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.
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.
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.