THE MARKET
THE GROWTH OF DVD VENDING
THE MOVIE BOOTH ADVANTAGES
KEY SYSTEM FEATURES
PROFIT FORECAST PER KIOSK
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THE BUSINESS OPPORTUNITY
The Movie Booth is leading a revolution in the movie rental market in the UK and Ireland with a rapid growth in 2008 through the deployment of machines across the both nations via established key partnerships with leading retailers and operators.
With traditional rental stores disappearing due to the high costs involved in operating this business model along with their non convenient locations and high rental prices, The Movie Booth has seized a unique market opportunity by installing their state of the art, fully automated vending solution into convenience locations across the UK and Ireland. You can choose from hundreds of titles at every conveniently located machine and you will only pay £2/€3 per 24h rental - no late fees, no hassle.
Our fully automated movie rental kiosks is the product of 25 years market experience, with over 8000 kiosks currently in operation across the globe. With the demise of the traditional rental store, we expect this number to rapidly multiply over the next few years. Using a simple end-user touch screen, our customers are able to rent the latest movie releases whenever they wish. In the DVD rental market PRICE+CONVENIENCE= SUCCESS, and we feel we can offer price, convenience and success in abundance.
The Movie Booth offers an ideal complement to existing businesses such as convenience stores, supermarkets and off-licenses or a fresh business opportunity that requires no premises, on-site staffing or maintenance from you. Whichever option you were to proceed with, our dedicated team support you in every stage of the business.
At The Movie Booth, we are extremely excited about what our future holds, and we hope that you can be a part of our bright future.
THE MARKET
The UK DVD rental market is valued at a massive £330m
The UK has the highest DVD rental consumption in Europe
10 Million adults rent DVD’s in the UK on a monthly basis:
- 24% Rent 4 or more times a month
- 36% Rent 2 or 3 times a month
- 39% Rent 1 time a month
The traditional video store is becoming obsolete due to the high fixed costs involved, thus giving a huge market gap to The Movie Booth and our partners.
THE GROWTH OF DVD VENDING
- In 2007 Executive Director of Self-Service & Kiosk Association, David Drain, gave his professional opinion on the future of automated DVD rental kiosks:
“If I had to pick the best use of self-service at the moment, I would have to go with DVD rental kiosks. While not new, I think the potential is tremendous. These kiosks are perfect for high-traffic, high-frequency locations such as grocery stores, restaurants, laundromats, apartment complexes, college campuses and airports. I think these kiosks really will hit their stride in 2007 and could become nearly as ubiquitous as the photo kiosk.”
- In February 2008, Reuters highlighted the benefits of DVD vending and its success in the USA:
"Consumers are constantly looking for convenience. Whoever offers that stands to gain market share,“ Redbox, owned by Coinstar Inc, McDonald's Corp and private investors, is the leader in the growing in-store kiosk space, followed by privately held TNR, which operates 2,200 kiosks, and privately held DVDPlay, with 1,000. "This market's barely on the cusp of its growth potential," said Tim Belton, chief executive of TNR. "We view some systemic problems in the traditional business of retail-based rental, which will drive profit problems in that channel“
- As of March 2008 there were approximately 10,200 DVD vending kiosks in operation across the USA, with a market value of $198million represented through almost double the number of DVD kiosks in operation as there are Blockbuster stores currently open in America.
THE MOVIE BOOTH ADVANTAGES
- Compact size that only requires 1/2 sq m of floor space (less than a single door Coca-Cola fridge).
- Whilst being so compact, the storage capacity is a sizeable 621 DVDs – similar to a DVD rental store.
- A Pay Per Hour system is used which enables owners to offer the best prices.
- The machine offers the ability to rent or sell any product in disc format (ready for HD-DVD/Blu-Ray).
- Our fully automated system means no on-site staffing or maintenence is required.
- Management operations are controlled remotely from any internet live area.
- All transactions are completed using credit/debit card, meaning no cash handling.
- Our credit/debit card payment system gives maximum security to you and your customers.
- Prime locations are negotaited and secured on your behalf by The Movie Booth.
- Confidential rental and purchase of all products for your end users.
KEY SYSTEM FEATURES
- Touch screen
- Multi drop system
- Credit/Debit card ready
- Maximum capacity of 620 titles
- Minimum size
- User friendly interface
- Remote management
- Fully automated
PROFIT FORECAST PER KIOSK
|
Year 1
|
Year 2
|
Year 3
|
|
|
Sales
|
£34,983
|
£38,750
|
£38,750
|
|
Overheads
|
£14,457
|
£15,826
|
£12,826
|
|
NET Profit
|
£16,934
|
£18,912
|
£18,912
|
Notes and Assumptions:
Overheads include: stock (20% monthly revenue), advertising, insurance, consumables, merchant service and finance (calculated at £399 per month over 3 years)
Rentals rise from 22 per day to 36 per day by month 6 then stay consistent throughout as an average