Redbox Driving Games Sales Through Rentals

According to this [A]ListDaily report, video game and movie rental kiosk company Redbox has an incredibly high conversation rate when it comes to video game sales. The company credits this to a demographic they call "recreational gamers." Research conducted on behalf of the company through surveys finds that recreational gamers are the average age of 34-years-old, spend about six hours a week playing games, over 58 percent of this demographic have kids, and make roughly $61,000 a year.

This compares with hardcore gamers who spend 15 hours a week playing games, are an average of 31-years-old, 41 percent are parents, and make an average of $52,000 a year. The conversion rate from rental to purchase for recreational gamers is 20 to 50 percent, according to Redbox.

Since launching its video game rental service through its 42,000 kiosks around the country, Redbox has become a new avenue for video game publishers to market games to the mainstream gaming audience. Redbox calls these gamers “recreational” consumers and recently did a survey that revealed new information about this audience.

“We’re engaging consumers beyond the hardcore gaming audience,” said Ryan Calnan, director of video games at Redbox. “There’s a large group of recreational gamers that are bringing incremental sales to gaming.”

“Through internal studies of our customers through surveys, 50% said they wouldn’t buy a game unless they could try it first,” said Calnan. “We have a 20% to 50% conversion rate of purchasing the games they rent first.”

The survey also found that consumers look to as a top source for news and information on games. The site gets 2 billion impressions per month. In addition, Redbox reaches 33 million people via email, 4.5 million customers through texts and has had its app downloaded over 12 million times.

Redbox has about 42,000 kiosks in the United States, and those locations offer Wii, Xbox 360 and PS3 games. Salt Lake City and San Antonio are renting Wii U games. Calnan said the Wii U doesn’t have a large enough installed base for rentals to work right nationwide at this time. The company is offering PS4 games in 12 locations.

[A]ListDaily has more on how Redbox works with publishers to successfully market games for rental and eventual purchase here.

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