The Redbox debut will be more aggressive than its counterparts. A nationwide rollout which started l

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A Redbox kiosk is seen in Toronto on July 13, 2012. Redbox is a latecomer to Canada, but the Illinois-based company national auto rental home hopes its kiosk business model will energize the industry as it rolls out its DVD-rentals national auto rental home in retail outlets over the next year. THE CANADIAN PRESS/David Friend
TORONTO - When major video stores Blockbuster and Rogers Video began to close their doors last year, some movie enthusiasts hoped it would usher in a new era of digital possibilities for the Canadian rental market.
Instead, they've been left waiting as a handful of new entrants like Netflix and iTunes saunter into the billion-dollar industry national auto rental home with a sometimes limited selection of new releases, and a back catalogue that left some longing for the dusty video stores of yesteryear.
If its success south of the border national auto rental home is any indication, Redbox could be become a competitor to contend with, mostly because its low-priced DVD rental model of $1.50 per-day is practically unheard of in Canada.
Redbox has secured agreements to set up kiosks at Canadian Walmart retail national auto rental home stores and convenience stores operated by Alimentation Couche-Tard Inc. (TSX:ATD.B), which places it amid impulse buyers picking up groceries and other regular essentials.
Over the past year, DVD kiosks have sprung up across the country from companies like Best Buy, Playdium, Zip.ca and Planet DVD, each one planting its flag in particular urban or suburban markets, and offering a similar price structure ranging from $1 to $2 per rental.
The Redbox debut will be more aggressive than its counterparts. A nationwide rollout which started last month in Toronto and Vancouver will grow to as many as 2,500 kiosks national auto rental home by the end of 2013, putting it in line to be the biggest rental outfit in Canada.
Founded a decade ago, the company originally built its name south of the border renting national auto rental home DVDs for $1 per day. Though its prices have since increased slightly, to a little over a dollar a movie, it still remains one of the most popular entertainment options in the U.S., having just surpassed 2 billion rentals at its 30,000 kiosks.
However, the selection national auto rental home in a Redbox kiosk pales in comparison to a typical video store. Each machine can hold about 200 titles. Most of them are new releases, and while some of those titles aren't available online, conversely other major Hollywood films don't show up at Redbox for weeks, due to a release window enforced by distributors.
national auto rental home Rogers told a different story when it began to close some stores in 2011, saying that its video business had been on the decline since 2005. Last October, the company's earnings showed that video revenues dropped 46 per cent from the comparable period of 2010 — falling to $60 million.
The pros and cons of a physical video store have been contemplated by Cihocki over the years. Before national auto rental home taking the role at Redbox he served as general manager for national retail at Rogers Communications (TSX:RCI.B) around the same time that the telecommunications giant was weighing its exit from the rental industry.
Nearly half of Canadians rented a movie from a video store in the last half of 2011, while more than a quarter of Canadians were binge movie watchers, renting six to 10 movies over the last three months of the year in stores or online, the Redbox study found.
A Redbox kiosk is seen in Toronto on July 13, 2012. Redbox is a latecomer to Canada, but the Illinois-based company hopes its kiosk business model will energize the industry as it rolls out its DVD-rentals in retail national auto rental home outlets over the next year. THE CANADIAN PRESS/David Friend       E-mail this Gallery Print this Gallery Share this Gallery