The DVD rental kiosk industry has been receiving some extremely positive press in the last few weeks.  The worlds leading manufacturer of ATM kioskss, NCR, recently revealed their plans for the growth of development of their DVD rental kiosk business opportunity.  In an interview with Reuters, Chief Executive Bill Nuti revealed some details of their growth plan…

NCR Corp, which is known for its automated teller machines (ATMs), is aiming to make a business selling self-service DVD kiosks as recession saps demand for its bread-and-butter products. The company recently joined hands with DVD rental company Blockbuster Inc and expects to provide about 10,000 DVD rental kiosk units by the end of next year.

“Over the long term, in about 10 years, entertainment has the potential to become as big as finance or retail verticals,” said Chief Executive Bill Nuti. DVD rental kiosks are coming up fast in American neighborhoods as customers find them more convenient and movie rental companies look to cut fixed costs of running retail stores.

No.1 U.S. DVD rental company NetFlix Inc (NFLX.O) cited the growing popularity of kiosks as a reason for its weak outlook when it reported its latest quarterly results in April.  NCR, which is also foraying into other verticals like healthcare and public sector, expects its entertainment vertical to become a $1 billion business five years from now.  Of the company’s overall revenue of $5.3 billion at the end of 2008, analysts say the financial segment, which includes ATMs, accounts for more than half and retail self-service kiosks about 40 percent.

CEO Nuti forecast rapid near-term growth in the entertainment vertical, and said he expects it to become a “meaningful and noticeable” part of the business by 2011.  “We’ve seen tremendous shift in terms of consumers’ rental behavior moving out of the store to DVD rental kiosks, and that number is forecasted to triple between now and 2011,” CEO Nuti said.  He added that he saw similar behavior and dynamics in parts of Western Europe, Asia-Pacific and Australia-New Zealand.  Wedbush Morgan Analyst Gil Luria expects the entertainment segment to add a lot in terms of revenue for NCR, but said the $1 billion goal was a little ambitious.

“That business (entertainment) has a very high risk of not delivering the profits that the company is expecting,” said Luria.  Thomas Weisel Partners analyst Ajit Pai said, “As a third vertical, its still important.” Pai, however, said he was not sure if it was the best vertical to be targeting.

BLOCKBUSTER DEAL “FILLED IN GAPS”

NCR entered the entertainment market with investments in VivoTech in 2006, when it acquired access to the technology required to develop entertainment kiosks. 

Nuti said he was “filling in the gaps” with the recent Blockbuster partnership, adding, “We will probably end this year with 3,000 kiosks.”  Analyst Luria said the roll-out of the kiosks might not meet targets that the company is currently talking about.  NCR expects to spend half of its entire entertainment budget, about $30 million, for the deployment of kiosks in 2009 and a similar amount in 2010. Currently, the market for DVD rental kiosks is dominated by Coinstar’s Redbox business. The market in 2009 is expected to be $1 billion at most, Luria said.

The Movie Booth brand continues to go from strength to strength with leading retail industry magazine Convenience Store featuring The Movie Booth business opportunity in its latest print edition.  You can read the cutting below…

Movies matter

Franchises are infiltrating other areas, too. Take Alan Isaac, who operates NearBuy in the Isle of Man. He introduced The Movie Booth self-service DVD rental franchise five months ago. “People seem to take an interest in it just because it’s something they’re not used to, or have never seen before, and that alone has been a great pull factor,” says Alan. “Once they have used it, they invariably return and make repeat purchases.

“The guys at Movie Booth arranged for the system to be sent to us, set it all up and explained the software. Then it was just a matter of getting used to the system. As with any franchise, the only real barrier is the cost of entry. It’s not a cheap solution but if someone was looking at supplying DVDs, has the resources to make it work and the space, then it’s ideal for our sector.”

The Movie Booth kiosks are now in 20 stores around the UK and Ireland, with another 11 due to go into c-stores soon. For £250 a month, retailers can lease a kiosk and benefit from promotions and an in-store demonstrator at the outset to show customers how it works. The half-a-square-metre vending machines hold 621 DVDs, and the company will set retailers up with a wholesale supplier and recommendations of films to stock.

For further information on how to profit from the DVD kiosk business opportunity please call us freephone on 0800 2922032 (UK) or 1800 932903 (Ireland) or email contact@themoviebooth.com.

How do you profit from a DVD rental kiosk?

This week we thought that we’d give you a bit more insight into how you can
actually become the owner of a DVD kiosk - you’ve had lots of information on
WHY you should invest in this business opportunity, so now we wanted to tell you HOW you go about investing.

FINDING A LOCATION
With several years experience in the sector, we now have a stringent set of
criteria  which  are  followed  to  ensure your machine is placed in a
high-footfall location where business can boom. With etablished retail
partners including Spar, Costcutter, Centra and Supervalu we are able to
secure prime locations in your area on your behalf - this takes all of the
time, effort and worry of sourcing a location out of your hands.

