Redbox was in the news earlier today after Coinstar, the company that owns the DVD rental service, announced that they would be partnering with Verizon to create their very own online video streaming service.
Now, they look to expand the traditional service a bit farther. NCR owns thousands of kiosks such as ATM machines and point of sale terminals. It’s said that they were acquired for as much as $100 Million. This opens up their distribution quite a bit, that is after they figure out how to integrate with their kiosks and then push those changes out there which could take a while to do.
“The two-fold announcement today indicates Redbox and Coinstar are far from leaving the kiosk business. Though many interpreted its partnership with Verizon as an indication of the company’s digital future, the acquisition indicates that Redbox has doubled down on its efforts and fortified its position in the kiosk business.”
“While some may have thought that physical was done, we think there is a bright future in physical,” J. Scott Di Valerio, CFO of Coinstar and interim CEO of Redbox, tells Fast Company. “We don’t think physical is going away for three, four, five, seven, ten years. Physical is going to be around for quite sometime, and we believe we can leverage that marketplace.”
And leverage it they will. With the access to thousands of more kiosks, this dramatically increases their market and the ability to get DVD’s and even video games, into the hands of more people.
Have you ever rented any movies or games from Redbox before?