Canada has launched its first franchised DVD-rental kiosk company, Planet DVD, according to Canadian Business.
At the helm of the company is Jim Gormley, former owner Jumbo Video, which went under when Blockbuster rapidly expanded. Now, Gormley is hoping to capitalize on Blockbuster's failure.
Unlike Americans, however, Canadians don't rely heavily on kiosks for movie rentals: Kiosks had just a 2 percent share of the $1.1-billion Canadian video rental market in 2011, according to Convergence Consulting Group. The U.S. kiosk market equals more than 35 percent.
Gormley sees a growth opportunity, however, now that Blockbuster has busted and another video retailer, Rogers, has reduced its retail footprint and scaled back its DVD business. Planet DVD deployed its first unit in front of a Mississauga, Ont., Sobeys in early March; at least nine more are planned for other Sobeys as part of a pilot project. Agreements with other retailers are also in the works.
A new release at a Planet DVD kiosk costs $3 per day, cheaper than a typical Canadian video store, but more than double what Americans pay at kiosks.
Read more about DVD kiosks.