The history of the movie kiosk industry in North America was pioneered by DVDPlay in 2002, in the heart of Silicon Valley, California, and it really ignited in 2004 when three national retailers tested the business concept. Those retail names were Safeway (nation’s 3rd largest grocery chain with nearly 2,000 stores), Hollywood Video (the # 2 video rental chain), and today’s industry goliath- Redbox (then an operating subsidiary of McDonald’s before being acquired by Coinstar, now Outerwall).
The Safeway and Hollywood Video test pilots were run in the San Francisco Bay Area by DVDPlay, and Redbox ran a 160 store market test in Denver using DVDPlay machines, software and support. The tests were wildly successful and movie kiosks immediately became the “must-have” next big thing in retail.
There were M&A discussions among the pioneers and it was an interesting and exciting time to be in the business. Ultimately, Redbox went its own way, producing its own machine and DVDPlay, after building a national network in the U.S. and regional networks in Canada, would be acquired by NCR years later. (In the latest twist, NCR’s kiosk business, “Blockbuster Express”, was later sold to Redbox. So, Redbox ended up owning DVDPlay in the end.)
As a story of business success and industry disruption, movie kiosks rank near the top.
The industry exploded and in a little over six years grew to approximately 40,000 operating kiosks and $2 billion in revenue, with Redbox completely dominating the industry, exclusively serving large stores and chains. Along the way, all three of the largest national video store chains filed bankruptcy, and ultimately disappeared. They just couldn’t compete with the compelling combination of cost, convenience and coolness represented by kiosks.
Seeing the success of the business, new sellers and manufacturers emerged, hailing from Europe, Korea, China, and within the last year or so, even Canada.
We are proud to be pioneers in the industry-
As manufacturers developing and manufacturing Movie Kiosks since 2003, with thousands operating around the world. And as early operators, launching the first major retailer test and deploying the first national network of Movie kiosks in the world.