Issue Date: Vol. 51, No. 5, May 2011, Posted On: 5/3/2011
Redbox Venders Will Begin Videogame Rentals In June
video game rental, Coinstar Inc., Redbox, DVD vending machines, video game rental machine, vending, vending machine, vending machine business, self-service kiosk, automated retailing
BELLEVUE, WA -- Coinstar Inc. said it will begin renting videogames for consumer consoles through 21,000 Redbox DVD vending machines, about 64% of its installed base, starting in June. Redbox will stock games for Sony's PlayStation, Nintendo's Wii and Microsoft's Xbox, renting them for $2 a day.
Coinstar tested videogame rentals in 5,000 machines between August 2009 and the end of 2010 and reported one million vended game rentals during that period. Coinstar officials said about 64% of Americans own videogame consoles.
Coinstar also said Redbox DVD rentals' net income for the quarter ended March 31 surged 32% to $8.5 million. DVD revenues were higher than expected since the company has been negatively impacted by delayed DVD releases for rentals and by rising DVD prices. | SEE STORY
Coinstar Inc. (Nasdaq: CSTR) is a leading provider of automated service solutions for retailers. Its core products are Redbox self-service DVD rentals and Coinstar brand self-service coin-counters. The company says it operates approximately 49,000 machines -- 31,800 DVD and 18,800 coin-counting kiosks -- deployed in supermarkets, drugstores, mass merchant stores, financial institutions, convenience stores and restaurants.