Renting movies from a machine
Published 5:00 am Monday, April 30, 2007
- John Traylor, of Bend, checks out the titles listed on the new DVD rental kiosk at Albertsons in Redmond on Saturday. The machine, operated by Redbox Automated Retail LLC, charges users' credit or debit cards $1 a day, up to a maximum of $25.
Starting this week, Central Oregonians looking to rent DVDs will be able to do so without talking to another human being- as long as they have a credit or debit card.
Albertsons officials said their Redmond supermarket installed an automated DVD rental kiosk, operated by Oakbrook Terrace, Ill.-based Redbox Automated Retail LLC, Saturday afternoon.
The device is among the first of its kind in Central Oregon, and one Oregon business management expert said the move is logical, considering the increasing use of automated devices like ATMs and the service-level labor shortage in many cities in the West, including Bend and Redmond.
Redbox considered those factors when it decided to roll out the machines in more than 350 Albertsons stores starting earlier this month, said Greg Waring, vice president of marketing with Redbox.
”I think the timing is perfect in two ways,” Waring said. ”For one thing, the tight labor situation is not uncommon around the country. So an automated technology, combined with the shortage of labor, is good timing. (A staffed rental desk) takes up a lot of space and dedicated staff, and with the Redbox, that can all be replicated by one 2 feet by 6 feet location.”
The machine lets consumers swipe their credit or debit cards and retrieve their DVDs. Cards are charged $1 daily up to a maximum of $25. Customers also can check the inventory of titles in the machines online, Waring said.
”All the machines are networked, so people can check in real time the balance of inventory at any time,” he said. ”Our overall strategy is to offer unbeatable convenience and value. If you can use ATMs, you can rent our DVDs, and customers don’t have to make another stop (beyond going to the grocery store) to get their movies.”
Bend rental store Westside Video used to have a similar machine under previous ownership, but the machine is no longer there. Currently, most rental stores in the area maintain manned kiosks at store locations, including one of the two Albertsons stores in Bend.
The Bend stores are being remodeled and Redboxes won’t be deployed there until June or July, according to Albertsons officials.
Donna Eggers, communications manager with Albertsons Intermountain West Division, said the automated machines are a key part of improving efficiency without hiring more people.
”(The Redboxes) will remove one of the duties of our customer service associates, which will enable them to devote even more of their time and attention toward serving our customers,” Eggers said.
Jack Drexler, chair of the Management, Marketing and International Business Department at Oregon State University’s College of Business, said the key to whether the machines succeed is the public’s acceptance of automated processes.
Considering the popularity of devices like ATMs, the decision by Albertsons to add Redboxes makes sense, Drexler said.
”Some people are clearly comfortable using automated services,” he said. ”I don’t know if anyone prefers it, but it certainly could be faster (compared with in-person services). Machines have the reputation of being more reliable and, depending on their costs, they also could be the more cost-effective option for businesses.”
Redbox’s Waring said his company isn’t done. The firm plans to roll out Redboxes in 145 McDonald’s restaurants in Oregon in June.