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The redbox subsidiary had 30200 dvd kiosks in 26100

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the Redbox subsidiary had 30,200 DVD kiosks in 26,100 locations in every state and Puerto Rico.Interestingly, Coinstar reported a strong seasonal pattern in DVD rentals where rentals are high in the
summer and lower in September and October. In addition to paying a percentage of revenue to the retaillocations, Redbox has licensing agreements with the major studios. In 2010, those agreements restrictedthe availability of DVDs to no sooner than 28 days after the DVD be-comes available for purchase. Feesfor vending machine systems like Redbox were set to increase in October 2011 when debit-cardprocessors changed their pricing method. Instead of focusing on a percentage of revenue, the new feestructure emphasizes a fixed $0.24 per transaction cost plus a small percentage of revenue. Largemerchants such as Coinstar can negotiate the fees—but only up to a point.Blockbuster TechnologyBlockbuster’s original barcode checkout system was written for a Digital Equipment CorporationMicrovax running FORTRAN code. The checkout terminals were simple DEC terminals. Each Microvax wastied to a Digital cashier system, printers, a manager's workstation, and a modem. Blockbuster Video wasnot online. Each store was called by the corporate headquarters twice a day. Blockbuster maintained thisarrangement because it was simple, solid, reliable, replicable, and consistent. As the CIO of Blockbusterin the 1990s, H. Scott Barret’s goal was to keep the organization “technology appropriate.” He believesthere is a “herd mentality” about client-server systems and publicly questioned the financial return onthis additional investment. In his opinion, many companies are pressured to implement client-server bythe collective weight of hype issued by the press and vendors. In 1990, Blockbuster planned tocategorize its 30 million customers according to the types of movies they rented and to “sell informationfrom the database ... to direct mailers, for planning target-marketing campaigns.” Blockbuster usedsophisticated computer systems to keep records of each individual's transactions. The plans raiseddifficult privacy issues for the same reason it would prove to be a gold mine for direct mailers. Videochoices are among the most revealing decisions a consumer makes [Wall Street Journal 1990]. While afederal law forbids video stores from disclosing the names of the movies its customers rent, it does notforbid stores from telling direct marketers “the subject matter” of the movies a customer has rented.Blockbuster, whose members represent one out of six American households, says its database will belegal because it monitors video categories, not specific titles. In 1990, the chain organized its shelves by37 categories, with plans to add 30 to 40 more.Blockbuster ultimately implemented client-server, to recapture the major benefit offered by its legacysystem, a consistent retail systems architecture. In 1994, Blockbuster acquired a music store businessthat ran different systems and had different requirements than its video stores. The music stores came

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Term
Summer
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Tags
Blu ray Disc, Blockbuster video

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