Redbox DVD rentals expanding rapidly
It's becoming easier and cheaper to rent a movie.
Redbox, which offers DVD rental kiosks that dispense new releases for $1 a night, now has more U.S. retail locations than Blockbuster.
There are more than 6,000 of the automated kiosks available, up 25 percent from September. Locally, the machines are mostly located at Jewel and Walgreens and some Wal-Mart stores.
McDonald's Corp. and Coinstar Inc. co-own Redbox, based in Oakbrook Terrace.
The concept has grown quickly. Launching only 12 prototype locations in 2002, Redbox boasts convenience. There are about 276 locations in the Chicago area.
Each kiosk holds more than 500 DVDs, representing between 100 to 150 of the newest movie releases with new titles available every Tuesday.
Some area Jewel Redbox kiosks are renting more than 1,000 DVDs a week.
To compete, Blockbuster launched its own online rental program, Total Access, about a year ago. At the end of the first quarter, more than 3 million subscribers signed on. Blockbuster, which charges about $4 for a new release at its stores, has tested the vending machine concept.
The Redbox concept is simple. There is no need to fill out a registration. All the user needs is a credit or debit card while using a touch-screen video monitor. The DVD emerges from a slot, packed in a plastic case. It can be returned to any Redbox location.
The transaction takes about a minute. Customers can keep the movie for as long as they'd like for $1 per night plus tax.
In October, the company made another change in allowing customers to keep their movie until 9 p.m. instead of 7 p.m.