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    10% of $9 Billion Rental Market Could Soon Shift to Kiosks: Survey

    HOUSTON -- The first-ever comprehensive national survey of the burgeoning DVD rental kiosk industry sector, from TNR Entertainment Corp. here, the largest U.S. owner of such kiosks in supermarkets and grocery stores, has found that 60 percent of current DVD renters are interesting in renting from self-service DVD movie rental kiosks. Based on current consumer and retail market dynamics, this figure represents a potential market of close to $1 billion accruing to this sector over the next five years, applying selected data from the survey.

    HOUSTON -- The first-ever comprehensive national survey of the burgeoning DVD rental kiosk industry sector, from TNR Entertainment Corp. here, the largest U.S. owner of such kiosks in supermarkets and grocery stores, has found that 60 percent of current DVD renters are interesting in renting from self-service DVD movie rental kiosks. Based on current consumer and retail market dynamics, this figure represents a potential market of close to $1 billion accruing to this sector over the next five years, applying selected data from the survey.

    "There are several compelling factors supporting this significant migration from conventional rental venues," said TNR c.e.o. Richard B. Cohen. "In addition to the strong national consumer interest highlighted in the survey, we have proven consumer demand in existing kiosk installations, exploding retailer adoption of the kiosk rental model and the thousands of potential retail rooftops nationally -- which translates into millions of future transactions."

    Added Cohen: "This survey further validates the significant business opportunity we see for movie rental kiosks as a viable alternative to 'brick-and-mortar' and online rentals. Our kiosk concept offers the appeal of impulse rentals with a substantially lower cost structure than the store-based model."

    Further survey findings included:

    --Grocery retail-based DVD rental kiosks have broad consumer appeal among men and women of all ages and life stage classifications, particularly those 30 to 54 years old, and families with children.

    --The rental kiosk value proposition is driven by both convenience and lower movie rental costs.

    --About one-third of all consumers surveyed were aware of the self-serve DVD kiosk concept, but only 5 percent of the respondents had rented through one. Awareness and rental usage in more developed markets were significantly higher.

    -- Kiosk adopters would most likely migrate from traditional "brick-and-mortar" rental sources to the grocery or rental kiosk.

    -- Over 1/3 of DVD renters are frequent grocery shoppers, with many visiting their grocery store daily.

    At TNR kiosks consumers can rent the latest DVD titles for $1 a day with no late fees The fully automated kiosks, which house up to 1,000 units each, representing over 200 titles, including popular new releases, operate on a wireless communications network and next-generation DVD kiosk-operating system.

    TNR currently has more than 1,500 locations in such grocery chains as A&P, Dillon's, Food-4-Less, Food Lion, Fry's, HEB, Kroger, King Soopers, Publix, Quality Food Centers, Ralphs, Roundy's/Pick 'N Save, and Spartan/Family Fare. The company's aggressive growth plans call for continuing national expansion of its retail locations, in addition to the threefold increase of its kiosk network planned by this year-end.

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