Prepared by:Matt McKinney, Jose Rodriguez, Casi Yost

History

• Began in 2003, with funding from McDonalds Ventures, LLC

• Served as secondary machine next to “Grocery Box” machines in Washington D.C.

• Coinstar purchased 47% in 2005, then purchased the remainder of the stock for about $170 million in 2009

Recent Achievements

• Began re-branding kiosk made by DVDPlay, then contracted Solectron to make a new machine

• Surpassed Blockbuster in 2007 for store locations

• Passed 100 million rentals in February 2008

• Recently signed with EZ Mart stores and CVS Pharmacy stores (over 7,000 possible locations)

Strengths

• Price: $1 a night, after 25 nights the DVD is yours

• Locations: Over 23,000 kiosks

• Ability to rent from one kiosk and return the DVD at any other Redbox kiosk

• Low operating cost: small workforce, no rent, no utilities, minimal theft

Weakness

• Lack of movie selection

• Warner Bros., Universal, and 20th Century Fox studios release their movies to Redbox after a 28-day waiting period

• No brick and mortar location

• Microsoft OS system is sluggish

Opportunities• Blu-Ray movies and video game rentals

• Moving into streaming movies online

• Looking into moving into a delivery service

• Getting studios to deliver movies upon release, rather than waiting 28 days

• With 220 million people passing kiosks weekly, many opportunities for new customers

Threats• Blockbuster and Netflix offer delivery and

streaming

• Customers are accustomed to $1 rentals, so a change in price could cause a drastic change

• Lack of selection at a given kiosk

• Security, people not wanting to use a credit card for a $1 purchase

Promo’s

• DVDONME• BREAKROOM