The Ultimate Automated DVD Rental Kiosk

The Ultimate Automated
DVD Rental Kiosk
An easier way to own your own business.
“DVDNow has allowed me to
generate passive income,
giving me more time to
spend doing the things that
people really enjoy.”
DVDNow has the
formula to help
you succeed!
Ready to be your own boss? It’s easier than you think.
By contacting DVDNow, you have taken the first step to
control your financial destiny as a DVD retail kiosk
operator. You’ve shown that you’re looking for a change,
and more importantly, that you care about your future.
Don’t worry if you’re not an expert in video store
operations! We are the experts, and are about to teach
you how to become one!
DVDNow
Automated Rental Kiosk
Why should you Own and Operate a
DVDNow Self-Service DVD Rental Kiosk?
As an entrepreneur you can not own a Redbox franchise for any amount of money.
However, there is now a way that you can participate in and profit from this massive
paradigm shift in the movie rental industry and take your place at the forefront of the
DVD rental kiosk revolution.
Our program provides entrepreneurs the ability, assistance and the necessary tools
to secure independent and mid-sized chain grocery and convenience store locations.
These readily available, and potentially highly profitable, locations are almost entirely
overlooked by Redbox as they focus their deployment into only the largest of the
regional and national chains - locations such as Walmart, 7-11, and Walgreens.
Mid-sized chains and independent locations fully realize the benefit of offering DVD
rentals and are turning to independently operated DVD kiosks to satisfy consumer
demand. With our program, independent operators are able to establish a network
of state-of-the-art DVD rental kiosks in locations such as grocery and convenience
stores, college campuses and large apartment or condo complexes. Our kiosk’s small
footprint makes it suitable for almost any location, while still offering a full selection
of in-demand new releases.
Why do Consumers Love DVDNow?
The answer is simple - Selection, Price and Convenience. There is no other company
or service, not Redbox, Apple, or any cable or satellite provider, that can offer easier
or less expensive access to all of the latest Hollywood blockbusters on the day and
date of their DVD release than DVDNow. Most titles are available in our kiosks at least
28 days ahead of Redbox, and at a price that is as much as $4 per night cheaper than
Video-on-Demand or Apple TV.
Why is Now a Good Time to Enter this Business?
While the timing may not be right for many businesses due to the global recession,
the counter-cyclical nature of inexpensive entertainment to the economy has created
the perfect environment for starting a rental kiosk business. Not only is the DVD rental
industry recession-proof, but most experts agree that rental volume will continue to
increase throughout the recession.
According to Home Media Magazine, an entertainment
industry trade publication, more than 30% of all movies
are now rented from a DVD rental kiosk.
DVDNow has put all the pieces in place, including service and support, to get you in
business as quickly as possible. Just imagine, within 45 days of reading this you can
have your own network of DVD rental kiosks installed and operational, generating
revenue for you and your family.
DVDNow
Automated Rental Kiosk
Why DVDNow?
In taking into account key market concerns that had not been addressed in one
comprehensive product we have come closer to replicating the experience of renting
a movie from a traditional video store than any other kiosk on the market. In addition, our program is uniquely suited to assist entrepreneurs in starting and growing
a profitable rental kiosk business. Our support staff and business advisors walk you
through all aspects of a starting your business, including but not limited to •
assistance in securing quality locations for your kiosks
•
merchant account setup
•
establishing an account with movie wholesaler
•
kiosk management
•
rental pricing strategies
•
revenue growth and expansion strategies
1
Buy it
2
Operate it
3
Profit from it
DVDNow stands behind our Distributors - when you’re ready to grow your
business we will be there to support you with our unbeatable Expansion Financing.
Our product is in high demand with retailers not only because our DVD rental kiosks
are quite often the most profitable per square foot of any item in their store, but also
because hosting one of our DVD kiosks guarantees a subsequent visit from the
customer when they return their movie.
Total U.S. home entertainment spending reached $18
Billion in 2011, with Blu-ray Discs experiencing 20%
growth and becoming the new gold standard.
DEG 2011 Report On Consumer Spending
I have Never Operated a Video Rental Business Before. How do I learn?
DVDNow is your partner and are here to help you. We do not just sell you a machine.
Our proprietary software and web based management platform provide the day to
day support you need to ensure your business runs like clockwork. When you need
personal assistance our 1-800 tech support line guarantees you have professional
guidance when your questions need answers. You do not need to be an expert to
operate a DVD rental business. We are the experts and we will train you to become
one.
WWW.DVDNOWKIOSKS.COM
1.877.849.4272
Our support staff and
business advisors
walk you through all
aspects of a starting
your business
Connections
Web Service
Our Kiosks Couldn’t be Easier to Operate!
