DVDNow is one of the latest entrants in the automated DVD rental kiosk industry. You will need at least $20,000 in liquid assets to start this franchise. DVDNow claims to have an established market presence throughout the US and also claims to be one of the fastest growing segments in the entertainment industry.
So is DVDNow the right franchise for you? Here’s a simple review:
Automated DVD rental kiosks already outnumber video stores in the United States, and DVD rental kiosks are expected to double in the next two years. Also, in tough times we tend to look for bargains on entertainment. DVD rentals have risen more than 5% quarterly since the 2008 recession, driven by budget-minded consumers looking for affordable entertainment.
Additionally, DVD rental kiosks offer the convenience of a vending machine. DVDNow research indicates that consumers prefer to rent a first-run movie when it’s quick and convenient. DVDN claims that rental kiosks are best when displayed in supermarkets and convenience stores, gas stations, etc. This allows movie renters to rent a DVD without making an extra stop or two on the way home.
It is important to do your due diligence on any franchise opportunity. How big is the market? Is there still room for growth and new competitors, or has the market peaked? How will it compete with big corporations like Redbox or MovieCube? Does the aforementioned video game and Blu-ray DVD rental give you a significant competitive differentiator?
Also, I think it’s time for some simple math. At $20,000 for the franchise, how many total rentals are needed to break even on your investment? You should consult with your CPA regarding these and other business-related questions before you bark about your franchise investment.
I’m sure DVDNow must provide some form of internet marketing, however you should find an internet marketing mentor and consultant to help you brand yourself and your business. The cost of this is relatively low compared to the initial costs of the franchise.
In short, it is my humble opinion that this is a legitimate business model. Only you can decide if you have enough bells and whistles to distinguish yourself in a mature market.
Through proven training and consistent effort, Kevin A. Ewing is constantly transitioning from top marketing manager to successful entrepreneur and online business owner.