Redbox Automated Retail LLC was founded in 2002 when McDonald’s Corporation put four automated grocery kiosks selling milk, eggs, and other necessities as well as 11 DVD rental kiosks in a Washington, DC, metropolitan area.
The company withdrew the grocery kiosks within a year, but the DVD rental kiosks were a success.
In 2005 Coinstar bought 47% of the company for $32 million.
In 2008 Coinstar exercised an option to increase its ownership share from 47% to 51%.
In 2009 Cointsar bought out McDonald’s and other shareholders for $170 million to become sole owners of the company.
Redbox rents DVD and Blu-ray discs as well as video games through its distinctive red kiosks. Movies are $1.20 per night and video games cost $2.
Redbox is a fast-growing business with 43,700 kiosks across North America. Redbox has 47.8% of the market share for the physical rental market. The company’s biggest competitors are Blockbuster, Netflix, and GameFly.