APPLEBOX DVD Rental Software

How APPLEBOX works

Browse. Book. Pickup.

Remove your shelving, reclaim your space and hold your stock in behind-the-counter cabinetry. Members browse and book in your store (on your computers) or from home.

As customers book a movie, we allocate a copy from your library to them. This happens immediately; we place their booking in your pick list; you pull the DVD from your cabinet and have it ready for pickup.

A totally modern, optimised and economic workflow that will completely re-invent your business.

No Shelves Means New Possibilities

Getting you online is the single greatest thing we can do to position you for the future. Join the Internet age. Yet whilst getting online is powerful, we don't want to add another cost to your business without removing an even bigger one.

Shelving. It takes up valuable space, requires high overheads to manage and limits your stock visibility and total stock holding. Remove those shelves and new options suddenly appear.

We'll save you money

We can compress a 300sqm+ store down to 30sqm without compromising stock holding or customer experience. Locked into a lease? Think about subletting, or float the idea of subdividing your space.

Future proof yourself with a small footprint and online catalogue.

Realtime Stock Control

Realtime Management

All stock levels are managed in realtime. There are no delays, no emails for staff to respond to, no quick trip to a shelf to double check availability. Your library levels are always accurate. Nothing gets double booked, nothing is suddenly not available.

Shelfless makes it work

When managing stock, you've got to control all items down to the very last one. If you're online but keep your shelves, who gets that last copy? The member that just picked it off the shelf, or the member that booked it from home?

For maximum rental turns, you need to run all your copies down to the very last one. Going shelfless and holding all stock in behind-the-counter cabinetry lets this happen. Plus, your customers will love you for giving them big screen monitors to browse and watch trailers from. It's win-win.

Immediate Turn-Around

Once a member drops their DVD back, the turnaround from chute to scan-in has your stock ready to rent again in under 2 minutes. Brilliant on a Saturday night, this gives you a quick turnaround and no need to buy unecessary extras.

Point-Of-Sale

Software KISS

Keep it Simple Stupid! Our POS software is stupidly simple to use. You'll be up and running in an instant, and have new staff trained in no time.

Your Pick List

Our stock control screen groups all your important functions together. The wait list shows you all current orders waiting to be picked; as members rent, their order appears here. Pull the stock from your cabinet, polish and have it ready for them to pickup. They'll be in and out in a jiffy.

Scan Away

Scan a disc and process it's return, lookup movie info, decommission it as damaged, transfer it to another store, lookup its rental history, lookup its stock levels and more.

Members

Don't we love 'em? Manage all their information including identity data and contact details. See what they're ready to pickup, and what they've already got on rental. Check their full rental history, check-out their DVDs, settle a debt, issue a credit. You can also SMS them a message at the click of a button.

Dashboard

Get a quick overview of your trade for any period be it the day, week, quarter or year. Reconcile your till with what the system totals. Check your volumes and track your progress.

Movie Data

Top Shelf Data

We give you the best in movie data available. You get high resolution poster art, cast and crew (fully cross referenced and linked across the catalogue), links to trailers and official movie sites. No scratchy thumbnails please; our images are as big if not bigger, than what you'll see holding a DVD slick. The poster art and movie page are carefully colour-matched to give customers the highest visual impact possible.

TV Done Right

Television is an increasingly large rental segment, but is typically the poor cousin when it comes to data. No more! We give you episode information and show which episodes are on which disc. Separate your boxsets and get greater turns per disc.

Movies are meant to be cross referenced

If there ever was a collection meant to be indexed and cross referenced - it's movies. By actor, director, language, genre, country, rating and of course new releases. It's the most natural way to browse movies and is why IMDb is the 40th most popular website on the planet. Yet before APPLEBOX this power has never been available to stores... the very place people come to rent!

