Redbox to Expand Into Live-Event Ticketing
NEW YORK -- Coinstar Inc. will broaden its Redbox business by offering event tickets for sale at DVD kiosks for a flat fee of $1, according to the Wall Street Journal. The program is launching at all 650 Philadelphia kiosks as well as online this month, and will expand to Los Angeles in early 2013.
The $1 fee will apply to all tickets regardless of their price. Tickets will be sold at face value or below. Some of the initial events Redbox is ticketing include a Carrie Underwood concert and NASCAR events, plus local Philadelphia entertainment.
The new business adds "unquestionable longevity" to the company by extending into a form of entertainment in which its customers are already active, said Redbox President Anne Saunder to the WSJ.
"I see no reason that this is not something that could expand more broadly," Saunder stated.
The move into event ticketing positions Redbox as a competitor to industry giant Ticketmaster, which charges higher fees that vary by event. However, Redbox will also focus on offering tickets to smaller local entertainment such as museums, zoos and state fairs in order to differentiate itself, said Mark Achler, senior vice president of new business, innovation and strategy for Redbox.
Redbox has 38,500 kiosks nationwide, many of which are located at convenience stores.
The new ticketing business may ease investor worries over the limited lifespan of Redbox's physical kiosks, which lost the company a third of its market capitalization in three months, according to the report. In Feb. 2012, Redbox partnered with Verizon on a deal to allow customers to download streaming content online. Redbox also offers video game rentals.