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Alphaman
07-08-2010, 11:56 AM
Chiefs fans and video gamers. I'm starting a DVD Rental/Sales Kiosk Business (simply stated, it's like Redbox). My first kiosk will be up and running in a couple of weeks (hopefully the 2nd will be following soon). One of the many differences between my kiosk and Redbox is that I have the ability to rent (and sell) video games.

From other owner/operators I've talked to video games haven't proven to be as profitable as one would imagine. That being the case I'm going to tread very lightly with them.

My initial video game offering will only have 1 title (Madden 2011). My question is this, which is more the more popular platform XBox 360 or Playstation 3? My suspision is that it is a half dozen of one and six of the other so I'll need to offer both. I would greatly appreciate your input.

As we get closer to launch I'll be happy to give a free night rental (good for movies or games) to all who'd like to check it out (the first will be located in Lee's Summit).


Another difference between my kiosk and Redbox is that I can offer local businesses the opportunity to take advantage of the traffic flow at the kiosk and going past the kiosk through advertising. There are advertising opportunities:

1) Static advertising placed on side panels with movie box art (customers scan the pictures to see what's available and see your ad)

2) Multimedia advertising on a 26" LCD television on top of kiosk where movie trailors will run.

If you are interested in advertising your business PM me and I'll get you more information.

Saulbadguy
07-08-2010, 12:29 PM
With a title like Madden, 360 will be the more popular platform, but perhaps not by a huge margin, especially when limited to one machine.

By the way, I think your business will fail. Nothing personal, just a hunch.

Alphaman
07-08-2010, 12:35 PM
With a title like Madden, 360 will be the more popular platform, but perhaps not by a huge margin, especially when limited to one machine.

By the way, I think your business will fail. Nothing personal, just a hunch.

Thanks. I appreciate it. Care to expound on your opinion. I'm not offended so I'm not looking to get into an argument. Just curious.

BossChief
07-08-2010, 12:37 PM
My suspision is that it is a half dozen of one and six of the other so I'll need to offer both.
LOL

Deberg_1990
07-08-2010, 12:38 PM
360 is more popular for now.

As for the Kiosks, they are popular for now, but will eventually die off. Streaming movies like Netflix is the future. Just MHO

Epic Fail 007
07-08-2010, 12:52 PM
i have both,i like both/ps3 is slightly better because of how they use their blu ray technology in every game.truely theres no reason 1 system should better than the other their both good,better then the wi

icepick64
07-08-2010, 01:06 PM
is it a 1.99 per night for these rentals? If so, redbox gots you beat

Chazno
07-08-2010, 01:12 PM
So you want to rent video games and only want to carry one title? The title you want to carry will have little to no value 8 months after you put it in the machine. I don't see this working.

kepp
07-08-2010, 01:14 PM
I have a PS3, but my gut tells me that, for kiosk business, 360 games would be better. Maybe go to a local Blockbuster or someplace like that and ask them which console's games they rent out most.

Sofa King
07-08-2010, 01:22 PM
you got pr0n in that machine?

Hays
07-08-2010, 01:33 PM
The problem with netflix is that they don't get their movies as soon as they come out anymore. The last few new movies I have wanted are out in the rental places 2 weeks or 3 weeks before Netflix is allowed to rent them.

Mr. Arrowhead
07-08-2010, 01:36 PM
The problem with netflix is that they don't get their movies as soon as they come out anymore. The last few new movies I have wanted are out in the rental places 2 weeks or 3 weeks before Netflix is allowed to rent them.

Yup i agree, its starting to irritate me a little

DMAC
07-08-2010, 01:39 PM
Always keep a copy of Westworld for good luck.

Deberg_1990
07-08-2010, 01:45 PM
The problem with netflix is that they don't get their movies as soon as they come out anymore. The last few new movies I have wanted are out in the rental places 2 weeks or 3 weeks before Netflix is allowed to rent them.

Thats because alot of the movie studios signed deals with Netflix to protect their "sell through" window.

It basically pushes the rental window back a month.

Redbox has a few deals too, just not as many for now.

DVD's are dying, the studios know it, but they are still milking it for all its worth.

Param
07-08-2010, 01:53 PM
Is the kiosk going to be outside? Because someone is either going to smash it or try to steal the tv. A lot of red boxes get their screens smashed. But, they are usually quick to replace them.

I'd go with Xbox since it's the more popular platform for madden. Maybe add a title like Halo Reach in the future, etc. Renting out a popular game on release date would probably make some $$$

Param
07-08-2010, 01:54 PM
Redbox has a few deals too, just not as many for now.



I noticed their price went up to a $1.15 a day now.

Gonzo
07-08-2010, 01:59 PM
With a title like Madden, 360 will be the more popular platform, but perhaps not by a huge margin, especially when limited to one machine.

By the way, I think your business will fail. Nothing personal, just a hunch.
Wow. Nice support system we've got here. ROFL
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L.A. Chieffan
07-08-2010, 02:06 PM
i gotz free codes for red boxes...

bowener
07-08-2010, 02:24 PM
I haven't read through the whole post, but here are random thoughts I have when I want to rent video games from something like a redbox (and they don't exist):

1. Put this mother ****ing kiosk somewhere that I can get to it 24 hours a day! Renting anything is typically done on a whim, like when you walk out of wal-mart and see that damn (blue) redbox sitting there... awful tempting at 1am (especially if you are high).

2. I don't give a **** what is advertised on it, I am going to ignore it (especially if I am high).

3. The cost obviously matters a lot. If it is $2 I wouldn't rent a game for $2 a day... maybe you have some kind of option between a 1, 3, and 5 day rental? Maybe the price goes $2, $4, $6 respectively (and every day after that is $2 until it reaches $60 or $70, then the game is there's to keep. That lets it work about the same as redbox, where if they keep it for about a month, the movie is there's to keep. Also, think about the idea of having it pay you back if you bring it back a day early (say on day 4 instead of 5, so it charges you $5 instead of $6).

