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Another sign that the issue isn't just a bad few months of movies is that Outerwall now expects to close out the year with as many as 700 fewer Redbox kiosks in operation in the U.S. market.
Redbox Automated Retail LLC was initially developed in Chicago as a part of “Project 361”, a McDonald's business expansion initiative. John Sexton Abrams, a strategy executive at McDonald's, designed the original concept as an immersive kiosk leveraging McDonald's product supply chain and geographic footprint to provide 24/7 access to fresh dairy and other products.
Universal was concerned that DVD kiosks jeopardize their profits from DVD sales and rentals, so they pressured VPD and Ingram, two of Redbox's major film distributors, to stop distributing to Redbox unless Redbox signs a Revenue Sharing Agreement to only obtain DVDs directly from Universal and only after 45 days of initial DVD release.
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Founded in 2002, The New Release focused primarily on the grocery channel. The first kiosks were installed in Houston, HEB locations, with later expansion into Dallas, Kroger locations. [6] Acquired by NCR in 2009, its kiosks eventually became the property of Redbox when Redbox acquired all of NCR's DVD rental kiosks in 2012.
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Redbox, founded in 2002, is best known for red-colored, self-serve machines that sit outside of pharmacies or groceries stores to rent or sell DVDs. In Friday's filing, Chicken Soup for the Soul ...
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