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Just some quick news on a press release put out by Redbox and Flextronics celebrating the production of 25,000 kiosks. Flextronics is the producer of the Redbox kiosks that we all know and love.

The question here is, how many more kiosks will Redbox deploy? 25,000 is quite a large number – will it get to 50,000? 100,000? Are they going to reach a point of saturation before that? Will streaming video put a dent in these deployments soon?

With strong competition from NCR, how much marketshare will Redbox give up to Blockbuster Express? How many more grocery and convenience stores are there that will get these machines? There is definitely a limited number.

These are all good questions, and no one knows the answers for sure. The entertainment industry has been evolving fast, and any company could step up at anytime. Will it be Blockbuster or Netflix? Will a newcomer come to the scene? Time will tell. For me, I put my bet on digital distribution – the question is who will do it best?

Full press release after the break…

OAKBROOK TERRACE, Ill. and SINGAPORE, May 6 /PRNewswire-FirstCall/ — In a ceremony held today at the Flextronics (Nasdaq: FLEX) facility in Creedmoor, North Carolina, Flextronics and redbox announced that they have reached production of 25,000 redbox® DVD rental kiosks, further highlighting the companies’ successful partnership and confirming Flextronics as the market leader in self-service manufacturing and supply chain solutions.

“This is an exciting day and we are delighted to host our key suppliers onsite at the Flextronics facility in celebration of our 25,000th kiosk,” said Mitch Lowe, president, redbox. “Flextronics is an important partner and their flexibility and responsiveness have greatly contributed to our ability to meet aggressive installation goals as demand for our low-cost DVD rental service has grown.”
“We are very proud to be a key partner toward helping redbox achieve today’s milestone in kiosk production,” said E.C. Sykes, President of Flextronics Industrial. “As the leading manufacturer of self-service kiosks, we are honored to have helped enable redbox’s success in achieving its objectives through our supply chain optimization, design support and lean manufacturing services.”

Each fully automated redbox kiosk holds 630 DVDs, representing up to 200 of the newest movie releases and allows consumers to simply use a touch screen to select their favorite movies, swipe a valid credit or debit card and go. For added convenience, consumers can also reserve DVDs online at www.redbox.com or via an iPhone® and pick them up at the redbox location of their choice.

About Redbox
Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (Nasdaq: CSTR), offers new release DVD rentals through its network of conveniently located, self-service kiosks. Redbox has rented over 750 million DVDs and is available at approximately 21,600 locations nationwide, including select McDonald’s restaurants, leading grocery and convenience stores, and Walmart and Walgreens locations in select markets. For more information, visit www.redbox.com.

About Flextronics
Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics is a leading Electronics Manufacturing Services (EMS) provider focused on delivering complete design, engineering and manufacturing services to automotive, computing, consumer, industrial, infrastructure, medical and mobile OEMs. Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in 30 countries on four continents. This global presence provides design and engineering solutions that are combined with core electronics manufacturing and logistics services, and vertically integrated with components technologies, to optimize customer operations by lowering costs and reducing time to market. For more information, please visit www.flextronics.com.

SOURCE Flextronics

9 Responses to “Redbox Reaches 25,000 Kiosk Milestone, How Many More Will There Be?”

  1. Member [Join Now]
    WalkForLiberty.com [walkforliberty.com]

    I would agree with you that digital distribution is the future *if* the studios wise up and stop charging ridiculous licensing fees for their digital content. Until digital rentals drop to about $1 per rental with similar quality to DVD, I’ll stick with Redbox most of the time.

  2. Visitor [Join Now]
    rb [visitor]

    I thought I read somewhere that Redbox had a goal of 40,000 kiosks…..I have around 10 Redbox kiosks within 2 miles of me so that’s plenty to keep me satisfied :-) Other bloggers have stated they aren’t so fortunate and maybe only have 1 or 2 redbox kiosks within like 10 miles–so I guess there is always a need for more, more, more….However, I also think the move is toward digital BUT I also think people will still want the ‘physical’ media/dvd. It’s like being able to hold a paper photo in your hand or looking at them in a family scrapbook as opposed to viewing on one of those digital photo frames. The memories just seem more special when you have the ‘physical’ photo to look at… For this reason, I think Redbox should start thinking about taking their kiosks one step beyond….Like I suggested before, maybe make a kiosk that can also produce an inexpensive (say $5) made-to-order dvd, in a case, with a photo copy of the movie cover. A Redbox customer would order online the physical copy of the movie they want and at what local kiosk, prepay via credit/debit card, and then the kiosk machine would make the copy of the movie and make it available for pick up within a certain amount of time… The quality wouldn’t be as good as a store bought dvd BUT this would serve a purpose for those who just like to have an inexpensive physical copy on hand.