4. Madden might be a good idea for a rental, but most people who play Madden are going to buy it. People who want to rent it will rent it to see if they want to buy it, which means they are going to rent it once for 5 days or so (if that). Anybody else who rents it will likely keep it for a long time, thus keeping most other people from renting it, and keeping you from making more money more quickly... either way you get money, just not as much. I would honestly consider picking 3-5 games to start, and have 2 of each (yes more up front cost, but it will work better for you). At least then if I go up to rent madden from you, but see that it is gone, I might still have the need to play some video game I don't have, and thus rent another one of the titles you offer. I don't know what tech you are using, but hopefully it is a knock off of redbox, otherwise I am going to come rent games from you and replace your disks with my worn out and ****ed disks... which brings me to my next question: how are you going to charge people if they bring back a wrecked disk? Will the machine run it to see if it works before it lets an unsuspecting customer rent the game again? I can tell you that I would probably kick your machine a shit load if I rented a ****ed up game and there was no person there to hand me my money back.

5. Instead of renting movies and competing with redbox, you might just want to think about renting only or mostly video games and a few big title movies or new releases... at least your box will be more unique and cater to a different crowd.

You might want to look a lists of best selling games by year or type for each platform to do some research on game titles that are most likely to be rented.

DBOSHO
07-08-2010, 03:16 PM
The problem with netflix is that they don't get their movies as soon as they come out anymore. The last few new movies I have wanted are out in the rental places 2 weeks or 3 weeks before Netflix is allowed to rent them.

I work at a blockbuster. We usually get 28 day windows on i think warner bros movies( whatever the blindside/alice/hottubtimemachine is)

we are getting raped by redbox and netflix so thats our methods of staying afloat

DMAC
07-08-2010, 03:20 PM
I work at a blockbuster. We usually get 28 day windows on i think warner bros movies( whatever the blindside/alice/hottubtimemachine is)

we are getting raped by redbox and netflix so thats our methods of staying afloatWhy doesnt blockbuster just come out with a "redbox".

Fritz88
07-08-2010, 03:22 PM
I love PS3 but xbox 360's community gives it a huge advantage.

DBOSHO
07-08-2010, 03:26 PM
Why doesnt blockbuster just come out with a "redbox".

We do. Its called blockbuster xpress or something but its not in very many places

Deberg_1990
07-08-2010, 03:33 PM
We do. Its called blockbuster xpress or something but its not in very many places

They also got into the online rental/streaming business right?

Chazno
07-08-2010, 03:35 PM
We do. Its called blockbuster xpress or something but its not in very many places

I just read they signed a contract with QuickTrip and will be putting in 75 in the KC metro area

Alphaman
07-08-2010, 04:43 PM
You guys raise some good points and ask some good questions. Here are a few answers to some of the things you asked about:

1) My machines will ONLY be placed inside the stores. 2 reasons: security and I want the customer to bring the movie back into the store. In many cases that customer will buy something from the store. Helps my relationship with them.

2) Yes Netflix has a delay in several new releases. The same is true with Redbox. They have a 28 day window where they cannot offer newly released movie from 3 of the major studios. I don't have that same restriction.

3) My price will be $1.49, largely because I'll be offering new releases a month prior to Redbox.

4) I'm still working on video game pricing, but it will be higher than a movie. The retail price of Madden 2011 will be around $55. If someone wants to test it out for 5 days before they buy it, they'll be able to do so from my kiosk for much less than $55. If they like, they can also purchase it right from kiosk.

5) I'm only going with one title right now because other owner/operators have said video games don't do well. I'm just testing it. The price is too high on video games to test more than that.

6) Blockbuster does have the Blockbuster Express Kiosks. They aren't owned by Blockbuster, they are owned by NCR who I assume pays a naming rights to Blockbuster. I knew they would be in QuikTrip soon. I had preliminary discussions with QuikTrip and they told me they would be going that direction. They will do well there.

7) Streaming is a concern to this business. However, Netflix does not stream new releases. I will only be offering newly released movies in my kiosk. I'll have new releases available every Tuesday.

8) There will be no porn in my kiosk.

ChiTown
07-08-2010, 04:45 PM
8) There will be no porn in my kiosk.

:facepalm:

Alphaman
07-08-2010, 04:51 PM
:facepalm:

LOL!!! I knew that was coming.

DBOSHO
07-08-2010, 05:04 PM
They also got into the online rental/streaming business right?

Idk if we have a streaming service yet but we have blockbuster online.
Its like 18 a month for 3 movies out at a time. It isnt bad, but netflix is cheaper and streams

Deberg_1990
07-08-2010, 05:30 PM
4) I'm still working on video game pricing, but it will be higher than a movie. The retail price of Madden 2011 will be around $55. If someone wants to test it out for 5 days before they buy it, they'll be able to do so from my kiosk for much less than $55. If they like, they can also purchase it right from kiosk.
e said video games don't do well. I'm just testing it. The price is too high on video games to test more than that.



So if someone rents a game for say $5, then decides they want to buy it from your machine, do they get the game for $50 instead of $55 ? Just a suggestion...
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Bane
07-08-2010, 05:33 PM
We have both.Actually my boys play the 360,and I prefer the PS3.I understand the online gaming advantage of the 360 but I personally don't game online much.

Alphaman
07-08-2010, 08:10 PM
So if someone rents a game for say $5, then decides they want to buy it from your machine, do they get the game for $50 instead of $55 ? Just a suggestion...
Posted via Mobile Device

Yeah, Ideally that's how I'd want to do it. I'm still working with the software to figure out what is possible with pricing.