Redbox expands to Walgreens in Columbus, Phoenix

By Ned Randolph -- Video Business, 11/14/2007

NOV. 14 | Walgreens drugs stores will add DVD rental Redbox kiosks in locations in Columbus, Ohio, and Phoenix metropolitan areas, both companies said Tuesday.

The expansion follows a successful test of Redbox kiosks in Walgreens in a small number of Chicago and Houston-area locations in September 2006. Redbox kiosks will be in 33 Columbus stores and 160 Phoenix stores. The rollout will feature full market presence, advertising support and enhanced in-store merchandising to increase awareness of the service.

"Walgreens has a proud history of offering some of the most innovative products and services in the drugstore industry, and our Chicago and Houston-area customers have embraced Redbox's $1 per night price point and quick, self-service transaction," Walgreens divisional merchandise manager for electronics Robin Randolph said. "We're excited to provide our Columbus and Phoenix customers with this added convenience and look forward to their feedback on the service."

Walgreens also has been testing download-to-burn kiosks and said it will start rolling out DVD burning kiosks in stores within the next few months. The nation's largest drugstore chain has 6,059 stores in 49 states and Puerto Rico.

Redbox has more than 5,000 kiosks nationwide, mainly in grocery stores and McDonald's restaurants. Each kiosk can store 500 DVDs, and averages 100 to 150 new releases at a time. Customers also can rent titles online at www.redbox.com and pick up the movie at a kiosk.

"Redbox continues to gain momentum in the marketplace as we offer consumers a quick, convenient way to rent new-release titles at their favorite retail locations," said Gregg Kaplan, Redbox CEO. "We are thrilled to partner with the nation's premiere drugstore chain and introduce more consumers to the Redbox experience."