Home entertainment industry sees growth despite credit crunch
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Home entertainment industry sees growth despite credit crunch
The doom and gloom that is gripping the economy has claimed more than a few victims in recent months. With the credit crunch situation seemingly going from bad to worse, the retail industry has been one of the major areas which has experienced a sharp downturn in spending in recent months.
However, one Gloucestershire based business claims to be thriving as a result of consumers being forced to curb their spending habits as a consequence of the credit crunch. The Movie Booth claims to have doubled their DVD rental kiosk output in last three months and expects to deploy eight more of their kiosks in retail locations across the UK and Ireland by the end of November. This comes at a time when fifty seven pubs are closing every month and unemployment levels have increased at the highest rate since 1992, leading to the general freedom of retail and leisure spending being reduced.
However, in the eye of the storm some businesses have been presented with an opening in their markets, and The Movie Booth are one such company who are hoping to exploit such opportunity. The company sells fully automated kiosks to convenience stores and supermarkets, where people can use the kiosks to rent DVDs. Like ATMs, the kiosks operate using a credit/debit card system but rather than cash, movies are dispensed. Each kiosk holds up to 620 films and The Movie Booth has recently agreed a contract with Musgrave Retail with plans to deploy kiosks across their brand in Ireland. The company says it has seen a steady growth in recent months, cumulating in the closure of several key deals. The firm has put together the ‘Great Night In’ package as a result of the credit crunch which has led to more people looking for a cost effective alternative to the traditional night out.
Carlos Marco, Managing Director at The Movie Booth said: “At present the general trend is for people to tighten their belts and cut back on spending, and this has actually worked in our favour. With some of our competitors struggling because of the reduction in sales coupled with people saving money by spending more time at home, we have defied the general market trend and seen the demand for our product from both retail owners and end users increase in recent months.” In the UK, a recent survey revealed 39% of adults now have a ‘big night in’ once a fortnight, with the average consumer watching two DVD’s each week. The demand for movie nights in is mirrored in the US market where the DVD rental market has experienced a new lease of life and 10000 DVD rental machines are now deployed across the nation.
Further information on the Movie Booth can be found by visiting www.themoviebooth.com or calling 0870 1436769 .
