Redbox Set To Close Over 500 Kiosks

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Redbox’s streak of big growth is over: the company says it plans to uninstall more than 500 of its DVD / Blu-ray rental kiosks this year. The move comes after Redbox saw its revenue increase by just 3 percent last year, and The Wall Street Journal says it’s not likely to see better results in 2014. But beyond the flat growth, Redbox seems to be running out of new spots for its signature rental machines, having already hit saturation across most major US supermarkets. The company has previously revealed that it operates over 40,000 kiosks.

That clever placement strategy has helped the company find success with its $1-per-day rental model. Since starting with DVDs, Redbox has added Blu-ray and video game rentals, though both cost more than a dollar. Blu-rays made up 15 percent of disc rentals last quarter; video games represent only 3 percent of revenue. Redbox has also experimented with branching out beyond home media at its kiosks, but those tests haven’t gone well. The company tried selling concert and event tickets through the machines, but abandoned that idea in less than a year.

 

Read More At The Verge.