Vidbox Mexico is an automated retail kiosk that rents and sometimes sells DVDs, Blu-ray disks and video games. Vidbox will replicate the success Redbox has had in the US, but in the Mexican market.

1. México
Now Playing
Tijuana
Coming Soon
Guadalajara
Monterrey | Mexico City.
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2. Vidbox Mexico is an automated retail kiosk that rents and sometimes sells
DVDs, Blu-ray disks and video games. Vidbox will replicate the success
Redbox has had in the US, but in the Mexican market.
Introducing the Video Rental Revolution to Mexico
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3. • The first self-service video kiosks were developed in the early 80’s, but did not take
off with consumers until Redbox developed their automated retail system for DVD
rentals in 2003.
• Created by McDonalds as a way to bring people back to the store. It worked; they
found that 25% of returns resulted in a purchase.
• Redbox quickly became America’s destination for movies and video games. With
44,100 kiosks in 36,140 locations in the U.S., Redbox is the fun, fast, easy way to
rent DVDs and video games. It is fully automated video rental kiosk, contained in 12-
square feet of retail space.
• Kiosks are located where consumers already shop – leading grocery stores, mass
merchant retailers, drugstores, fast food restaurants and convenience stores.
• Redbox’s convenient Rent and Return Anywhere™ policy and simple touch screen
rental process makes movie and game renting easy.
• Now has nearly 50% of the rental market and growing rapidly due to convenience
and price point. 2014 Revenue was approximately $2 billion USD.
™Redbox’s and Rent and Return Anywhere™ are registered trade marks of Redbox Automated Retail LLC
Success of Redbox
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4. This illustrates the effect the automated DVD rental kiosk has on other
forms of consumer success.
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5. • First to market! Securing key locations forces
any future competitors to place kiosks in
lesser, lower traffic places.
• Establish Vidbox as “The” brand. All others
being imitators.
• Lead the trend. DVD rental kiosks are
replacing traditional video stores as the most
popular way to rent movies and games.
• Maximize results. Under performing kiosks
can easily be moved to more favorable
locations.
• Relatively little competition from traditional
rental stores and streaming technologies.
• The Vidbox Mexico business model is
efficient to allow for rapid growth, and
healthy profit margins.
• Perfect time to capture sales from the
growing middle class, lower prices on home
entertainment systems.
Vidbox Mexico Opportunities
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6. • Population of Mexico is nearly 115 million
• 13th largest economy in the world in nominal terms and the 11th by
purchasing power.¹
• Mexico has the world’s fifth highest cinema attendance, with 4,500
screens.(Twice as many as Brazil, a country nearly double its size.)
• DVD rentals currently trail ratios to sales due to lack of rental
locations.
• 90% of households have a DVD player with sales increasing year
over year.*
• ~70% adults have a credit or debit card.*
*Percentages higher in the urban markets where Vidbox kiosks will be placed
1 World Bank
Market in Mexico
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7. • Establish the “Vidbox” brand by having a
bright comfortable feel (kiosks, interface,
advertising).
• Strategically Place in high volume grocery
stores, convenience stores and fast food
franchises.
• National contracts with large chains.
• Best price point at 15 pesos per day,
• Roll out by city – Tijuana, Monterey,
Guadalajara, Mexico City.
• Install 1600 kiosks in the first year.
• Grow business to 4000 kiosks throughout
Mexico.
• Introduce new conveniences to
customers.
Strategy
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8. • Movie content is already in Spanish, including new releases.
• Many studios are eager to assist due to high piracy rates and are offering
favorable terms compared to U.S.(price, terms, release dates).
• Direct agreements with major studios facilitated by Redbox.
• Game content and some independent movie releases are obtained through
wholesale distributors.
• Content selections are directly driven by box office results.
Content Acquisition
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9. • Strategic store placement; front end;
entrance/exit; register 1
• Marquees and current release trailers on screens
• In-store posters and floor decals
• Television Campaigns.
• Promote new releases and other content
• Video game rental – promote “try before you buy”
(game rentals are higher price point)
• Drive traffic directly to store with “Find Your
Vidbox Here”
• Create awareness and customer comfort through
well lit kiosks, in a safe public area while adding
benefit to the retailer.
