page_title: Redbox
section_title: Kiosk design and operation
hierarchical_section_title: Redbox / Services / Kiosk design and operation
caption_attribution_description: English: A Redbox DVD case
context_page_description: Redbox Automated Retail LLC is an American and Canadian video rental company specializing in DVD, Blu-ray, 4K UHD rentals, and formerly video games via automated retail kiosks. Redbox kiosks feature the company's signature red color and are located at convenience stores, fast food restaurants, grocery stores, mass retailers, and pharmacies.
  As of the end of November 2012, Redbox had over 42,000 kiosks at more than 34,000 locations. As of September 2016, Redbox had 51.8% market share of the physical rental market.
context_section_description: Redbox began in 2004, using re-branded kiosks manufactured and operated by Silicon Valley-based DVDPlay, at 140 McDonald's restaurants in Denver and other test markets. In April 2005, Redbox phased out the DVDPlay-manufactured machines and contracted the Solectron facility in Creedmoor, NC — later purchased by Flextronics International, in October 2007 (Flextronics is also known as the manufacturer of the Zune, Xbox and Xbox 360) — to create and manufacture a custom kiosk design. The new kiosk was designed by Flextronics' Creedmoor design team, which included engineers Steven Hancock and John Rupert as key contributors under the direction of Franz Kuehnrich at GetAMovie Inc. (which was bought by RedBox). Other key contributors from Flextronics included Flextronics Global Account Manager Dave Stadelmaier and Global Supply Chain Manager Ben Wheeler (The KioskGuy).  Redbox was innovative in that its carousel design not only decreased the number of robotic movements necessary to dispense and restock inventory, it also dramatically increased the number of discs (from 100 to 700+)  that could be stored within a kiosk. In addition, the software, designed and developed by Enterprise Logic Systems, was also innovative in that it allowed RedBox to remotely monitor and manage inventory at all kiosks throughout the country.
  The company's typical self-service vending kiosk combines an interactive touch screen and sign. It uses a robotic disc array system containing a stacked carousel of DVDs and web-linked electronic communications.  Kiosks can be located indoors or out and can hold more than 600 DVDs with 70–200 titles, updated weekly.  The kiosks are built as modules, and in areas with higher sales figures, a second machine can be connected to the first one in order to offer a wider selection. The customer pays with a credit card or debit card. DVDs can be returned the next day to any of the company's kiosks; charges accrue up to 25 days, after which the customer then owns the DVD (without the original case) and rental charges cease. Customers can also reserve DVDs online, made possible by real-time inventory updates on the company's website. While customers can buy used DVDs from the kiosks (with unsold used DVDs returned to suppliers), Redbox estimates only 3% of the company's revenue comes from used-disc sales.
  A Redbox kiosk rents its average DVD 15 times at an average of $2 per transaction plus any applicable taxes.
caption: A Redbox barcoded DVD tray, delivered by and returned to the kiosk.
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