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Redbox kiosks push into new McDonald's markets

“In December 2006, Redbox was available at more than 800 McDonald’s restaurants in the following six markets: Baltimore, Denver, Houston, Minneapolis, Salt Lake City and St. Louis. By the end of 2007, Redbox anticipates being operational in 20 McDonald's markets nationwide," said Greg Waring, Redbox VP of marketing.

Earlier this year, Redbox added McDonald’s restaurants in Oklahoma City, Okla.; San Antonio, Texas; Colorado Springs, Colo.; and Jacksonville-Gainesville, Fla.

The company recently surpassed 4,000 locations nationwide, spanning 2,600 grocery outlets and 1,400 McDonald’s restaurants.

Recent grocery expansion includes pushing into nearly 100 Acme Stores in the mid-Atlantic states, more than 350 Albertsons stores in the western U.S., nearly 185 Jewel locations throughout Chicago and about 185 Shaw’s locations in New England.

The company has doubled its overall footprint since January. Redbox DVD rental machines are now available in 30% more grocery locations than its closest competitor, according to the company. Redbox’s nearest rival is TNR Corp., which had installed about 2,000 machines in various grocers nationwide through June.

On a rental revenue basis, Redbox ranks fourth behind industry leaders Blockbuster, Netflix and Hollywood Video/Movie Gallery, the company said, citing internal data and reports from the Entertainment Merchants Assn.

“As consumers continue to embrace Redbox’s unmatched value and convenience, we expect our growth to continue at this aggressive pace through 2007 and beyond,” said Greg Kaplan, Redbox CEO.

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