With the video store concept fading into a memory much like the typewriter, the opportunity for Redbox franchise opportunities would be a great way to monetize high-traffic locations. Redbox video rentals are an excellent business model as the overhead and time to operate are very low. Plus, with over 30% of all DVD rentals taking place at a kiosk and that number expected to increase as traditional video stores continue to go out of business, video rentals may one of the best business opportunities at the moment. While the opportunities for individuals to own a Redbox machine are currently not available, the company is still looking for areas with lots of foot traffic. Business owners that have the right locations can apply to have a kiosk placed on their property. To be accepted, you will first need an area with high retail foot traffic, which means a minimum of 1,500 people a day according to a company representative. If you own a location such as this, submit a request and a company representative will discuss how their process works and analyze the location. You as the business owner are merely renting a space for Redbox to place to the kiosk on your property which has its positives and negatives. On the positive side, there is guaranteed revenue coming in. We surveyed several business owners that started an LLC with their kiosk and they indicated close to $750 after paying for an internet connection and electricity for the highest traffic locations. The downside is if you have this high-traffic location and could get a percentage of sales you could make significantly more income. The other thing to keep in mind is that there is absolutely nothing to do to keep this money coming. Redbox takes care of everything so there is no inventory management, money handling, maintenance, accounting or marketing to deal with, so $750 for no work is a pretty good deal as most business owners will tell you.
So, since there are no Redbox franchise opportunities, but you as a potential entrepreneur see the huge demand and potential for profit, how can guys that don’t already have high-traffic location capitalize on this opportunity? With the rise of popularity in Redbox and the exploding number of locations they offer, some competitors have sprung up to try and take market share away from them. The good news is that these competitors make the franchise model available so entrepreneurs can start and run this great business.
The leading alternative in the movie rental kiosk business to Redbox is DVDNow. They provide you with everything you need to get started as a DVD rental kiosk operator and kiosks operate in much the same way as Redbox. DVDNow is a franchise, so as an entrepreneur you have the opportunity – with some hustle to secure high-traffic locations with DVD rental kiosks and generate an income. A franchise is basically a business model that is available to purchase and put into your community. What makes the franchise model so great is the difficult part of starting a business is taken care of. DVDNow’s franchise makes it easy to get started as they have built the kiosks,can get the inventory to you, and handle all of the record keeping, so you can maximize your time in finding new locations, rotating inventory and collecting the money. One misconception of the difficulty in starting a DVD kiosk is that you can merely buy movies off the shelf and put them in the machine for sale. The movie houses were smarter than that and as such require you to send them a small portion of your movie rental, thereby making the logistics of setting up a kiosk a difficult process. Where DVDNow and you as an entrepreneur has a real opportunity is in the smaller communities that Redbox does not have any locations as they are deemed as not profitable enough for the company and their cost of servicing remote locations are too expensive While the profit potential for Redbox may be too small, there is tremendous opportunity and profits for the entrepreneur as a well run kiosk can run the brick and mortar rental store out of business as the kiosk has a much smaller overhead and employee needs. While industry experts predict that Redbox will eventually move into the smaller markets, savvy entrepreneurs who get a jump and establish a strong presence in smaller communities will be able to keep a virtual monopoly on DVD rentals.