Buying a Franchise

Just One Franchise: DVDNow Kiosks

Where do Americans get their movies? The movie rental industry has changed from local and national video rental store chains where huge amounts of space were dedicated to stock and displays to compact, automated machines that require little money to run compared to storefronts. Redbox is undoubtedly the leader in the industry with 50% of the market share.

With streaming movies available from many sources on many devices and the DVD rental landscape dominated by one company, it may not look like a great time to open a DVD rental franchise. DVDNow Kiosks disagrees.

What can an entrepreneur do to break into a tough market? Do a better job than the market leader. DVDNow offers a competitive advantage over Redbox by improving on their business model and providing better customer service and diverse revenue streams.

The DVDNow kiosk isn’t a closed box like a Redbox kiosk but instead displays available titles. Instead of having to wait in line to see what’s available and use the digital screen to scroll through options, customers can avoid frustration by seeing if what they want is available without having to wait. DVDs are also available in their own packaging so movie fanatics get a DVD experience that’s closer to what they’d have if they bought the DVD. If they’d rather buy it, customers can purchase their favorite movies directly from the kiosk. Instead of losing potential revenue to a retailer, DVDNow kiosks capture lost revenue.

On top of providing a better customer experience, DVDNow kiosks also have other revenue streams built into their design. DVD rental kiosks are often both in high traffic areas and attract high amounts of traffic as a destination. DVDNow franchisees can take advantage of this by offering advertising on the kiosks, either in the form of posters on the side panel displays or on the HD screen positioned to project messages to people passing by or waiting in line to rent a DVD. DVDNow asserts that the revenue from these ads can easily produce more revenue than rentals.

Franchisees of DVDNow can create their own empire of DVD rental kiosks in their own community, serving their area with local ads and tailored DVD selections. Keeping local dollars working for people in your community can be a huge selling point when you approach stores to place your kiosk. Stores like DVD rental kiosks because they bring in business, and a local franchise owner can have a real advantage over the market leader.

DVDNow franchisees go through a boot camp to learn how to run their franchises successfully and get technical and sales support to help them run and expand their network of kiosks, whether just two or two hundred.

The window of opportunity for DVD rentals may be closing — but it’s a real opportunity now, and one that can realistically be started with just one or two kiosks as a side job. As you build your network, you can drop the day job. That’s not an option with every franchise, but it is with DVDNow.

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