Redbox Dabbles in Game Rentals

June 30, 2010 -

Video rental company Redbox is testing videogame rentals in three test cities. The company, which makes use of video rental kiosks around the country, began testing videogame rentals last week in Austin, Texas, Reno, Nevada and Wilmington, North Carolina. The rentals cost $2 a day per titles. The initiative has been rolled out to 150 kiosks units in those regions, according to analysts familiar with the company.

Eric Wold, analyst with Merriman Curhan Ford in New York conducted a survey of kiosk in the target region; he said that the data showed an average of 2.8 video game titles and 3 video game SKUs (platforms) per kiosk.

In a survey of kiosks in Austin, Eric Wold, analyst with Merriman Curhan Ford in New York, found an average of 2.8 video game titles and 3 video game SKUs per kiosk — the latter representing the number of game platforms offered for a single title. Wold said he "was surprised" by the quantity and percentage of titles offered didn’t reflect market penetration of game consoles; only 28 percent of Redbox kiosks renting Wii games despite the fact that the Wii has has the highest U.S. penetration with 28.8 million units. He also found that 39 percent of kiosks held Sony PlayStation 3 titles while domestic market penetration for the PS3 console is 12.5 million units, according to Wold. Xbox 360 games represented 33 percent of the SKUs.

We had hoped to see a larger selection initially when consumers are likely to form initial impressions of the service and determine whether or not they will return at a later date," Wold wrote in a June 30 note.

He went on to say that these tests of videogame rentals has to at least keep up with or outpace video rentals. Some market research would show that videogame rentals tend to last multiple days.

Data about selection aside, this is a simple test to see if Redbox users are interested in having other kinds of entertainment available besides DVDs and Blu-Ray discs. No doubt the company will find that, given the right games, videogame rentals can be quite lucrative. Just ask GameFly.

Source: Home Media Magazine


Comments

Re: Redbox Dabbles in Game Rentals

Thank you for this article, it's really nice!

 

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Re: Redbox Dabbles in Game Rentals

$2/Day is quite pricey. For some games you are better off just buying them outright at those rates.

Re: Redbox Dabbles in Game Rentals

For a Wii game, you'll own it in 20-25 days.

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Matthew WilsonI am old school on this. I believe its a conflict of interest to have public sector unions. that being said, I do not have a positive look on unions in general.07/07/2015 - 3:59pm
TechnogeekWhat's best for the employee tends to be good for the employer; other way around, not so much. So long as that's the case, there's going to be a far stronger incentive for management to behave in such a way that invites retalitation than for the union to.07/07/2015 - 3:10pm
TechnogeekTeachers' unions? State legislatures. UAW? Just look at GM's middle management.07/07/2015 - 3:05pm
TechnogeekIn many ways it seems that the worse a union tends to behave, the worse that the company's management has behaved in the past.07/07/2015 - 3:02pm
james_fudgeCharity starts at home ;)07/07/2015 - 2:49pm
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E. Zachary KnightGoth, if Union dues are automatically withdrawn, then there is no such thing as a non-union employee.07/07/2015 - 2:38pm
Goth_Skunka mutually agreed upon charity instead.07/07/2015 - 2:33pm
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Goth_SkunkIt's something that has existed in Canada since 1946. You can read more on it here: http://ow.ly/PiHWR07/07/2015 - 2:27pm
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Infophilehas an incentive to pay dues if they're represented either way, so the union is starved for funds and dies, unless things are bad enough that people will pay dues anyway.07/07/2015 - 11:02am
InfophileFor those who don't know, "right to work" laws mean that it can't be a condition of an employment contract that you pay union dues. That is, the right to work without having to pay dues. Catch is, unions have to represent non-members as well, so no one...07/07/2015 - 11:01am
MechaCrashUnexpected? Seriously?07/07/2015 - 10:55am
Mattsworknamejob they wanted without the unions getting involved. The problem is, it has some unexpected side effects, like the ones Info mentioned07/07/2015 - 8:49am
 

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