Managed For You

Our Servers, Your Peace Of Mind

Your business is retail, not juggling technology. In-store databases and servers are a minefield of potential failure and poor performance. We run APPLEBOX from our enterprise grade servers hosted in our Australian data centre. With daily backups, redundant systems and ongoing performance tuning & management we do the heavy lifting to make sure our technology never misses a beat. With 99% uptime you can do what you do best... rent movies!

Fast Performance Means Happy Customers

We can push as much movie data and and as many images down your store Internet connection as it can handle. A snappy catalogue means happy customers as they browse thousands of different titles, viewing more than they ever could in a conventional store.

On the Web, For the Web

APPLEBOX has been built from the ground up for the web. The complete platform runs entirely through your web browser, from inventory and membership to point-of-sale and your online catalogue. No need to install software, buy upgrades and run backups ever again. Welcome to the cloud!

Upgrades and Continual Improvement

Our platform isn't standing still. What you see today will be improved tomorrow. The best bit is you get it automatically. We've a great list of platform enhancements that will make life better for you and your customers, and each enhancement will flow to you instantly. No standing still with POS software you haven't upgraded for 10 years!

A Better Business

The Advantages Stack Up

no constant phone calls to see whats in
no misplaced covers or customer rearranged shelving
no re-shelving on price changes
no re-stickering on price changes
no damaged or dirty slicks to replace
poster art is always pristine
no lockable cases required
no title-out slicks required
no security tags
no security gates
no shelving to clean
no wandering aisles to find requests
no running out of shelf space
easy to split TV

The Savings Stack up

reduced lease costs
reduced outgoings
no stickering and security costs
no slick costs
reduced labour costs

A Better Store

With a smaller space you can create a better retail experience. Upgraded fit and finish, better lighting and better customer engagement. This isn't solely for the customers! It also makes a more enjoyable environment to work in.

Our Store In Action

We've setup and operate our own store so we use what we're making. It's our direct connection to the industry we're in. We know what's going on, the pressures, the costs, the volumes, the customer feedback, what works, what doesn't.

We're in Fairfield, Melbourne. Please drop in anytime as we'd love to show you around. In the meantime, click through these slides so you can get an idea of what we've done.
We trade from a floorspace of 32sqm, hold 11,000 DVDs and push out 300 DVDs for around 170 people on a Saturday. 45% of our members book online, with 55% browsing in-store. For those who book online we have their DVDs ready to go when they arrive.

Those browsing in-store generally find movies more quickly than walking around shelving, and rarely wait for one of our 4 iMacs. We bring in our laptop on busy nights to act as a fifth terminal.
We use tin presentation cases to rent our DVDs in. It gives us another branding angle and added differentiation from the competition; we have about 500 we keep in rotation. We also have a multi-pack case for multiple discs and multiple rentals.

Our stock is kept in a custom cabinet that sits under our stairs. It's lockable, has 2 sets of 6 drawers, and holds our 11,000 DVDs with room for more. We use 50kg rated Blummotion soft-close drawers that helps keep our ambient noise down.
Apple iMacs are our computers of choice. They're reliable, virus free, look fantastic and as an all-in-one unit mean all unnecessary cabling is eliminated (please note, we are not connected to Apple in any way).

Any computer however will do!

We've setup our store with a distinct look and feel that fits our area and demographic. We are not a franchise and don't dictate how you might setup your own space. Ultra modern or old-school like us, create a space your customers will enjoy.

A Glimpse Into The Future

An Old Industry

DVD stores have been around for 30 years. This photo from 1985 (nice perm!) shows that despite the change from VHS to DVD, the store remains virtually the same. Yet the pace of change in the rest of the world has been rampant.

The Internet happened! Facebook, Twitter, MySpace, Youtube. Add gaming, cable, expanding TV, piracy (hmmm) and the choice available for home entertainment has become vast. Joe Public is no longer restricted to the local video store.

A Changing Of The Guard

This change in market conditions has seen demand for local rentals decline. We see old businesses exit, and new businesses enter. In the States, by volume, traditional stores are now 3rd ranked in rental business, behind mail-order and kiosk.