DVDNow Connections is the back-end web based software platform that supports our
DVD rental kiosks. This service provides the owner or manager of a kiosk network
sufficient expertise and guidance to conduct business effectively and profitably.
Whether you own a smaller business with five to ten kiosks, or a network of hundreds,
DVDNow Connections is more than capable of meeting your needs.
DVDNow Connections runs on multiple servers in locations throughout the United
States and communicates with DVDNow kiosks around the World over the Internet.
This real-time information exchange enables Connections to keeps you up-to-date
with everything that is happening in your business.
DVDNow Connections will automatically gather, compile and analyze rental data from
your network of DVDNow kiosks, making it possible to predict future rental demand of
specific titles and categories as well as formulating a sell strategy for used inventory.
As a result, DVDNow Connections is able to automatically do the following:
•
Generate customizable reports which provide you with
the insight required to run an efficient and profitable business
•
Identify DVDs that should be marked for sale from the kiosk
•
Upload and manage movie trailers and video commercials through
our Universal Media Gateway
DVDNow Connections provides many standard reports and charts for an instant
snapshot of your business performance. You will instantly find out your best and worst
renting titles as well as the busiest and slowest renting days.
Some example charts include:
•
Revenue / Rentals by month, week, date
•
Revenue / Rentals by title
•
Revenue / Rentals by title category
Reports:
•
Inventory turnover reports: give a snapshot of fast and
slow moving titles
•
Title performance: number of rental turns, copies left on shelf, ROI
•
Transaction reports
Connections
Web Service
What else can you do with DVDNow Connections?
•
Control and manage your kiosks from the comfort of your home or
office. You have direct control of your DVD Rental Kiosk through
DVDNow Connections.
•
Login to DVDNow Connections through the Internet to check kiosk
status, get transaction reports, set rental prices, and mark discs for
sale. You can also see real-time transaction activity
•
DVDNow Connections also provides a gateway to process credit card
transactions, with revenue deposited directly into your own bank
account
•
In the event of a kiosk problem, DVDNow Connections will send you
an automatic e-mail or text message alert
•
Movie descriptions, ratings, trailers and box art are downloaded and
available automatically
What do you not have to do with DVDNow Connections?
•
You never have to do physical inventory as it is kept up to date in
real-time
•
You do not have to be an expert on video store operations. We are
the experts and will teach you how to become one
WWW.DVDNOWKIOSKS.COM
1.877.849.4272
DVDNow Connections
enables you to
manage all aspects
your business from
anywhere in the World
Advertising
Revenue
Multimedia & Static Advertisements
The DVDNow self-service DVD rental kiosk provides a highly targeted advertising
platform for reaching consumers in high traffic areas such as college campuses,
grocery and convenience stores, and large office buildings. Our kiosks offer an
innovative way to reach consumers where and when it is most effective.
Kiosk owners have the ability to sell advertising space directly to local businesses
or a DVDNow account representative can suggest an advertising agency that can be
retained to sell all the advertising space on the kiosk on behalf of the owner.
The Digital-Out-Of-Home
advertising business is a
$2.2 billion market that is
projected to grow to $3.7
billion by 2013.
Advertisement
Type
Description
Suggested Rate
On-Screen
Multimedia
Commercial
10 second ad: $90 / kiosk / month
30 second ad: $150 / kiosk / month
60 second ad: $200 / kiosk / month
Static Box Art
Style Ad
5.5” x 8.5”
advertisement
on side panel of
kiosk
$125 / kiosk / month with 3 months contract
$110 / kiosk / month with 6 months contract
BIA/Kelsey Research
The advertising rates shown above are for example only.
Your advertising rates may be higher or lower.
The advertising choices available on our kiosks provide maximum exposure by
reaching the customer at two key points as they interact with the kiosk.
1
5.5” x 8.5” box art static ad — immediate impact upon
walk-up or walk-by
2
Video screen advertising — immediate impact upon browsing
for DVD’s
3
Jewel Box insert (menu, coupons, etc...) — reaches customer
upon returning home and opening the DVD case
The advertising
panels on each
side of the kiosk
display a “box art”
sized static ad
WWW.DVDNOWKIOSKS.COM
1.877.849.4272
Video screen cycles through
movie trailers and multimedia
commercials
Business
Costs
One Time Cost
Initial DVD Inventory - $1,000 to $1,400
Your VPD Account Representative will assist you in selecting your initial load of DVDs.
A typical starting inventory of 75 to 90 DVDs is recommended, and would be
comprised of both new and select previously viewed titles.
Shipping - Call For Quote
Two-Person “White Glove” delivery service that includes •
Inside delivery
•
Unpacking of kiosk
•
Removal of kiosk from pallet
•
Disposal of all packaging and shipping materials
Optional 3rd Party Location Assistance - 1 kiosk $1,500, additional kiosks $500 ea
Your DVDNow Account Representative can you refer you to a professional kiosk
placement agency that will source, negotiate, and secure locations for your kiosks.
