Redbox is a business with a future.
When times are tough, and revenue is down, it’s increasingly important to think outside the box.
Ideas that once seemed too far fetched for your business, or too much of a shift for your target market can be re-hashed, and tested on a small scale. You never know what, when, or where your next million dollar idea will come from.
The wildly successful video rental company Redbox started out as an experiment by McDonalds, and quickly grew from a 12 location test to a lean and mean competitor in the video rental space with over 15,000 kiosks.
Redbox sales figures continue to climb.
It’s nearly impossible to miss the Redbox kiosks these days. They are outside, inside or near virtually every supermarket. The great news if you’re a Redbox executive, is the sales revenue is climbing.
2008 saw a 200% revenue increase over 2007, and 2009 is only looking better as kiosks continue to pop up across the nation. In today’s economy consumers see Redbox as an affordable alternative to NetFlix or Blockbuster.
The typical Redbox kiosk is estimated to earn an average of $50,000 annually. Here’s a breakdown of the total number in the United States year over year.
2007: 6,300 Redbox Kiosks
2008: 12,000 Redbox Kiosks
2009: 21,000 Estimated Redbox Kiosks
Buying stock in Redbox isn’t easy…yet.
Redbox initially announced they would be a publicly traded company by the end of 2008, however they delayed their IPO due to the status of the economy. Coinstar owns a 51% share of Redbox, and together with McDonald’s they own 95% of the company.
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