Redbox
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| Subsidiary | |
| Industry | Retail/DVD rental |
| Founded | 2002 |
| Headquarters | Oakbrook Terrace, Illinois, U.S. |
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Area served
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United States |
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Key people
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Gregg Kaplan (CEO) (2002–2009), COO & President of Outerwall (2009–present) J. Mitch Lowe (First President) |
| Parent | Apollo Global Management |
| Website | www |
Gregg Kaplan (CEO) (2002–2009), COO & President of Outerwall (2009–present)
Redbox Automated Retail, LLC is an American company specializing in DVD, Blu-ray, and video game rentals via automated retail kiosks. Redbox kiosks feature the company's signature red color and are located at convenience stores, fast food restaurants, grocery stores, mass retailers, and pharmacies.
As of the end of November 2012, Redbox had over 42,000 kiosks at more than 34,000 locations. As of Q1 2013, Redbox had 48% market share of the physical rental market.
Redbox Automated Retail LLC was initially funded by McDonald's Corporation. In 2002, the company placed four automated convenience store kiosks that sold grocery items such as milk, eggs, and sandwiches as well as 11 DVD-rental kiosks in Washington Metropolitan Area locations. Redbox withdrew the grocery kiosks within a year, but the DVD-rental kiosks succeeded, and the company changed its focus to that market. In 2005, Coinstar bought 47 percent of the company for $32 million. In early 2008, Coinstar exercised an option to increase its share from 47% to 51%. In February 2009, Coinstar paid McDonald’s and other shareholders between $169 and $176 million for the remainder of the company.
The company surpassed Blockbuster in 2007 in number of U.S. locations, passed 100 million rentals in February 2008, and passed 1 billion rentals in September 2010. Competitors include Netflix and Blockbuster. In Q2 2011, kiosks accounted for 36 percent of the disc rental market, with 38 percent of that attributable to rent-by-mail services and 25 percent to traditional stores, according to the NPD Group. As of Q2 2011, 68 percent of the U.S. population lived within a five-minute drive of a Redbox kiosk. The numbers for Q2 2013 shows that the Redbox rentals had surpassed 50 percent of the total disc rentals in the country.
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