DVD Play: Big Picture Retail Thinking
The multi-billion dollar DVD business has grown large enough to rival theatrical releases of films. This is in large part a reflection of consumer demand for the flexibility and convenience of viewing new movies on their own schedule. So it only made sense to tap into this market by providing a more flexible and convenient delivery system for DVDs.
Blackhawk Network is the exclusive distributor of DVD Play kiosks—turnkey, small-footprint DVD delivery vehicles distributed through grocery, drug and convenience retailers. Each kiosk holds 40—60 unique titles, primarily new releases. Customers use the self-serve machines to pick up DVDs in retail locations where they frequently visit, and then return movies to the same kiosk. The inventory is dynamically managed and the merchandise updated on a weekly basis. Virtually all a retailer needs to do is clear out a 6'x2.5' space to start sharing revenues.
Having a kiosk in–store has the dual benefit of driving customer traffic both when they acquire a DVD and again when they return it. With store visits generated by both rentals and returns, a single kiosk can drive over 1,000 customer interactions per week. Now that's what we call an uplifting story.