OAKBROOK TERRACE, Ill.-- DVD rental kiosk provider Redbox has started testing video game rentals in Austin, Texas, Wilmington, N.C., and Reno, Nevada, this week, according to Xbox 360 Digest. With a mix of Xbox, Wii and PS3 titles renting for $2 per night, the test indicates Redbox's interest in expanding from DVD's into other forms of entertainment, said the report.
The initiative has been rolled out to 150 kiosks units in those regions, according to GamePolitics.com, citing analysts familiar with the company.[image-nocss]
Oakbrook Terrace, Ill.-based Redbox Automated Retail LLC, a wholly owned subsidiary of Coinstar, Bellevue, Wash., offers new-release DVD rentals through its network of conveniently located, self-service kiosks. redbox has rented more than one billion DVDs and is available at approximately 24,000 locations nationwide, including select McDonald's restaurants, leading grocery stores and convenience stores, select Walmart locations and Walgreens locations in select markets.
In related news, Blockbuster Inc., the movie-rental chain currently under Chapter 11 bankruptcy protection, has launched a search for a chief executive that could see CEO Jim Keyes replaced before yearend, people familiar with the matter told The Wall Street Journal.
Keyes--who has led Blockbuster since 2007 after heading up Dallas-based 7-Eleven Inc.--remains a candidate to continue leading the company, they said, and the search is in its earliest stages.
The search firm, Los Angeles-based Korn/Ferry International, could look at candidates for other executive posts as well, the people said. Blockbuster needs approval from the bankruptcy court to hire the firm.
A company spokesperson told the Journal the company is "moving forward with what is consistent with our public disclosures and the requirements of the recapitalization plan. Jim remains fully engaged and committed to the business and the plan. This includes active participation in any evaluation of potential CEO candidates."
Dallas-based Blockbuster filed for bankruptcy protection September 23, with more than $900 million in debt.
The board in July extended Keyes' contract for one year with an understanding that he would oversee the company's restructuring and that a successor would likely be identified at some point, said one of the people familiar with the matter.
A person close to the situation said Keyes (pictured) supports the search for a potential successor, the report added. Blockbuster is aiming to establish a robust succession plan regardless of whether Keyes remains with the company, the person said. Whether Keyes is replaced depends on the company's direction coming out of bankruptcy, the person said.
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