More DVD Rental Machines

BusinessWeek Online is running a short article about DVD vending machines. I've written about the $1 McDonald's machines, but this story features a 2,000 title storefront ATM machine by Moviebank USA. The machine gets about 100 rentals a day at 99 cents for 6 hours. According to the story, Moviebank is planning on rolling out 3,000 machines within 3 years.

There's a Moviebank in a Duane Reed store near my office in Manhattan, and here's a picture of the huge machine:

Thanks to Joe for sending this in.

Comments

6 hours really doesn't seem like a good deal - it's bad enough trying to return a movie the day after renting it, so I can hardly imagine renting a movie in the late afternoon and rushing back to return it by midnight that night...

I agree. A college campus, hotel, or large apartment building could be useful tho.

I wonder if they make profit on $100 bucks a day. Doesn't seem like a lot to me.

[Michael]

I go to college and even I wouldn't pay for only 6 hours...it's just too quick. Also, hotels usually cost more so 99 cents wouldn't be practicle for them. The apartment building is a good idea, though, I think, cause it's actually where you LIVE so it wouldn't be hard to return the movies.

Its not all six hour rental---they are just the cheapest. Moviebank charges $2.50 if you want to keep it for 24 hours and $1 per day after that.

[bors]

gonna bite into Blockbuster store front business.
espically if the location convience factor manifest.
i sense that Supermarkets/Walmart Supercenters
would be ideal locations.

[Rob Emmerich]

Their website - closer to a webpage - looks like they spent all of 20 mintues designing it and setting it up. (No, I couldn't do better myself.) Judging from their rather limited message board you need some kind of card to rent movies or pay more per rental. I wouldn't do business with them. As for the 6 hour time limit, when does the extra fee kick in, at 1 minute or 1 hour late? Could be more trouble than it's worth. Just my 2 cents.

--It's perfect for rippers.

--Hotels want to sell pay-per-views at a much higher price, so they probably wouldn't be interested. But convenience stores next-door to hotels might be interested.

--What if the kiosk hiccups and said you didn't return the DVD and they charge your credit card for the cost of the DVD? Certainly they wouldn't be as understanding as Netflix.

--These kiosks would be great for vending porn. You get your DVD anonymously, and you will probably watch it for 6 minutes rather than 6 hours.

[martin]

Check this web sites, they have also dvd machines, i've seen this machines at Virginia commonwealth University (VCU), and i think they are great, they charge $1,50 a day and $1 lates fee.

[martinj]

lol
Here is the web site

www.oneforcemarketing.com

[Pat]

I've been doing alot of research in this area and the best machines I've seen are from VendVision. They use the internet, seem like they would be easier to place as they aren't these huge monsterous things. The prices are much more affordable.
Pat
www.vendvision.com

[Tom]

I have seen all the machines, some of them where present at the Video Summit in las Vegas Nevada... the best of them all is manufactured by Original-video.com

tom

[Sandy Hollow]

Moviemate, Inc. has introduced a series of Automatic DVD Vending Machines intended to serve in scattered and localized markets. They can also be used in traditional video rental stores to extend store hours. The Moviemate Model S series of vending machines are fully automatic, miniature DVD/video-game rental stores that can support rentals as well as sell-through.

[Videoself]

Dear all,

Be careful... In Canada, we also believed in this concept cause it does sound good... The problem is that Videosystem Italia, which is the only distributor overcharges on membership cards ($2.50 each) which demagnetized ALL THE TIME!!! Stores in Canada have been open for 6 years now, and many of them have unfortunately closed. You can buy your membership cards only from them! Our clients cannot not recharge their account with $5 bills because despite all the complaints, Videosystem Italia has not scanned them!!! These bills have been released in November 2006!!!! It is almost April 2007, and our stores are losing and closing one by one...! Here's a copy sent to the UK branches :

Dear Sir/Madam,

I am writing to you to ask for information about the MOVIEBANK company. In Canada there is exactly the same company called VIDEOSELF. We have the same machines, the same provider, etc... and yet today the company is about to go bankrupt...

http://www.videoself.ca

The reason for this is that Videosystem Italia overcharges on all the equipment (membership cards, stickers, etc...) and also that they do not provide the service that they promised as we invested in the concept. For example, we cannot load our pictures ourselves which means we do not have control on our movies or our machines... Videosystem Italia do not update our banknotes reader either... We have a new $5 banknote since November 2007 and our clients cannot recharge their account with them.... Many stores have technical problems (Some of them have been closed for 4 weeks now!) and we still do not have a technical service available!

Due to all the disappointment all the franchisees in Canada have decided have set up a commitee to take legal action against both our coorporation and Videosystem Italia... To this date, a Corporate lawyer is looking into our contracts and is almost certain that we will win the suit. In the meantime, Videoself have decided to give up on its names and are coming back to Canada with a new brand MOVIEBANK instead of VIDEOSELF.

Our stores have been open for 6 years now and we have discovered so many bugs in their software (AXON), the online booking, etc.... It's been a few years now and none of these bugs have been repaired... Worst they're using exactly the same equipment and export it to new countries with the same bugs etc... We would like you to be aware of this to prevent a future similar to ours. Please feel free to pass on this message to all your branches in the UK, we do feel that investors need to be aware of Videosystem Italia manipulations. Would you please answer this email to tell us a bit more about Moviebank in the UK.

Sincerely,

[Videoself2]

Comment deleted per legal request.

[Morgon PJ]

These companies are spending millions and millions and they won't see any profit for many years probably. It costs so much to manufacture these machines. Selling them individually is the best way to make a quick turn around profit in my opinion.

I've heard from the grapevine that Burger King is looking into DVD Rental Kiosk manufacturers, companies like MovieMate ( www.moviemate.com ). Although like McDonalds they won't have profit for many years probably.

Selling them individually to anyone, and those people putting them in grocery stores, gas stations etc seems like the best way to me.

Morgon

[Gen Ma Lau]

Im interested to buy some dvd rental machines but i dont know a lot from this. If anybody know can post the website here.
Thanks...

[Anthony]

if you are interested in opening a 24 rental dvd shop contact me at this email airapet@otenet.gr I have 4 touchscreens and one closet that can fit over 2000 dvds at a very great price. I am looking to sell because i am relocating