Redbox to expand video game rentals nationwide

Referring to the surging growth at its Redbox unit, the Bellevue-based Coinstar said it will soon start renting video games at 21,000 locations.

Redbox revenue surges
The company has been testing game rentals for two years at 5,000 locations. The test began in Aug. 2009 and proved fruitful for the company, resulting in more than 1 million rentals since the pilot program began.

"Strong growth in our Redbox business and consistent performance in the coin business delivered better-than-expected earnings in the first quarter," said Coinstar Chief Executive Paul Davis.

He said the company will expand the number of its kiosks that rent video games to more than 21,000 of its over 27,000 locations starting on June 17.

Referring to the surging growth at its Redbox unit, the Bellevue-based Coinstar said it will soon start renting video games at 21,000 locations.

Expansion of Redbox kiosks announced
On Thursday, Redbox announced that it will offer video game rentals for $2 a day, and the games will feature a mix of new releases and family titles that will be available on all of the major console platforms- Nintendo Wii, PlayStation 3 and Xbox 360.

"Historically, video game products have not been available at grocery stores, drugstores or convenience stores," says Joel Resnik, vice president of games at Redbox. "We make it very convenient by having our kiosks in front of the places people are at every day."

Currently, people can rent a DVD for $1 a day, or a Blu-ray for $1.50 a day.

"Second to movies, renting and playing games is a huge part of the entertainment pie in this country," said Mitch Lowe, president of Redbox. "This is incremental. It's bringing a new member of the household to us. What's better is when people are adding games, they're also adding movies."

Other details
In the beginning, the company is offering 20 unique titles, with hopes to expand that number to 24 in the coming months. Resnik said the company expects to offer 80 to 100 unique titles every year.

Redbox, the bright red fully-automated DVD rental kiosk, has been testing video game rentals at 5,000 locations, including cities like Orlando, Austin; Reno, Nevada and Wilmington, N.C.

The results were so encouraging that it prompted the company to expand its distinctive bright red movie rental kiosks. According to the company, it rented more than 1 million video games in less than two years.

"Our customers have embraced it," says Lowe. "For us, it's really about the entertainment that households consume."