• Marketing staff available at new installs to
facilitate: brand awareness, ease of use, cost
benefits, and reduce fear.
• Website and mobile apps – locate nearest kiosks,
find particular movies, shows or games.
Marketing Plan
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10. Simply Put
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11. 1. Blockbuster and other rental stores
• Higher overheads, higher rental cost, less convenient
2. Netflix
• Limited streaming quality content, pay if you watch a movie or not
• Movies are typically not available until one year after their DVD release
• Requires quality high-speed internet service
• Requires a Netflix-compatible device to be connected to the TV
• Potential for playback hiccups (Not true HD)
• Netflix in Mexico is very different and limited content compared to the
USA
3. Streaming and On-demand
• Lack of high-speed infrastructure
• Average 5mbp vs. the USA 30 mbps USA speed, makes for very slow
downloads, and streaming.
4. Pirated content
5. Non-compete with Redbox for Mexico
Competition
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12. Metanoia Solutions
• Metanoia Solutions Inc. is a solution-driven software company, offering quality IT
services. To address the divergent needs of today’s industry, the value that they bring
to the table is “Execution Excellence”, and their ability to provide diverse IT solutions,
Technology and Service expertise.
• Converting and updating acquired software. Develop website, mobile apps, new
applications and management tools. Successfully completed most of the application
development for Redbox.
Nery’s Logistics
• Nationwide logistics and distribution company throughout Mexico. Distribution
centers in Tijuana, Hermosillo, Monterrey, Guadalajara and Mexico City.
• Imports equipment and content, provides infrastructure for warehousing and delivery
of kiosks. Provides office space and facilities for field staff.
Vidbox Mexico has created a team uniquely positioned to
successfully execute the plan with little to no learning curve
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13. Box Office Receipts – 5 Year Projections
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14. Credits
John Cathcart – Executive Producer
• 30 years of experience in financial markets and business development in several sectors,
spending many years in the logistics and distribution industries. Beginning in the early 80’s
sourcing venture capital for start up technology companies, then worked extensively in the
brokerage, investment banking and private equity sectors. Throughout his career John has had
a hands-on approach to strategic planning and implementation. John is currently the President
of Nery’s Logistics, a nationwide logistics and distribution company in Mexico.
Sandro Piancone – Executive Producer
• 20 years of experience doing business in Mexico. Dubbed the “Mexpert”, Sandro is well versed in
all aspects of importation, distribution and sales. Formerly the CEO of Mexico’s first nationwide
broad-line food distribution company, he has relationships with all major grocery stores,
convenience stores and fast food restaurants.
Mitch Lowe – Chairman of the Board
• Veteran of the video and entertainment industry with more than 25 years experience. Mitch Lowe
was named Chief Operating Officer of Redbox in 2005 and President in April 2009. Widely
credited for the development of low-cost, automated DVD rental, Lowe played a central role in
growing the Redbox network from 12 locations to more than 35,000 locations nationwide. Prior to
that, he helped to found Netflix, where he served as Vice President of Business Development. In
2002, Lowe helped to bring Netflix public.
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15. More Credits
Ricardo Vega – Director of Business Development
• 25 years of progressive and successful experience doing business in Mexico and Latin America.
Currently the CEO of H&V Consulting group. From 2009 – 2011 Ricardo created and developed
“GAMERS” a videogame retail chain in Mexico reaching a 20-25% market share. In 1991 he was
part of the original Blockbuster Mexico team for the initial market development. From 2006-2009
he lead the Blockbuster team as Senior VP and General Manager of Mexico and Latin America.
Daniel Ortega – Movie Locations
• 19 years of sales and marketing experience with multinational companies such as Unilever, M&M
Mars and General Mills. In the mid 90’s he developed the largest and most successful strategy
ever for Pedigree pet food in Mexico by taking the product to the most marginalized areas of the
Mexican population.
Brian Rady – Box Office Receipts
• 27 years of finance and accounting experience. As a co-founder of Redbox, Brian served 11
years during which time he helped Redbox grow from concept to 44,000 machines and $2 billion
in revenue. Brian was VP Finance for Redbox and served as the financial lead for the business
for the first 6 years.
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16. México
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