THE Business for Sale Marketplace

This Business is the remaining operations and assets of an automated DVD rental kiosk and digital display business founded in the Chicago area in 2002, which includes the 6th largest assemblage of DVD rental kiosks in the US. These units are DVDPlay brand (3rd largest US DVD vending operator behind RedBox and TNR – now NCR) Model 100i’s, together with related operational and marketing technology and systems. A prior sale to a real estate-focused investment group in August 2008 did not go as planned when their ongoing funding dried up with the economic credit crisis. Ownership is seeking another buyer or a joint venture partner to participate in deployment and operation of the kiosks. Seller is willing to offer a large component of seller financing for a capable buyer-operator, or contribute the kiosks to a new joint venture with capable venture partners. A single DVD rental kiosk typically costs between $12,000 to $20,000 new and can be expected to generate between $700 and $3,000 in revenue per month, depending on traffic, location and marketing efforts. Profit margins on good locations can be as high as 70 or 80 percent. This opportunity gives a group interested in the DVD kiosk market the ability to enter at roughly 25% of the cost of equipment required for new kiosks, with joint venture or seller financing for the right group to take advantage of this unique opportunity. Terms are negotiable, asking $4,000.00 per unit for single or small blocks and willing to entertain reasonable roll-out times and unit price discounts for larger blocks. For those who want a larger network, Ownership can acquire another 50 or more DVDPlay units on comparable terms, or can include a 40+ unit network of the same brand of kiosks that are currently operating in a regional grocery chain as part of the transaction. I.e., approximately 250 total units, about 40 in-place and the balance ready for deployment. Ownership can also provide arrangements with new software vendors who can increase the functionality of the kiosks with new user friendly marketing features, including the ability to integrate with retailer customer loyalty swipe card clubs to offer free DVD rentals for club point redemptions – advanced direct customer marketing. Ownership believes that automated DVD rental has a solid life span in the fastest growing segment of the Home Entertainment industry – DVD rental kiosks. At its pre-sale peak, the Business was generating over $400,000 in annual revenue with over 80 kiosks deployed. The Company maintains ownership of over 150 kiosks in storage, as well as industry relationships for additional DVDPlay units, retail and other locations, vendors and technology providers as well as a tremendous amount of general capabilities, systems and marketing know-how from the remaining staff who formed a digital signage company after the August 2008 sale.