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Issue Date: Vol. 49, No.1, January 2009, Posted On: 1/13/2009

7-Eleven Rolls Out Redbox DVD Rental Kiosks Nationwide

Emily Jed

DALLAS — Following a pilot launch of Redbox DVD venders at select 7-Eleven stores in Orlando, FL, and Reno, NV, the convenience store chain announced it has agreed to roll out the kiosks to approximately half of its U.S. stores nationwide by yearend.

Redbox is the most recent addition to 7-Eleven’s push to become an entertainment destination. Late last year, the convenience store chain began offering videogames, prepaid game cards and DVDs for purchase at participating stores.

The new agreement makes 7-Eleven one of Redbox’s largest retail partners, and will increase its current installed location base by more than 15% in 2009, according to officials. Redbox kiosks will primarily be located outside participating 7-Eleven stores, providing customers 24-hour access to DVD rentals.

“This is another example of 7-Eleven’s move to be more relevant to consumers seeking affordable entertainment,” said Kevin Elliott, 7-Eleven senior vice-president of merchandising, marketing and logistics. “Redbox is yet another convenience 7-Eleven can offer customers and one that will not only save them time, but money.”

Later this month, 7-Eleven will promote the service by posting signs at stores on gasoline pumps, windows and poles. It will cross-promote with Redbox, which will market the partnership through grassroots efforts including email and text messages notifying local customers when Redbox comes to 7-Eleven stores in their communities.

Each fully automated Redbox kiosk holds approximately 700 DVDs, representing up to 200 different new-release movie titles. Consumers use a touchscreen to select their favorite movies and pay with a credit or debit card. Customers can keep the DVD for as long as they like for $1 per night plus tax, and return it to any of the more than 12,000 Redbox locations nationwide. After 25 nights, rental charges cease and the DVD is the customer’s to keep. Customers may also visit redbox.com to choose their DVD online and pick it up immediately at the Redbox location of their choice.

Redbox, majority owned by Coinstar Inc., is the largest provider of DVD rental kiosks, with more than 12,000 locations nationwide. Dallas-based 7-Eleven operates, franchises and licenses approximately 7,600 stores in North America. There are more than 35,000 7-Eleven stores worldwide in 17 countries.

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