Redbox installs kiosks at 7-Eleven locations

Convenience store expansion includes three other chains

By Susanne Ault -- Video Business, 12/15/2008

DEC. 15 | Redbox is spreading into the 7-Eleven chain, as it targets the convenience store market for future growth opportunities.

Starting this month and continuing through next year, Redbox will be installing its DVD rental machines into 2,600 7-Eleven locations nationwide. This will add to select spots within gas station-based convenience chains Maverik, Thorntons and Royal Farms.

Redbox also began offering its 99¢ rentals at airports, with machines spread into Nashville International Airport, Milwaukee’s General Mitchell International Airport and Grand Rapids, Mich.’s Gerald R. Ford Airport.

“We have developed strong relationships with our convenience store partners and both execute around a similar goal, saving busy consumers extra time in their day while offering terrific value and convenience,” said Gary Lancina, Redbox VP of marketing.

The convenience business represents a third major expansion phase for Redbox, which first pushed into McDonald’s restaurants before more recently pushing into the mass merchant/drug/grocery business with such partners as Wal-Mart, Walgreens and Albertson’s.

Currently, Redbox is installed in more than 12,000 locations nationwide. It also has moved outside the U.S. into select Wal-Mart and Walgreens stores in Puerto Rico.

Since launching in 2002 with 12 McDonald’s locations, the company has been on an impressive growth trajectory. Just two years ago, Redbox numbered 2,200 locations, which widened by five times to more than 10,000 at the end of September 2008.

Besides expansion, Redbox also has been making waves with its lawsuit against Universal Studios Home Entertainment over a disputed revenue sharing agreement. The studio is trying to prevent the distribution of its titles to Redbox until the rental machine company agrees to sign the contract.