Movie rental kiosks on the rise

An article from The Dallas Morning News reports that Blockbuster plans to roll out 10,000 Blockbuster Express video machines nationwide by the end of the year. This move will put Blockbuster in direct competition with industry leader, Redbox, which currently operates more than 14,000 DVD rental kiosks at major chain stores. Blockbuster chief executive, Jim Keyes hopes that the business evolves into digital download kiosks rather than dispensing physical copies stored in the machine. Additionally, although Netflix posted positive profits for its first quarter, Netflix CEO Reed Hastings is concerned about the competition from kiosks. Hastings said that many customers cite the kiosks $1 a day new releases as their reason for canceling their subscriptions. However, new releases only account for one third of Netflix’s total rentals so kiosks can only compete to that extent for the time being.

Flexplay brings convenience to consumers with “No-Return DVD Rentals”

If you have recently shopped at a Staples store or a Hudson Newsstand at the airport you may have seen Flexplay’s “No-Return DVD Rentals”. Recently, Flexplay Entertainment began offering time-limited DVDs in airports, convenience stores and travel plazas. Flexplay’s strategy focuses on convenience and targets consumers who rarely rent or purchase DVD’s by reaching those consumers in places they already shop. In a posting on Flexplay’s website, Joe Fuller, Executive Vice President of Marketing explains,

“Nearly everyone has experienced the frustration of renting a DVD and returning it unwatched, or paying fees for late or lost discs, or not having any new movies to watch because the old ones were not sent back. Our mission is to provide a more convenient and efficient DVD rental experience that gives the customer complete flexibility.”

Flexplay’s DVDs offer the equivalent of a two-day movie rental without the need to return the DVD after viewing because it simply stops working. The customer is in control of the rental because the DVD is activated by the customer when the sealed package is opened not when the DVD is received. The DVD stops working two days after it is opened due to an adhesive in the DVD that oxidizes when exposed to air making the disc unreadable by a DVD player. For added convenience, the DVD’s can be recycled when they become unplayable and unopened DVD’s are designed to work for one year.

DVDs in the age of digital

An article from earlier in the month discusses the growing distribution of DVD dispensers in a variety of outlets. Kiosk dispensers are appearing in a range of retail outlets, from McDonald's to grocery stores. The focus, of course, is on convenience for the customer. Personally, the advantage to such devices come when we can deliver content beyond movies, and when the kiosk becomes internet-integrated, and supports formats beyond just DVDs. Such concepts might seem outdated, but retailers must consider how they add value and convience for customers, giving customers another reason to visit the physical establishment -- or the store's online equivalent.

What is your clicks-and-mortar strategy for delivering content and convenience?