The Illinois-based company, Redbox, is hoping that their kiosk business model will revive the DVD rental industry in Canada as they plan on rolling out their kiosks over the next year.
Redbox could very well become a fierce competitor, according to Huffington Post. One of the reasons is that the DVD rental model of $1.50 per-day is something that is pretty much uncommon in Canada.
Redbox has agreements with with Canadian Walmart stores, where the kiosks will be set up. Redbox's kiosks will also be set up at convenience stores that are operated by Alimentation Couche-Tard Inc.
According to Edmonton Journal, Ron Cihocki, the head of Redbox's operations in Canada, said that the company took a look at Canada and realized that the country was the third largest country in the world when it comes to DVD rentals. .
Cihocki went onto say that you need to be a pioneer and have fun with a brand that already has a very strong presence in the United States.
According to CanadianBusiness, the company was founded a decade ago. Today Redbox is one of the most popular entertainment options in America. The company has also just passed 2 billion rentals.
A study that was done showed that nearly half of Canadians have rented six to ten movies in the past three months, which suggests that Canadians may be enthusiastic about Redbox's kiosks.