Industry Overview

Finally, the way that consumers rent movies has been revolutionized! The days of the giant rental stores are numbered. Today's busy consumer demands convenience and, just as ATM's have to a large extent, due to speed and convenience, replaced bank tellers for most banking services, our automated DVD rental terminals are the next logical step in the evolution of traditional video stores.

Automated DVD rental terminals have taken the European market by storm, all but replacing the traditional video store. In North America, the automated DVD rental kiosk industry is in its infancy with terminals only now beginning to appear as a result of several massive deployments by Wall Street financed, multi-million dollar companies. These initial deployments are largely into fast food, grocery, and convenience store chains.

Today's busy consumer will always try to minimize the number of stops when running errands. This is the reason why gas stations have added grocery essentials such as milk and bread, why supermarkets offer pharmacy, florist, and photo processing, and why most convenience stores are now offering banking or bill payment machines. Similarly, logic dictates that people are much more likely to rent new releases where it is fast and convenient rather than make an extra stop at a big box video store.

Our DVDNow automated DVD rental terminals are the perfect fit for grocery and convenience stores, gas stations, liquor stores and other similar businesses as they enable a customer to grab a movie without making an extra stop on the way home. Nearly 90% of all DVD rentals are new releases and, at our automated terminals, customers can quickly browse through a complete offering of the latest movies. They can also watch movie trailers, check out previously viewed titles for sale and, most importantly, they can avoid another time consuming trip to an overcrowded DVD rental store. Our product is in high demand with retailers not only because our DVD rental kiosks are quite often the most profitable per square foot of any item in their store but also because hosting one of our DVD kiosks guarantees a subsequent visit from the consumer when they come back to return the movie.

At present, DVD rental terminals are primarily deployed and operated by well-financed corporations that are battling over the largest of the fast food, grocery and convenience store chains. Venture capitalists, along with some of the largest and most prominent corporations in America, have invested tens of millions of dollars in planned large scale deployments of DVD rental kiosks. These are some of the most sophisticated investors in America and they do not make any investment without careful deliberation. Their research, as well the unprecedented success of the initial deployments of hundreds of terminals in select States, have proven to them that automated DVD rental kiosks are the future of the DVD rental industry.

Coinstar recently purchased a 43% stake in Red Box for $20 million. Bank of America recently upgraded Coinstar's (CSTR) rating from neutral to a buy and cited their investment in the DVD rental kiosk industry, and the huge potential for growth in the DVD rental kiosk industry as a factor. . . . [W]e believe Coinstar's interests in the DVD kiosk industry are attractive. Based on what we believe are conservative assumptions, we have valued Coinstar's DVD investment at $4/share; Bank of America Equity Report, April 6, 2006.

As an entrepreneur you can not own a Red Box or DVDPlay distributorship for any amount of money, just like you can't buy a Starbucks franchise they are almost wholly corporately owned. However, there is a way that you can participate in and profit from this massive rental paradigm shift and be on the forefront of the DVD rental kiosk revolution. The DVDNow automated rental kiosk enables entrepreneurs to capitalize on the over $20 billion DVD industry by allowing them to participate in this exploding market. With our program, independent operators are able to establish a network of state of the art DVD rental kiosks in locations such as grocery and convenience stores, fast food restaurants and large apartment/condo complexes.

DVDNow has put all the pieces in place to get you in business as quickly as possible with all of the support and services that are essential for a smooth and accelerated launch. Just imagine: within 60 days of reading this web page you can have your own automated DVD rental kiosks installed in profitable locations generating a passive income for you and your family.

Our model is to focus on the highly profitable and readily available independent or mid-sized chain locations. These locations are for the most part overlooked as the giants of this industry raise tens of millions of dollars to deploy into only the largest of the chains such as McDonalds, Safeway and Kroger Grocery Stores. Mid-sized chains and independent locations realize the benefits of offering DVD rentals and are turning to DVDNow to satisfy consumer demand.

The opportunity is here. The time is Now! DVDNow!