Potential locations that they will approach include grocery and convenience stores,
universities, and apartment and condo properties.
If you are comfortable securing locations on your own DVDNow will provide you with
complimentary marketing materials and sample contracts to assist you.
Ongoing Costs
Connections Web Service - $50 - $75 per month per kiosk dependent on QTY
The DVDNow Connections web service is a powerful application that keeps complete
track of your inventory, financial records, and provides total control of your business
remotely.
Radio Frequency Identification (RFID) Tags - $1 per tag
RFID technology allows your kiosk to keep track of your inventory. Each DVD
receives one tag which allows the kiosk to recognize the disk when it is returned.
Insert Sticker - $0.15 per tag
An Insert Sticker is a metallic sticker that is affixed to the DVD case to ensure
that the movie is orientated correctly when inserted into the kiosk.
Business
Costs
Internet Connectivity - Up to $75 per month
(location may share their existing connection at no cost)
Variable Monthly Costs
DVD Inventory - Costs will vary on a weekly basis depending on the number of DVDs
released in a given week.
DVDNow has a program in place with Video Products Distributors (VPD) in the United
States and Entertainment One (E1) in Canada that offers preferential pricing, nocharge delivery, and custom-sized movie art to DVDNow owner operators. Regardless
of how many kiosks you personally own and operate, being part of our network of
kiosk owners gives you access to these programs with benefits normally reserved for
only the largest accounts.
Merchant/Gateway Account - $250 Setup Fee & variable monthly fees
DVDNow will assist you in the setting up of your own merchant account for the processing of credit card on your kiosks. If you already have a merchant account you may
be able to utilize that account for your DVDNow kiosk business. Please speak with
DVDNow technical support for assistance.
WWW.DVDNOWKIOSKS.COM
1.877.849.4272
Expansion
Program
DVDNow Expansion Financing
DVDNow Expansion Financing is available to all qualifying kiosk operators that have
had a minimum of 2 DVDNow kiosks in operation for 120 days or more. At that point,
the kiosk operator may double the size of their route with 50% down and the balance
carried over 24 months with zero interest and zero finance charges.
This process may be repeated every 120 days until the desired route size is achieved.
Number of Months in Operation
Number of Rental Kiosks Deployed
0
3 Kiosks
4
6 Kiosks
8
12 Kiosks
12
24 Kiosks
Above: Example of a customer that starts with 3 DVDNow Kiosks
and maximizes expansion financing when available
Blu-ray will be the driving force
behind the video retail market
throughout the next decade.
Wade Holden, analyst at SNL Kagan
WWW.DVDNOWKIOSKS.COM
1.877.849.4272
Kiosk Specifications
& Pricing
Merchandise Type: DVDs, Video Games or Blu-Ray Discs
Media Packaging: Original Case
Transaction Types: Rental & Sale
Dimensions (W x D x H): 30 x 24 x 70 inches
Interface Type: Touch Screen
Primary Video Display: 15-inch LCD
Secondary Display Output: High Definition HDMI
Color: Red
Incl. Accessories: 2 Advertising Panels
Optional Accessories: Flat Panel TV Mount
Program Size
Per Unit Cost
Total Program Cost
1 unit
$18,995
$18,995
2 units
$17,995
$35,990
3 units
$17,495
$52,485
5 units
$16,995
$84,975
10 units
$15,995
$159,950
Program Includes:
Advertising Side Panels
Program Manuals, Marketing & Location Assistance
Professional Installation
Professional Marketing Materials & Collateral
24/7 Remote Monitoring via Connections
Subscription to DVDNow Forum & Portal
White Glove Professional Delivery (add’l charge)
WWW.DVDNOWKIOSKS.COM
1.877.849.4272
DVDNow Outdoor Rental Kiosk
• Full “bus stop” style for installations exposed directly to weather
77.91”
41.63”
• A high definition outdoor-rated TV
built into the enclosure may play
movie trailers and advertise promotions
• Secondary option of the kiosk
itself without “bus stop” enclosure
for outdoor installs in a sheltered
location
92.67”
• Protective steel door for security
• Inside components are treated and
changed to be weather resistant
• The front DVD rack swings out to
provide access to service the machine without having to pull away
from a wall
Renting a DVD is STILL as easy as using an ATM!
Program Size
Item
Cost
1 unit
outdoor kiosk
$21,000
2 units
enclosure & built-in tv
$4000
1. Browse using the touchscreen or select from back-lit title menu
2. Swipe your credit card
3. DVD slides out of the dispenser
That’s it!
60.63”
25.20”
3 units
Total
5 units
WWW.DVDNOWKIOSKS.COM
$16,995
1.877.849.4272
$84,975
$25,000