Am I the only one who wonders how Redbox makes money??
$1 a day rentals with so many other players in the game(online,major chains, independent stores and kiosks).
If you think about it the credit card processing fee can't be low as the companies hate low charge amounts so that is hitting them.
I know a guy who works for Redbox and said he fills 10 machines and makes right at $30K a year.
So that is over $200 a month per machine to an employee.
He said they pay rental space on average between $300-$400 a month to plug in and have box on site.
As of late they were paying full retail for 3 major studios($18+).
So Redbox is $500+ a month in the hole before they rent a movie, pay the CC process fee, or even buy the movies.
They are paying full retail on 3 major studios right now. So lets say they have to buy 8 major titles and get 8 copies of each. That is $1,152.
That means they have to rent 1650+ dvds a month to break even and that doesn't in CC fees. 55 a day average. You are kidding yourself if you think they avg. 55 rentals a day.