According to Redbox’s rental data, ____________ was the most popular actor in 2013. I’ll give you a hint… she’s hilarious!
Redbox is a subsidary of Outerwall (formerly Coinstar) and was founded by Gregg Kaplan in 2002. He CEO’d the company from 2002-2009 in Oakbrook Terrace, Illionis. Prior to Redbox, Kaplan worked on the Strategic and Development team for McDonald’s Corporation, where he was responsible for recognizing and building new business opportunities.
In 2005, Coinstar purchased 47% of the company for $32 million and in 2009, they paid another ~$170 million to own 100% of Redbox. In June of 2013, the company rebranded to Outerwall (“pushing the walls of innovation”) in due to their growing portfolio of kiosks. After selling the company to Coinstar, Kaplan joined the team and is currently the President and COO of Outerwall. Like Nextflix, Redbox specializes in DVD, Blu-ray and video game rentals. However, Redbox only charges $1.20 + tax per rental. You can find their bright red kiosks at grocery stores, pharmacies, mass retailers, convenience stores (I normally spot them at 7-Eleven’s) and fast food restaurants.
The company was initially funded by McDonald’s Ventures, LLC. The goal was to drive traffic to McDonald’s for a different reason than satisfying hunger. They experimented with two completely different concepts. The first was called “Tik Tok Easy Shop.” The machine was filled with convenience items like milk, eggs, sandwiches, shampoo, etc. The second was called “Tik Tok DVD Rental.” This machine would focus on DVD rentals. After just one year, the experiment had a clear winner – Tik Tok DVD Rental. In 2008, Redbox doubled its locations to 12,000 kiosks across the country and hit their 200 millionth rental mark. The following year, they added another 7,000 locations and in 2010, they proudly announced their 1 billionth disc rental, a milestone Netflix achieved in 2007.
Why is Redbox called Redbox?
Green, yellow, orange and blue are all popular colors. Why red? Honestly, I’m not 100% sure. I sent a couple tweets, but have’t got a response. For now, here is my assumption. Believe it or not, color actually affects our emotions. We see color before we interpret meaning. Think of all the brands that are red, you can probably think of 5 rather quickly. The color red is often associated with energy, excitement and movement, which makes it one of the most eye-catching colors. On the other hand, McDonald’s is famously known for the color red (and yellow) and probably wanted relation.
Formula for Success = New Releases + Low Prices + No Membership
Photo Credit: Redbox History
See Also: Why is it called Netflix?
How to find a Redbox? There are a fews ways. The first way is to download their free mobile app and search by zip code (there are 15 within 2.5 miles of me). The app also allows you to hold a disc for pickup, view new releases and watch trailers. The second way is to open Google Maps and search “Redbox.” The final and most convenient way is to not leave your house at all. In 2012, Redbox launched a streaming service (similar to Netflix, which launched their streaming service in 2008) called Redbox Instant, which is currently available on Roku, Xbox One, Playstation 4, Apple Tv and Google Play.
Vending machines or Kiosks don’t always have to be convenient, they can be insanely weird and unpredictable too. Leave it to our friends at 7-Eleven to take it to a whole new heights. I introduce the mashed potato vending machine. Mmm…
Personally, I use Netflix and Google Chromecast for all my in-home entertainment. I rarely ever drive to a Redbox Kiosk or even use Redbox Instant. I pay a minimal monthly fee to Netflix for unlimited moves–I don’t need two services. Who does? In the past, the kiosk model was more convenient and affordable than Blockbuster. However, the rise of online streaming has added a new layer of convenience for consumers in the marketplace. I do still think theirs is a cheap market segment (low volume movie watchers), however the margins must be minimal and, realistically, how long do you think Redbox kiosks can remain standing?
What do you think their next move is? comment below! Thanks for reading Why is it called Redbox? #whyisitcalledredbox
Adam Lang is the founder and editor of Rewind & Capture. He is passionate about creative marketing, design and brand etymology.