DVD and Blu-ray are here to stay

Pop quiz: in the music world, what is the dominant sales mechanism today? Is it digital download or packaged media (ie CD/DVD)? Answer: Packaged Media.

As the market approaches a new equilibrium we are seeing growth in digital downloads slow. The end-point is still to come, but even in an increasingly online world, packaged media has it's place. The nature of film (especially in it's high-definition Blu-ray incarnation) guarantees longevity in physical media.

This is an exciting market to be in and make no mistake, local DVD rentals can play a strong role. Yet retail is brutal and the economics of our industry have permanently changed. Video stores must evolve to remain relevant, must re-think their operating costs, must embrace the Internet, and must look for new ways to engage and connect with their customers.

Pricing


	Kiosk monthly	Mini monthly	Small monthly	Medium monthly	Maxi monthly
Max Title Count	500	1,000	5,000	10,000	20,000
Bandwidth	Unlimited	Unlimited	Unlimited	Unlimited	Unlimited
Membership	Unlimited	Unlimited	Unlimited	Unlimited	Unlimited
SSL Admin

Title Count

Our price structure is based on your title count, not copy depth or outright DVD holding. A title is a film itself and not the various release editions (for example, Blade Runner with the Directors Cut, Final Cut, Blu-ray or standard def releases all count as one title). For television, a title is a TV season or series (for example, Grey's Anatomy Season 1).

Licencing

We licence our platform on a per region basis. This means you own the rights to serve rentals with our platform, within your geographical area. We'll define that area with you and won't licence the platform to others who operate within the same area.

Frequently Asked Questions

As a Dedicated Store

Is this a complete replacement for my existing POS system?

Yes. We completely replace your current POS system.

How many POS terminals can I have in-store?

You can run as many POS terminals as you need. Our POS system is web based so all you need to do is open a browser on an available computer, and begin processing rentals.

This is great for peak periods (eg a Saturday Night), where you can plug in a laptop for 2 hours to help with that 5pm rush.

Can you extract the movie and membership data from my existing POS system?

We can extract and load your member details into APPLEBOX, but members will still need to supply an email address and pick a password. You may choose to ask members to re-sign to ensure all their contact details are up-to-date.

We don't auto-load your inventory data, as this is the time to do a complete stocktake to ensure all your titles are correctly entered into the system with an accurate stock count on titles, releases and copy depth.

Can I run a hybrid model of some shelving, some APPLEBOX?

Technically you can. However we don't recommend it. By retaining shelving you're not offsetting your technology costs with a reduction in floorspace and associated lease costs. You will also need to run two POS systems simultaneously (your old one and APPLEBOX).

However, this is your choice and if you do wish to run shelving and APPLEBOX, then we'll support you however we can!

I have 10,000 DVDs. How do I transition to your model and how long will it take?

Get in touch and we'll walk you through the process, but we recommend putting aside 2 months to convert your existing space to shelfless. This won't interrupt trading and will bring your customers along with you.

We'd begin by reconfiguring your store with benches or tables at the front, set with computers ready for members to browse. We'd then check your DVDs into the system section by section, and remove the shelving from that part of the store.

During the transition, members will browse and rent from the computers at the front of the store, and browse shelving for those remaining DVDs that have not been checked into the system.

As your conversion continues, shelving will dissapear to leave only the monitors, your front-of-house cabinetry, retail stands and the DVD storage cabinet. At this point, you will be ready to relocate to a new small-footprint store, or use your newly available space for something else.

Two people working full time, 8 hours a day and dedicated to stocktake, can check-in about 1000 DVDs between them. For 10,000 DVDs this is 10 days straight. We suggest 2 months so you can use available labour and still remain standing at the end!

Can you re-use my barcodes?

Yes, we can happily re-use your barcodes. If you don't have barcodes, you will need to source these and sticker your DVDs as you check them in.

How many people do their browsing and ordering online, versus doing everything in store?

