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Red Box Sees Success with Video Game Rentals

Published Jun 25, 2012 By HD Living Staff

Red Box has made movie renting easy and affordable since they opened over 30,000 kiosk locations nationwide. They are present in every state and have proved to be the most effective way to easily access and rent movies. Once the public realized how easy to use these kiosks were, customers began to take full advantage and have rented more than 1.5 billion disks to date. In April, Red Box decided to top new release and family video games, which includes games for PlayStation 3, Nintendo Wii and Xbox 360 to start off, with the possibility of adding more options as they see fit.

Adding video games to Red Box kiosks has proved to be a success. There have been over 18 million videogame rental transactions at Redbox since they were introduced a year ago. Because the rental fee is $1 to $2, it makes it easy for customers to rent a game for two to three days to get a feel for whether they want to buy the game. This eliminates the hesitancy to buy a $60 game because they are unsure whether or not they will like it.

After much research Red Box was even able to pinpoint the most common demographic that was taking advantage of their kiosks to rent video games. Through customer surveys, they found that the typical customer is a 31-year old male with three or more kids who rents games for both himself and his family. Out of the 40% of patrons who said they were female, many were moms. This speaks to how offering cheap rental fees Red Box has allowed for casual gamers to easily access a number of different video games for a fraction of the cost of buying them.

In competition with companies like Netflix, Red Box has solidified themselves as a prominent movie and game rental contender because of their focus on impulsive in-store rentals as compared to ordering them from the home. Renting from Red Box locations provides instant gratification and has broadened the audience for both movie and game rentals.

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