Redbox, which added 2,700 kiosks to its network this past quarter, has not included its airport channel in this rapid expansion. According to Video Business, Redbox has only installed five kiosks at U.S. airports since September of this year. The company had previously installed two kiosks at Nashville International Airport in 2008.
Redbox hasn’t revealed its future plans for airport development, nor will it discuss its reasoning for its slow airport expansion, which contrasts greatly with the company’s aggressive expansion in other channels.
Redbox obviously has their reasons for taking things slow, but at first glance this airport reticence might seem like a missed opportunity. A large installed base of kiosks at airports around the country could provide a healthy revenue stream of impulse rentals from travelers seeking in-flight entertainment who would then return the discs at their destination airport. Perhaps restrictions have been placed on Redbox by airlines/airports that don’t want the rented discs cannibalizing sales/rentals of other in-flight entertainment options. With cross-country flights only taking a few hours, it’s also possible that Redbox foresees few customers keeping discs for the two rental periods the company is accustomed to.
Over to you, Insiders. Why do you think that Redbox is slowly taxiing down the runway when it comes to increasing its airport kiosk network?
[via Video Business]