DVD Rental Kiosk Owner Completes $10 Million Funding
HOUSTON -- TNR Entertainment Corp. here, the largest U.S. owner/operator of automated DVD rental kiosks in major grocery stores, under the name "The New Release," has completed the sale of $10 million in preferred stock to New York-based D.E. Shaw Laminar Portfolios, LLC, a member of the D.E. Shaw group, a leading specialized investment and technology development firm with about $19 billion in aggregate capital.
The New Release intends to use the capital to fund an aggressive expansion of its retail locations next year, with the goal of more than doubling the number of DVD rental kiosks while entering new geographical markets, said TNR c.e.o. Richard B. Cohen in a statement. Proceeds will also to be used to expand the infrastructure needed to support the company's planned growth.
"This funding means we can satisfy the pent-up retail demand for our kiosks while accelerating the rollout in new markets nationally," noted Cohen.
The privately held company said it dominates the grocery store channel for DVD distribution, currently serving more than 100,000 customers monthly in five states. The company has agreements with such food retailers as Kroger, Safeway, HEB, and Publix, representing a total addressable market of more than 20,000 locations.
TNR's kiosk-based rental model lets consumers rent DVDs in a more convenient way -- at their local supermarket -- than in separate brick-and-mortar retail locations or mail-based subscription formats. Additionally, with rentals ranging from 50 cents to $1.50 a day and no late fees or penalties, the model provides great value to consumers. The company's kiosks contain about 200 top movie titles and store a total of 400 to over 1,000 DVDs in inventory, in a store footprint about as small as seven square feet.
Since the formation of TNR in 2002, the company has been responsible for several firsts in the kiosk-based rental industry, among them development of the first all-wireless kiosk, the first DVD-only kiosk, an innovative pricing structure, and specialized software.
The New Release intends to use the capital to fund an aggressive expansion of its retail locations next year, with the goal of more than doubling the number of DVD rental kiosks while entering new geographical markets, said TNR c.e.o. Richard B. Cohen in a statement. Proceeds will also to be used to expand the infrastructure needed to support the company's planned growth.
"This funding means we can satisfy the pent-up retail demand for our kiosks while accelerating the rollout in new markets nationally," noted Cohen.
The privately held company said it dominates the grocery store channel for DVD distribution, currently serving more than 100,000 customers monthly in five states. The company has agreements with such food retailers as Kroger, Safeway, HEB, and Publix, representing a total addressable market of more than 20,000 locations.
TNR's kiosk-based rental model lets consumers rent DVDs in a more convenient way -- at their local supermarket -- than in separate brick-and-mortar retail locations or mail-based subscription formats. Additionally, with rentals ranging from 50 cents to $1.50 a day and no late fees or penalties, the model provides great value to consumers. The company's kiosks contain about 200 top movie titles and store a total of 400 to over 1,000 DVDs in inventory, in a store footprint about as small as seven square feet.
Since the formation of TNR in 2002, the company has been responsible for several firsts in the kiosk-based rental industry, among them development of the first all-wireless kiosk, the first DVD-only kiosk, an innovative pricing structure, and specialized software.