We find about 45% do everything from home and drop in for a quick pickup, and 55% still come into the store and use the computers and fast Internet connection.

Customers still want your opinion and interaction with you and your staff is important!

What in-store IT equipment do I need, and how fast should my Internet connection be?

All you need is your customer computers, your staff POS computers, a wireless router (to create a local wireless network) and an 8 Mbps Internet connection (typically cable or ADSL2). You should have a minimum monthly allowance of 20Gig.

You don't need any in-store servers or complicated networking; a standard wireless network will do. With a good router, you can keep part of your network private, and expose part as a public hotspot (we recommend Meraki).

How many computers will I need for a medium size store?

We suggest you begin with 4 large screen (eg 22inch) computers. Remember almost half of your members won't use them - they'll just come in and pickup what they've booked from home. If you find you need more, you can simply buy more and add them as needed.

Having a laptop handy helps out as a portable option if you are short of monitors in your peak rush, or if you need to add in another POS terminal to help out.

Can I put my non-movie stock through APPLEBOX?

No. At this point, the POS works only for movie rental. We do however have plans to expand it into a general POS system to support your other retail efforts.

I think it's a risk - will my customers like it?

Your customers will love it. They already use facebook, email, do their banking, buy and sell on ebay, and watch clips on YouTube. Using APPLEBOX will feel completely natural and they'll wonder why you haven't converted earlier.

As a Kiosk

What can an APPLEBOX kiosk do for my business?

APPLEBOX can give you a new revenue stream and help drive return business to your store; every rental customer will visit you twice, initially to rent and then to return.

How much space does it need and what does it look like?

You can setup a browsing station in as little as 0.5 sqm, with the DVDs themselves kept in your back-of-house area. For small stock holdings you can re-use whatever storage space you may already have. As your rental business and library grows you'll need a dedicated DVD storage unit that can be standalone or built into your benchwork.

We don't dictate how your browsing station might look. You can integrate this into your business with whatever fit and finish you desire. This can be as simple as buying a small bar table from IKEA with an iMac or PC on top, or can be custom built to fit your shop layout as you need.

Who supplies the DVDs, who takes the rental revenue?

You buy and own the DVDs, you take the rental revenue. Our involvement is running the platform which we licence to you. We can recommend a buying group to help with your DVD purchases,

however on small stock volumes buying directly from mass merchants (eg JB Hi Fi, Big W, Target) is both legal and a good way to begin.

The System

Can we rent games?

Not at this point. We are working with movies as the core offering of video stores.

Will the system work on Windows 7, Vista or XP?

Yes. Our platform works fully on Windows, Mac or Linux. Our Back-Office functions require Firefox 4, and the catalogue will run on all modern browsers.

Can customers browse my store on their phones?

Not yet! With predictions that mobile traffic will exceed desktop traffic by 2014, we will be creating a dedicated mobile storefront as soon as we can.

Do I have to carry your branding?

No. We don't impose branding or operational requirements on how you run your business. 'Powered by APPLEBOX' is all you need to say.

Why single sign-on?

Single sign-on means every member only needs to sign up once. They then will be able to rent from all stores on the network. This unified membership means bad debtors are locked out from renting across the entire network, members can access services from any store (which in the future might include retail, mail-order, or even video on demand) and multiple store owners can easily support their entire membership base.

DVDs can only be returned to the renting store, and rules on member visibility are enforced to ensure one store isn't given access to another's members.

Can I run the catalogue from my own website?

Yes. Your customers can enter your storefront directly from your website. If you own a number of stores, we can treat your website as a portal to all your stores, with a store directory dedicated to you.

Can you create a complete website for me, to get me going?

Yes. We can do everything needed to get you online. We can create a website, a blog, a facebook business listing and a twitter account to get you setup with whatever level of social media engagement you are comfortable with!

Can you supply cabinetry and help with the physical setup?