SECURING FINANCE
Like a majoirty of our current investors, we wouldn’t expect you to be able
to pull the full investment cost for the kiosk out of your back pocket. With
this in mind, we have secured a number of partnerships with leasing finance
companies.  This enables you to spread the payments for your kiosk across a
longer  period  of time, ensuring you are able to not only afford your
payments but profit from your investment from month one.

SETTING UP YOUR KIOSK
The Movie Booth has developed an infrastructure which gives you guidance
and support on every step of your business setup. Our technical staff assist
in ensuring you have internet, power and communication systems in place to
launch the kiosk. Our marketing team guide you through how to promote your
business through tried and tested methods.  All of this support is offered
from the first day your investment begins, and continues throughout your
partnership with The Movie Booth.

For a more in-depth chat on how to operate a Movie Booth kiosk, please
contact  us  FREEPHONE  in  the  UK  on  0800  2922032  or  in Ireland
on 1800932903, alternatively email contact@themoviebooth.com.

In the USA, our DVD rental kiosk cousin Redbox continues to thrive.  The latest news is that not only have they seen off the challenge of Blockbuster, but are now also competing directly with Netflix, the online rental-by-post service.  The growth of Redbox is ude to the amount of kiosks deployed across America, which is something The Movie Booth soon hopes to emulate in the UK and Ireland.

Redbox Threatens Netflix

As you are probably now aware, last week we launched two of our DVD rental kiosks at Tesco stores in Wexford and Dublin last week.  We’ve had a great response to the kiosks so far, with the Wexford kiosk making an incredible 52 rentals on Sunday alone.  We’ve got high hopes for the success of these trials, and we still have business opportunities available across the UK and Ireland.  Call freephone 0800 2922032 (UK) or 1800 932903 (ireland) to discuss new business opportunities available in your area.

We recently launched one of our DVD rental kiosks in a Co-Op store in St. Helier.  This business opportunity was purchased by Gianni Carratu and placed in the busiest Co-Op store in the entire UK and Channel Islands.  We had high hopes for the kiosk, and so far we’ve been proven correct as the machine has had a fantastic initial response.

Store Manager at the Co-Op David Martin said “The DVD kiosk has been a good addition to the store – we’ve put it into a prominent area which has helped maximize its profile.  We offer half price Wednesday rentals which is a nice bonus, but the key factors behind its success have been the fact that its easy to use and offers low price rental”.

For information on business opportunities available from The Movie Booth call freephone 0800 2922032 from the UK or 1800 932903 when calling from Ireland.

News reaching us today suggests that Lovefilm - the company pioneering the rental-by-post market - is in the process of being purchased for around 200 million pounds - this comes depsite the fact that in recent years Lovefilm have been working on building customer base and not generating profits.  The news article appears below…

Lovefilm Owners To Sell Out

THE online DVD rental firm Lovefilm has been put up for sale for an estimated £200m, which could provide a £14m windfall for the company’s management.

The business has grown rapidly since its inception six years ago and has recently received a number of bid approaches. It has hired Jefferies, the investment bank, to advise on these and work on a possible sale.

Lovefilm, with 1.2m members, has become the market leader in mail-order film rental. It has bought out most of its rivals, including a deal last year to acquire the European rentals operations of Amazon, the internet retailer, for £63m.

At its launch, Lovefilm was one of several firms, such as Video Island and Screenselect, started by entrepreneurs offering a similar type of service. Lovefilm has picked these off, and today accounts for more than half of all DVD rentals in the UK. It is testing a video-on-demand service that allows customers to down-load films straight on to their computers.

Lovefilm’s management, led by chief executive Simon Calver, owns a 7% stake in the business. Amazon is a 32% shareholder after last year’s deal, while the rest of the shares are owned by venture-capital firms and business angels.

Lovefilm said: “The company has received a number of approaches and the board is exploring options on behalf of the group and its shareholders. The company cannot comment any further.”

Analysts suggest that a private-equity firm is most likely to buy the company.

Lovefilm’s latest accounts, due to be published shortly, are expected to show that the group generated turnover in 2008 of £73m. It is understood to be on course for more than £100m this year.

The Movie Booth business opportunity is now working in tandem with some of the UK and Ireland’s leading retail groups.  These include Spar, Supervalu, Nisa and Costcutter.  Recently some of the retail store managers who have worked with The Movie Booth gave us some feedback on the benefits of the concept…

Rod Tindall, Director, Alfred Jones Group

‘The Movie Booth has had a very positive impact within The Alfred Jones Group.  The DVD Rental kiosks are currently based in 6 of our Spar convenience stores and we are looking to expand throughout the group owing to their success.’ 

‘I have been impressed with the method of operation that requires a significantly lower level of staff, management and administrative time than that of a traditional in-store DVD rental solution.  In addition to this, the space required for the kiosk is surprisingly low and allows it to fit seamlessly with the rest of our store operation.’

‘Finally, the kiosk has prompted an increase in end-user footfall for both new and existing customers.  Our customers have highlighted that they are pleased with the convenience, title selection and user friendly interface that the kiosk provides.’