  3. Visitor [Join Now]
    john sfrengeu [visitor]

    I have over 10 Redbox within a few miles from my house…and finally yesterday the had a blockbuster express 4 miles from my house ( the next closest one is over 50 miles). I drove there and rented “its complicated” and it was jest like Redbox (except i dont like the sleeve design) . I hope they put more blockbuster express closer because have a more movies. For example “leap year” is at BBI and ill rent that next and “dear john” is out of stock but will get it as soon s it s available, also they gave me a free promo code for signing up.

    • Visitor [Join Now]
      rb [visitor]

      I’m still waiting for a BBExpress to be within 1 or 2 miles of me…The closest is like 10 miles :-( Eager to see which little gems they might have available…I still want/haven’t seen 500 Days of Summer which I think BBExpress carries….

    • Visitor [Join Now]
      RJ [visitor]

      The sleeves on BB Express seems to increase the likelihood of the disc getting scratched. I got “It’s Complicated” about a week ago and there were a lot of scratches. It still played with no problems, though.

      I’ve got one BB Express within 5 miles of me currently and 6 Redboxes within the same radius.

  4. Member [Join Now]
    tlochner

    what is redbox gonna do when blue has 50000 kiosks? cant wait to find out.
    when will blu-ray really hit the any of these boxes? will 3d really be that good to justify another $5k investment in new equipment? when will 3d disks be in a kiosk? yeh lots of questions. when will redbox raise it prices because when they stop adding kiosks where will they get their growth??? margins suck you know!
    coinstar ceo is just trying to cash in on this kiosk craze, everyone else in video distribution is getting slammed except netflix. thats because netflix is already priced at below kiosk prices. $.70 a movie and they they have bluray and they have older titles.

    i watch a TON of movies. the only reason to use blue or red vs. netflix is if you dont watch a lot of movies OR YOU can get it for FREE! <<<< .70 there is no .50 or .20 only FREE or netflix wins! that is why i use FREE codes.

  5. Member [Join Now]
    alans613

    The Bluebox gets the Redbox “embargoed” titles on the street date, so for those i’ll go to the Bluebox. For the rest, i’ll go to the Redbox. The downside to the Blueboxes though are that they only carry one copy of each title. They need more copies of movies or it will end up pissing off people that are trying to rent the newer releases. Also the touchscreens on the Blueboxes aren’t as user-friendly or quick responding as the Redbox screens are.

    • Member [Join Now]
      starfire008

      The downside to BBExpress:

      1) Limited locations (Only 1 in my area).
      2) Limited depth of movie at machine

      The upside of BBExpress:

      1) Rent with promo codes online
      2) Promo codes more readily available (but starting to dry up).

      Which way to go? Well I tried to rent the Blind Side for over a month with BBExpress before it became available at redbox at which time I got it immediately. Strike 1 BBXepress. Then I try the same thing with Avatar, Crazy Heart, Sherlock Holmes. Same thing again. Strike 2 BBXepress. OK, so now I try TLochner’s approach and try reserving online first. At first I think it’s going to work, I get in, find my movie (Crazy Heart) and apply the promo code. Then I try to check out and a popup informs me that the movie is no longer available at the location I selected. Strike 3 BBXepress – Your outta there, clown.

      See the problem? You have to work too hard to find/get your movie at BBExpress. The only chance you have is reserving online and even then, you might have to try multiple days before you can get your movie. Is it really worth it? Maybe to a coupon clipper, but most people are going to say, I’ll just pay the damn dollar! It’s too hard to get the free movies at BBExpress unless you want some old picked over crap. Sorry TLochner – you can keep on singing the praises of BBExpress and slamming redbox but the truth is that for many of us, BBExpress does not work.