Yes. We provide a full service consultancy that can set your business up with a complete solution for either a small volume kiosk or large volume store. We can design and fit cabinetry and signage for your space, and create all the marketing collateral you would like to promote your business.

Please get in touch for a quote on what you would like to achieve.

Will you add mail-order and retail?

We are keen to explore a unified mail-order and retail function, with stores acting as service and distribution points. This means customers see a single retail or mail-order catalogue, and stores service what they wish to from their stock holding.

The more stores we have using our platform (which operates as a unified stock control system), the more powerful the network effects will be and the more value delivered back to individual stores.

How do I earn from downloads in the future?

We know which members are yours, so in the future should your members rent from a download service we offer, there will be an audit trail right back to you. You'll get a cut for being part of the network.

We think this can be a great earner of passive income and keep all stores enthusiastic about the role downloads can play in their business.

Choices UK	Entered Administration August 2007. Was the second largest UK rental group behind Blockbuster. In April 2010 re-launched as a small footprint model, rentithere.
Movie Gallery (US)	Declared Bankruptcy, April 30, 2010. From a peak holding of 4,700 stores in North America, all stores are now closed and liquidated.
Blockbuster Inc. (US)	Filed for bankruptcy protection in September 2010, and was sold to Dish Network in April 2011 for $320 million. Blockbuster previously sold to Viacom in 1994 for $8 billion, who then divested their holding (and debt liability) for $1.3 billion in 2004. From a height of around 4000 US stores, Dish Network will keep only 500 core stores operating.
Blockbuster Inc. (Canada)	Placed into receivership in May 2011. The 400 stores across Canada will remain operating whilst the administrator decides on the company's fate.
Borders US & Borders AU	Filed for bankruptcy protection and entered administration respectively February 2011. Whilst not video specialists per this review, they show the market forces and pressure that Internet models bring to bear on seemingly strong businesses.

Netflix	Netflix in the US pioneered the model of DVD subscription by mail. The model has been copied worldwide, including in Australia by Quickflix and Bigpondmovies. Netflix has been trading since 1999 (12 years) and as of Jan 2011, have 20 million subscribers in the States. They offer a streaming model and are looking to grow streaming-only markets, having begun with a streaming-only service for Canada.
Redbox	Redbox is the US market leader in DVD rental by vending machine. As of May 2010, they have 25,000 machines in circulation. They are currently looking to establish a streaming service to compete with the streaming offering from Netflix. In Australia, Oovie and RedroomDVD operate with the same vending machine model. 2010 was a tipping point for physical rental in the States, as reported in Jan 2011, traditional stores trail both mail-order and kiosks in rentals. For all DVD and Blu-ray, 41% of rental turns are done by subscription, 31% by kiosk and 27% by traditional.
iTunes Music Store	The iTunes Music Store has been trading since 2003 (8 years) and now sells music and movies in 36 countries around the world. It is the dominant force in online media distribution. The Apple end-to-end stategy (source to experience) is more difficult to replicate in the movie business as movie playback (beyond the computer) relies on the AppleTV as a dedicated Apple device. This is the challenge with online delivery; becoming the preferred vendor from source to playback, in an environment where movies and equipment between services don't mix.
Facebook and Amazon	Amazon and Facebook are the most recent entrants into the movie rental business, with both offering a streaming service. Amazon offers 'Prime Instant Video' as a free service to those in their premium subscription program, and Facebook is testing the waters with a pay-per-view offering. Both companies have tremendous reach and could become significant players in the future.

2009: US figures CD 65% Download 35%	The NPD market research group released results in August 2009 that showed for the first half of 2009 65% of all music sold in the US was on CD, with paid digital downloads comprising 35%. We're eagerly awaiting the follow up survey to see where the balance sits today.
2011: US figures 78% of home viewing budget goes to physical media	The NPD market research group released results in March 2011 that showed 78% of home viewing spend went to the purchase or rental of DVD and Blu-ray discs. 15% was spent on subscription services (eg Netflix) and 8% on pay-per-view digital offerings. