MovieQ: New Automated DVD Blu-ray Rental chain opens first test store - High-Def Digest Forums
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Old 04-20-2010, 03:10 PM
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Lightbulb MovieQ: New Automated DVD Blu-ray Rental chain opens first test store

MovieQ: Its a retail store front that likes a super 8 terminal automated kiosk that holds 15,000 disc behind the terminals in inventory. A video store inventory in a cheap rental space and is "designed to offer the same retail experience as a video store, but at a fraction of the personnel and space cost" Redbox like $1 a day rental pricing and $19.99 movies to buy. Blu-ray titles also in the stores.

Their online website for store 001 has Blu-ray Discs as well as DVDs

New Video Chain Opens First Store

By : Erik Gruenwedel | Posted: 20 Apr 2010
[email protected]

A Los Angeles media production company has launched the first of what it hopes will be a chain of automated stores selling and renting DVD/Blu-ray Disc movies and video games.

Point.360 earlier this month officially opened Movie>Q ( in Westminster, Calif., featuring 55-foot long “automated inventory management” (AIM) systems that hold up to 15,000 discs and are accessible via eight terminals. Movies and games can be rented for $1 per day and retail from $19.99 with a credit card and no membership.

With a $2 million investment, Point.360 said additional Movie>Q locations are opening in Costa Mesa (May 1) and La Mirada. A typical Movie>Q store is 1,000 to 1,500 square feet in size and designed to offer the same retail experience as a video store, but at a fraction of the personnel and space cost, according to Haig Bagerdjian, CEO of Point.360.

Bagerdjian said the concept was conceived to test the viability of the market being created by the closure of thousands of Blockbuster and Hollywood Video stores.

“The number of transactions and revenue has exceeded our expectations for this stage of the store's development,” Bagerdjian said, adding that an update on the stores would be given May 13 in a conference call with investors.
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Old 04-22-2010, 08:10 AM
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Have they considered that part of the reason is it's easier to find your movie and there are just more movies? I mean because of the sheer storage of the machines.
I'm referring to the last paragraph there. I must admit there's a certain nice randomness to a place like Blockbuster and coming upon a movie.
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Old 04-22-2010, 01:17 PM
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Wait... Point 360 is doing this? This is a post house...

Must be desperate for income.

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Old 04-23-2010, 12:28 AM
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This is a bid for a buy-out offer. No one wants to enter this industry in a big way... there's too much doubt to get a lot of funding from outside the industry. That means, it will come from in the industry. These guys are hoping NCR, Netflix, BB, or Redbox steps up and hands them a pile of money.
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Old 09-21-2010, 01:19 PM
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It looks pretty slick and has the larger variety and capacity than visiting a stand-alone kiosk. Yet, these locations will have to generate a significant amount of rental revenue to cover the overhead of a strip mall location. That includes location rental agreements, electricity (for heat and lighting) and insurance. Are these staffed by at least one person (presumably a fix-it guy for the kiosks)? Until these pop up everywhere, (if that happens) you will have to return to that exact same location too! Redbox has a distinct advantage over them in many ways.
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Old 11-02-2010, 12:04 AM
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Thumbs up Movie Q fan

As a person who has been in the Video/DVD/Video game rental/sales market, I just wanted to stop by and congratulate point 360 for creating one of the best ideas in the rental industry. The concept of having an automated inventory system that can hold up to 10,000 dvds/blue rays/video game is indeed genius! Those of you who do not understand the depth of the rental business, I feel sorry for you, because this is one of the best investment you can bank on right now (I put my money where my mouth is and bought A WHOLE LOT of their stock for my family weeks ago). I've been renting from redbox way before Movie Q was created, and 5 of the following things have always bothered me about Redbox, which I prefer over netflix btw.
(1) the long line you have to wait in at redbox even to return a movie , at movie Q locations, there are 8 kiosk machines inside and one located outside, which in return will move traffic a lot faster
(2) new releases are no longer available on release date at redbox, instead, you have to wait 28 days (this is the same for Netflix), however, movie q will have their new releases available on release of the market date (a clear advantage over netfix/rebox.
(3) the poor selection of old movies and the lack of quantity on new releases at redbox (movie q has approximately 10,000 titles of all kinds of films from foreign movies to rare titles available to take home upon request.
(4) When returning a dvd at redbox, the kiosk will often times jam and return my movie, therefore, delaying my return experience up to 5 minutes and frustrating the heck out of me and customers in line (this never happens at movie q because there are a ton of drop boxes inside and outside the store.
(5) redbox's video game rental is embarrasing, not even worth talking about, while movie q has tons of video game titles from consoles such as: wii, xbox360, PS3 to choose from.

As a huge movie buff, I wouldnt even touch Netflix, which is highly overrated in my opinion and stock prices at $170 a share is extremely overpriced. Don't bank your money on online streaming, its a niche market (and a small niche i might add, only about 2% of Netflix subscribers use streaming services), netflix had to pay over a billion dollars just for streaming rights through a few Hollywood movie production companies (not all, but only a few). Now, with that said, do some research and listen to Point 360 fourth quarter conference call, there you will see that point 360 are expected to roll out massive numbers of Movie Q stores within the next 6 months as they work on Phase 2 of their company expansion.

Many of you have seen Hollywood Video and Blockbusters go out of business in the past and might draw to the conclusion that brick and mortar stores are no longer relevant and that the new way of doing rental business is either by mail or small kiosk machines like redbox or online streaming. However consider this, the success of brick and mortar stores are contingent on a few of the following factors:

(1) The DVD rental business is still alive, and will be for years to come, otherwise, coinstar (rebox) wouldnt bank their money in so many kiosk.
(2) Despite the rise of netflix, they only have approximately 12 million customers (which is a whole lot, but leaves 300,000,000 other Americans/customers unaccounted for, so where do you think they rent their dvd/video games from)?
(3) A bulk of Netflix's cash flow are spent on mail orders and online streaming stunting their growth bc of those overhead expenditures (which can only rise due to cost of delivering DVDs such as stamps and printing envelopes), which is why Netflix are trying to steer the market to online streaming.

Online streaming is still extremely unattractive for movie watchers for the following reason:

(a) Poor selection, Netflix paid over a billion dollars to earn rights for online streaming. However, streaming rights are limited to a small number of movies from a smaller number of Hollywood movie production companies, which does not include new releases (this explains why Netfilx's online streaming catalog is still very limited). And to pay over a billion dollars to satisfy only 2% of your customer base, is a very bad decision (only 2% of Netflix's customers stream this is according to research done by
(b) Poor quality, ever stream movies on a PS3? The quality is pathetic. Even with an HD television, you cannot watch your blue ray or HD movies through streaming (our technology hasn't gotten that far yet, and will not for years to come). When my family and I get together for a movie, we don't want to watch it on a small screen computer monitor! We still prefer the old fashion way of watching it on the big screen, in the family room, with high quality and surround sound.
(c) Lack of technology Ever consider what will happen if more than 2% of Netflix's customer stream? Our internet servers will crash! We cannot possibly handle a million people streaming 2 hour movies online at the moment (which is why the quality of youtube's online streaming is so poor, bc too many people are streaming on their site).
(d) With the 28 day new release delay embargo act that Hollywood movie production companies have put on Netflix and Redbox, count on Netflix and Redbox losing their business to Movie Q. Moreover, according to ExecDigital, Hollywood companies such as Time Warner may put a 75 day new release delay on Netflix (can you imagine the amount of dissatisfied customers there will be once that happens)? In the rental business, its allllllllllllllll about the new releases! So unless Netflix pay more money to Hollywood, the embargo will not be lifted. This leads to my next concern, how can Netflix pay Hollywood more? By raising prices to its loyal customers (once that happens, goodbye Netflix).
(d) Tangible product of a DVD, when I spend $20 on a movie, I get a DVD or CD which is a tangible product that I can keep, store, burn, and perhaps sell on Ebay when I tired of it, etc. When I pay for streaming, I get storage, how do I sell storage? How do I bring a streaming device with me to my friends' house to enjoy a movie? How do I bring the huge streaming storage device on a plane or overseas? What happens if my storage device crashes--I lose everything! Streaming cannot possibly replace a tangible product like DVDs or CDs.

Now, The benefits of Movie Q:

Movie Q saves money by consolidating their business to only 1,000-1,500 square feet per store, and hiring only 1 store employee for Friday, Saturday, and Sunday. Average square ft per square inch paid nowadays is about $1.50 - $2.00, now utilities shouldn't cost much (everyone has to pay utilities and overhead cost when doing business--even Netflix and Redbox); however, Movie Q has minimize the amount of dollars paid to all overhead cost and are able to profit (even without advertising on a large scale at the moment), now imagine all the money they save from hiring employees to fetch, bag and mail their movies (something Netflix cant save on). This is not to say that Netflix and Redbox isn't doing well, in actuality, they are and I applaud them. But, the great thing about business is competition, the business with the best model will emerge victorious. With that said, In my non bias opinion, I believe that Movie Q has the best business model.

I've watched customers ignor both rebox kisoks at the Albertsons next to all 3 Movie Q locations and quess what? The lines at movie Q keeps growing and there are always customers inside their store (dont believe me, check out their locations yourself, and ask how their business are doing by checking in with local business owners around the area). But don't take my word for it, visit a store yourself, and you'll see what im talking about. Now of course, Movie Q is at their infant stage or stage 1 in terms of growth and expansion right now, which is great because their stock prices (PTSX) is still low last time I checked it was only $1.29 compared to $40 of Redbox and $170 of Netflix. Therefore, Movie Q blows up, their investors will laugh all the way to the bank. LOL go movie Q and congrats again! I will gladly challenge anyone who thinks otherwise. For the time being, I'll happily wait till Point 360 works on their expansion. Before I leave, Joe Mallugen, ex owner of Hollywood Video and Movie Gallery chain, an insider who clearly knows the business, is working with Movie Q to help them expand (something I came across while researching on Movie Q). The CEO of Movie Q has announced that within 6 months, they will line up their investors for an all out expansion of Movie Q stores in California, and once that happends, you can bet on expansions all across the U.S, and perhaps Canada, Europe, Japan, etc. And one last note, if Blockbuster goes out of business, millions of dollars will be up for grabs in the rental business, making the timing of Movie Q's expansion within the next 6 months perfect. If Blockbuster doesnt buyout Movie Q, its their lost not mines

P.S I am not an employee of Movie Q or affiliated with them by any means beyond being their customer, I am an investor who happened to stumble across Movie Q when my friends introduced "the coolest DVD store" in our neighborhood. After extensive research, I bought over 10,000 shares of their company. End of story

Last edited by jojo23; 11-06-2010 at 04:51 PM.
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Old 11-02-2010, 01:03 AM
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So you work for them?

That post rocks. Did the ENTER key break off?
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Old 11-02-2010, 01:51 AM
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The beauty of Redbox is that it is in very convenient places that I shop. Wal-mart, most local grocery stores, McDonalds, etc. I don't want to drive 5-10 miles to rent a movie if I can get one within a mile or two of my house. Especially since Netflix drops them off at my door.
That said, I like the selection....
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Old 11-02-2010, 02:04 AM
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Blockbuster inventory with Redbox convenience. Who would have thunk.
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Old 11-06-2010, 04:18 PM
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Haha thanks for reminding about the Enter button. I recently updated my post if you're interested in making a few bucks on their stock. And no im not an employee or affiliated with Movie Q by any means beyond being their DVD rental customer. Thanks for reading and good luck.
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