay machines were phased out in 2005 in favor of a new, custom-designed machine. These machines can hold more than 600 discs, and contain anywhere between 70 to 200 titles.
- The average Redbox DVD is rented 15 times during its lifespan in the machine. Used DVDs are returned to suppliers or sold at a reduced price from the kiosk.
- Redbox plans to have more than 20,000 kiosks in place by the end of 2009.
It took Redbox six years to reach 100 million rentals, and now it’s crossing the half-billion mark just 18 months later. What say you, Insiders—Facing increased hostility and intransigence from studios, can Redbox keep the momentum going? Is the one billion mark right around the corner?