With summer in full swing and the beaches crowded with beautifully tanned and picture perfect people, I decided to take a break from the summer soirees one night and head to rent a movie with some of my best friends. Yeah, I know “dinner and a movie” is so over used but that’s the only way to really describe the night that I wanted.
So I went to rent some movies from my local movie rental place that I always go to – The Red Box.
With over 35, 000 locations around the country, I am sure that you all have heard about it. The stylish red kiosk situated in the middle of your favorite grocery store, outside the library or in shopping centers standing tall and well, you know the drill- you pick out your movie, pay and you are good to go! Simple and easy. To be able to walk up to a kiosk, choose your movie, pay and walk away is a terrific and great concept that has exploded across America and the UK. No hassles, no waiting in line, no membership fees, nothing.
What many of you may not know is that the innovative concept for renting movies for a $1 from a dvd kiosk came from a very successful, intelligent and business savvy New Yorker who first developed the $1/day DVD rentals in the country in 2001- Jason Tanzer.
Tanzer and his business partner created DVDXpress in 2001, the country’s first $1 DVD kiosk rental system which expanded to over 1,000 locations in 37 different states and in the UK. Brilliant idea folks!
The concept eventually became so popular that Coinstar, the self-serving coin counting company saw the potential (not to mention the success) and purchased DVDXpress and emerged the business into its redbox division.
Ravi Yande with successful entrepreneur Jason Tanzer
Tanzer got the idea of renting movies from a kiosk while he was traveling overseas in 2001 in Spain.
” I am always thinking about the next business idea no matter where I am,” Tanzer exclusively told The Ravi Report . ” What excites me is new and innovative ways to explore new business opportunities and when you get that “Eureka” moment like I did with DVDXpress, it’s an amazing feeling.” stated the industrious entrepreneur.
The NYU Business school top grad researched the DVD markets thoroughly to see what the future would be for DVD rentals and how traditional videos which were slowly eradicating out of the market. He knew right from the start the kiosk renting system would be successful from his research and intuitive sense of business.
Why would people prefer to rent from a kiosk rather than online? Good question.
“It’s cheaper, faster and you get the newest selections at your finger tips,” said a very cute and tanned brunette holding two movies in her hand in front of the redbox kiosk in Princeton.
“You have no fuss about renting any movies. Plus, it’s a cool feeling going to a box and seeing the films you want. But I really do it for the convenient factor. I buy my groceries and pick up a movie on my way out,” said a very attractive blond college student with her nose pierced checking out the latest titles.
Tanzer says that the entrepreneur bug bit him in his early college years when he would travel the world to places like Africa, Spain and Italy (India is next on his list!!!) and explore business concepts that had yet to migrate to the United States.
But with all good ideas, comes the most important element and usually the hardest thing to acquire- financing.
The entrepreneur reached out to friends, family and potential investors for investments. It was tough but he like any passionate and business minded individual, he persevered with diligence and after a successful business plan was able to get some interest. But the one thing that Tanzer did to show just how much he believed in his business idea was to do what any hungry and ambitious entrepreneur would do- he put up his own money, $15K to be exact and it certainly sparked an interest. Tanzer eventually received over $9 million from investors.
“In the business world, you have to take a risk no matter what the outcome. I took a risk and the outcome proved to be a good one because right from the beginning, I knew where the money would go, how the business would be scaled and to be quite honest Ravi, failure was NEVER an option for me,” Tanzer stated.
Tanzer now runs an investment holding company and continues to travel the world looking for other business ideas and concepts and whenever he passes a redbox kiosk, he quickly smiles with a bit of satisfaction.
“It’s been a great experience to see an industry get built from the ground floor up.”
Spoken like a true pioneer.
The journey continues….movies and all.
Ravi