Redbox Inks Digital Video Signage Deal for Kiosk Promotions

Redbox is using digital video signage atop more than 2,000 kiosks in the U.S., on the way to an expected 4,000, said the DVD rental provider Thursday. The displays are designed to be used by Hollywood studios to promote new releases, to push Redbox's own streaming media service and to display local advertising. Redbox partnered with Velocity, which will source, operate and support the signage network. Initiating coverage of Redbox Monday, Wedbush analyst Michael Pachter called Redbox a “compelling, long-term growth story,” due to its 39 million loyalty members, “as many of them are late technology adopters and Redbox makes the transition simple and inexpensive.” Redbox should also benefit from the ongoing share shift from linear broadcast to ad-supported VOD services, Pachter said.