BELLEVUE, Wash. -- Redbox continues to grow at a fast clip, the Seattle Times reports. The DVD kiosk rental service, owned by Coinstar, captured 23 percent of U.S. DVD rentals during January to March 2010, up around 7 percent from a year ago.
Currently, Redbox has around 24,000 machines that rent 9 million DVDs on a weekly basis. This year, the company is adding close to 22 new machines each day, which will increase its number to approximately 30,000 by year€™s end.
With Movie Gallery and Blockbuster shuttering locations, Redbox appears poised to gather even more of the rental market. "We can do in 12 square feet what Blockbuster did in about 2,000 square feet," said Paul Davis, Coinstar CEO. "It€™s almost become a verb: 'We€™re going to Redbox tonight.€™"
Blockbuster€™s portion of DVD and Blu-ray disc rentals dropped to 22.3 percent from last year€™s 28.4 percent, although the chain still beats Redbox in terms of revenue. Blockbuster usually charges more for a five-day rental of a new release than Redbox, said Michael Arrington with Adams Media Research.
Redbox€™s rise "coincides with the worst recession since the Great Depression," said Arrington. Low rental rates have "been key, and it€™s where you go. People are cost-conscious, so they€™re making special trips to places less often."
Typically, Redbox machines hold close to 630 DVDs and are found at Walmart, McDonald€™s, supermarkets and convenience stores. "I€™m hoping to get more customers into the stores," said Chintu Sodhi, who manages several 7-Eleven locations with new Redbox machines. "When they get their DVD, they also can get a soda or whatever."