Patrick Avery is the former editor of Self-Service World and Kiosk Marketplace. To submit a comment about this article, please e-mail Tracy Kitten, a senior editor of Self-Service World parent, NetWorld Alliance.
DVD-rental kiosks are much like other vending devices, says Rebeca Chan.
The definition of vending has blurred in the past couple of years — moving beyond its narrow definition as a mere third-party placement in a high-traffic retail location to one that includes a more rounded view of self-service.
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Self-service, too, has expanded in its scope. Traditionally self-service was defined by the elimination of human interaction: ATMs replacing tellers; kiosks replacing airline-check-in attendants; and retail self-checkout replacing cashiers. Today, it tends to focus more on the transaction itself and what it offers the user.
But the distinction between self-service and vending is becoming less defined, says Chan, director of marketing for MovieMate. (Click here to download "DVD Rental Kiosks," sponsored by MovieMate.)
"Traditional vending operators are evolving and looking to self-service as a way to increase their reach and profits," Chan said.
Those most interested in DVD kiosks are retailers and traditional vending operators, as well as the new breed of kiosk entrepreneurs. The evolving needs of this growing industry have placed new demands on kiosk manufacturers just to keep up.
MovieMate was founded in 2004 with an exclusive focus on creating DVD-rental and vending kiosks.
"DVD-rental kiosks were becoming a must-have for any big-box retailer, superstore or grocer," Chan said. "It was obvious that the current machines in the marketplace were not well-suited for what we saw to be the growing need."
The early machines were fairly primitive in terms of technology, as well as very bulky and space consuming.
With a smaller footprint, MovieMate's automatic DVD-rental machines can be placed virtually anywhere and offer a high level of convenience to store customers. With in-store customer visits on decline, DVD kiosks bring value, Chan says.
Retailers have the option of offering rentals, selling DVDs or both. This is good news for stores looking to find new customers or simply to retain those they have.
"One of our primary goals was to make the customer experience as fast, easy and familiar as possible," Chan said. "In order for technology to connect with people, it has to meet those needs."
For MovieMate, its design is its selling point.
MovieMate's Internet-enabled kiosks come standard with glass facades — offering what MovieMate says is a one-of-a-kind glass front that catches consumers' attention. The kiosks resemble snack vending machines, so customers can see the DVDs behind the glass before they decide to rent or buy.
"Customers prefer to see the product; that is how people are most comfortable shopping," Chan said. "We don't attempt to change the customer's purchasing habits; we designed the kiosk to fit the way they currently shop."
Displaying the product breaks the ice with customers, Chan says. When they can't see the product, consumers often are skeptical about what actually is inside the box, and therefore are much less likely to buy.
User interface also is critical, since consumers often shy away from machines that look too complicated. While most kids gravitate to computers like candy, adults avoid contact.
"The purpose of technology is to make people's lives better and easier," Chan said. "Our machines are friendly and inviting, and really easy for anyone to use — making it possible to attract the widest range of customers."
Additionally, MovieMate uses digital signage that retailers can control to promote DVD rentals and sales to lure users in.
DVD rental and sale pricing also makes a difference, with aggressive self-service DVD-rental pricing coming in about 70 percent below what traditional video stores charge. Low, competitive pricing is the reason the industry has seen companies like DVDPlay continue to experience rapid growth, experts say.
"The overwhelming response from the public is indicative that our kiosks are important to moviegoers who want convenient access to affordable entertainment," said Chuck Berger, DVDPlay's chief executive.
Unlike brick-and-mortar retail outlets, DVDPlay kiosks combine innovative technology and seamless customer experience without the need for significant retail space or manpower — paving the way for a lower pricing structure. When combined with plenty of traffic, the kiosks are a win-win.
"By eliminating the labor and overhead of a traditional rental store, kiosk operators can easily afford to charge less and effectively compete with the rental giants," Chan said. "Combining convenience and lower costs makes for a very powerful marketing punch."