Alan Isaac, Store Owner, Nearbuy, Isle of Man

“The Movie Booth is one of our great unique selling points. Customers are initially curios about the concept, and this curiosity has quickly turned into people visiting the store just to use The Movie Booth kiosk. We’ve found that as well as the complimentary purchases to go with their first movie, customers often return and have frequent repeat purchases. The low price keeps customers loyal to the Booth, and I believe that the Movie Booth will be a long-term stable and highly profitable source of income for our business.”

Chris Greenwood, Store Manager, Spar, Formby             

“From the stores perspective, we think it is a great idea - it’s really simple to use so we don’t have to spend lots of time helping our customers to rent movies. It’s proving to be a reliable service - we don’t have any other DVD rental in Formby so I know that lots of people were happy to see the kiosk launched here. With local publicity and clear point of sale advertising our customers have been happy to use the machine.”

Lewis Talbot, Store Manager, Spar, Warrington

‘Many of our customers are happy with the concept, whilst from a management perspective I am pleased as the kiosk effectively runs itself.  I have also noticed an increase in confectionary sales being bought by customers who rent form the kiosk.’

Mark Pennock, Store Manager, Spar, Southport

‘The kiosk performance has far exceeded my expectations and fully justifies the term ‘fully automated’.  It has encouraged new customers to frequent the shop, who have been most happy with the method of payment, (credit or debit card), which gives them confidence that their transactions are secure and that membership is not necessary.’

Sue Mcgivern, Store Manager, Centra, Belfast

“My advice to any retailer considering a Movie Booth kiosk would be to install one! The main things that have attracted our customers to the kiosk is the good quality range of DVD’s on offer, the low prices and the ease of using the kiosk. I am very happy with the level of service we receive, and our weekly communication works efficiently to get any issues resolved quickly. I’d happily recommend the kiosk to any store owner or manager.”

David Mcelhill, Store Manager, Centra, Belfast

Because the system runs itself, we don’t have to actually interact with users on a day-to-day basis - the customers come in-store, rent their movies and are away. Since launching, the service has proven to be extremely efficient and having the kiosk here has benefited our customers. I think if you target the right market the DVD rental service can be very successful, as we have seen with the number of users of the machine here constantly growing.”

John Youssef, Kiosk Owner, Merseyside

“Lots of people have been impressed by the machine and how easy it is to use. I don’t think people like to rely on the internet rental sites because you never get the film you want. I’ve notice that the new releases are always popular the week they are available. Also, many people comment that its cheaper than box office. And besides that the machine itself is fun to use!.”

“To anyone looking to start up a new operation with The Movie Booth my advice would be to listen to what the guys in the office at Movie Booth tell you to do in terms of marketing and launching the kiosk, as this is important in ensuring that you have a busy start to the business from the word go. The service provided by The Movie Booth has been efficient and the staff there are always on hand to assist with any question or issues I have, so I’m never left in doubt as to what is occurring with my operation.”

For information on business opportunities available from The Movie Booth please call 0044(0) 870 1436769 or email contact@themoviebooth.com

DVD Business opportunity flourishes in retail 

People love going to the movies to catch up on the latest movie blockbusters, and Hollywood has long provided a constant stream of action packed titles.  However, recent developments in movie rental market means that top Hollywood titles are now being made available in local retail stores across the country, and this is proving to be one of the mosty profitable business opportunities around.

The credit crunch has ushered in a new kind of consumer who seeks cost-effective ways to get access to entertainment.  In the US, where the credit crunch has hit hardest, consumers have increasingly turned to DVD rental kiosks as a cheap way to get access to movies.  Some of America’s giant retail corporations now employ this technology including Wal-Mart and Safeway, alongside of multitude of small and independent retailers. There are now over 30,000 of these units across the States, and it looks as if recession-hit consumers in the UK and Ireland will also soon be utilising this technology from their local store.

In a further twist, Blockbuster – long considered ‘untouchable’ in the home entertainment industry – has seen profits slide and share price drop as a result of growing concern towards the frailty of their traditional business model.

Demand from consumers for the most cost efficient way to access movies has been exacerbated in the credit crunch, with people increasingly spending low cost nights indoors.  At present, one company pioneering this technology in the UK and Ireland is The Movie Booth – and they are now establishing retail partnerships with store owners across both nations.

The DVD kiosk is a fully automated operation which enables users to rent new release movies for £2 per night. The kiosk employs a debit /credit card payment system, requiring no on-site staffing.  In addition to this, the kiosk stores more than 600 movies in a space less than that of a single door Coca Cola fridge meaning it can be placed in even the smallest of retail stores.

The company currently has twenty kiosks installed in retail locations across the UK and Ireland, and expect this number to grow to fifty by the end of the year.  Managing Director Carlos Marco said “We have established our product in the retail market now – its a great addition to any store in the credit crunch.  We are working with stores of all sizes at the moment, and are keen to expand in new areas across the UK and Ireland”.  If you are a retailer interested in making money from this business opportunity, call 0870 1436769.