May 21, 2009

DVD - Redbox Expands Circle K Deployments

MAY 20 | PHYSICAL: Redbox is adding more kiosks in Circle K convenience stores as part of its plan to boost its machine count by at least a third within the next eight months, the largest U.S. operator of movie-rental kiosks said today.

Redbox, which is owned by coin-exchange machine maker Coinstar, already has machines at Circle K stores in California, Arizona and Ohio. Redbox isn’t disclosing how many machines it has in Circle K stores, how many it will add or where they’ll be added. Circle K has more than 3,000 U.S. stores.

Redbox has led growth in the U.S. kiosk industry, which is expected to expand over the next few years as video store chains such as Blockbuster and Movie Gallery close underperforming stores. The company, which almost doubled its machine count last year, had 15,400 kiosks at the end of March and plans to have between 20,000 and 22,000 machines by the end of the year.

Coinstar said earlier this month that first-quarter sales from Redbox and the far-smaller DVDXpress brands jumped 156% to $154.7 million from $60.5 million a year earlier. Earnings, excluding some costs, for Coinstar’s DVD operations grew to $29.1 million, as Redbox boosted same-store sales by more than 30% from a year earlier and added 1,700 machines during the quarter.

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Posted by staff at May 21, 2009 07:15 AM