Movie Rental Kiosks Help New Hampshire Supermarkets Compete with the Giants

NORTH VANCOUVER, BC, January 10, 2013 (Press-News.org) Walmart has Redbox, Market Basket has Redbox, and as of this month, Harvest Market in Wolfeboro, New Hampshire has Hometown DVDs Now. Local residents will no longer have to drive 10 miles or more to the nearest Redbox to rent a Blu-ray or DVD.

"Mid-size supermarkets with mom-and-pop origins are competing against the giants like Walmart and Market Basket. Movie rental kiosks have become the latest must-have staple for supermarkets. Customers expect to be able to pick up a movie at the grocery store," says Edward D'onofrio, the owner of Hometown DVDs Now who lives in Windham, New Hampshire.

D'onofrio launched his movie rental kiosk business in November 2011, with one kiosk at Sully's Superette in Goffstown, New Hampshire. He added three more in March 2012: at Bi-Wise Market in Allenstown, Harvest Market in Hollis, and Vista Foods in Laconia. Another DVD rental kiosk launched at Kulick's Market in Winchester at the end of December 2012.

"These stores are niche markets with a hometown feel. They carry a lot of specialty items, and meet the needs of this local community. They've become part of the fabric of the town," says D'onofrio.

He hopes his new kiosks will receive the same kind of hometown welcome. His first four DVD rental kiosks have been well-received.

"Three out of four are doing really well. One is the runt of the litter, because it doesn't have quite the same foot traffic as the others," he says. "Overall I'm very pleased with the performance so far."

D'onofrio is not the only operator with independent movie rental kiosks. He acquires his kiosks as a business opportunity from a company called DVDNow Kiosks, which has created the largest independently owned network of DVD rental kiosks in the world. All across the United States, operators like D'onofrio are stepping in to supply independent supermarkets with movie rental kiosks, and provide a locally owned alternative to the Coinstar(CSTR)-owned Redbox.

"Redbox criteria excludes most of these independent supermarkets," says DVDNow Kiosks CEO Scott McInnes. "Our operators are able to step in and serve their needs so they hold their own in the face of the big box stores, and that's good for everyone."

The independent advantage - new releases up to 28 days earlier than Redbox
D'onofrio's main advantage over Redbox is the 28-day delay. He's not bound by the movie distribution contracts of Redbox and Netflix (NFLX) and is able to offer their customers new release movies from Fox, Warner Bros. and Universal up to 28 days earlier. He's also able to offer more variety than Redbox.

"Store managers and renters keep telling me they love it - and how they especially love the movie selection," says D'onofrio.

Background info: The ongoing popularity of the disc

DVD rentals continue to be the most popular way to rent movies in America as customers tend to rely on video streaming for television shows and older movies.

31% of online consumers rented discs in the last 30 days
A study released October 18, 2012 by research company the Mintel Group found that traditional DVD rentals remain the most popular way to rent movies, with 32 percent of online consumers renting discs this way in the past 30 days. A quarter of people surveyed said they used online streaming in the past 30 days and 22 percent of people used pay TV to watch movies.
Source: Mintel Press Release, Oct 18, 2012

81% of consumer spending on filmed entertainment comes from disc sales and rentals
Discs still dominate when it comes to retail. Physical discs created the majority of revenue with 81 percent of consumer spending on filmed entertainment coming from physical disc sales and rentals, according to the D2 Report: Discs and Digital - The Business of Home Entertainment Retailing, released September 12 by the Entertainment Merchants Association.
Entertainment Merchants' Association Press Release, Sept 12, 2012

About DVDNow Kiosks
DVDNow launched in June of 2006 and quickly became the leading provider of independently operated DVD rental kiosks. Today, with operations in over 16 countries, DVDNow has the largest independently operated DVD rental kiosk network in the world.

DVDNow Kiosks, Inc. www.dvdnowkiosks.com 1-877-849-4272 x714