DVD Rental Kiosks
According to Kiosk MarketPlace, Business is brisk for DVD rental kiosks. James Biker, the editor, writes:
"The video rental business changed the way consumers watch movies. Today another revolution is underway, changing the way consumers acquire and view their chosen films.DVD rental kiosks performed well in 2005, with several companies jockeying for position in the newly formed space. DVDPlay reported a growth of 200 percent from the previous year, as well as an infusion of $20 million in venture capital from El Dorado Ventures. The company rented its 5 millionth movie in June 2006."
What is the significance of this for business opportunities fraud? DVD rental units will been seen by consumers at McDonald's and other fast food locations fairly soon if the Redbox rollout is successful. Just like private payphones, atms, internet kiosks, dvd rentals will be the next big distributor scam in several years. It has all the elements of a perfect scam: a billion dollar industry with "easy" to count vending turns, easy to steal reputational capital - "as seen in McDonald's", and a compelling story, even if there is not compelling business. Can't wait.
Technorati Tags: internet kiosks, dvd rental, consumers, dvdplay, private payphones, el dorado ventures, rental business, films dvd, dvd rentals, marketplace business, watch movies, dollar industry, food locations, redbox, atms, brisk, rollout, infusion, previous year, venture capital
Comments
The reason why DVK Kiosk rentals will be one of the next biz op frauds is that they have all the necessary characteristics for a criminal to mimic genuine success stories.
The criminal will point to McDonalds use of Redbox, do some dubious calculations based on "industry numbers" of DVD rentals, and promise exclusive territories.
Since there is no self regulation in the kiosk industry, this scam will work for about 4 to 5 years.
I guarantee you that certain individuals living in Florida are now putting a biz op scam together using this model.
Posted by: Michael Webster | September 26, 2006 9:32 AM
I think that the potential for fraud exists with any business opportunity in any industry and I'm confused as to why you specifically pointed out the DVD kiosk industry. Undoubtably there is a growth story here and it is a new challenge to the existing video store, but is Safeway really going to get ripped off by TNR Entertainment when the company has been deploying DVD kiosks for almost five years now or are you really talking about the host of do it yourself competitors that have emerged over the last two years?
Fraud may end up being an issue here, but I'd rather see some concrete examples of how the kiosk industry is being manipulated rather than just doom and gloom. The DVD kiosk is in a young industry and there will be a whole host of competitors to emerge as the potential for vending distribution begins to be realized, but at this point, I don't think that we've seen a wide spread abuse of fraud in the industry and rather then saying that the sky is falling, I'd rather see you point to which actors are engaging in questionable ethics and call them out directly.
Posted by: Davis Freeberg | September 18, 2006 11:23 AM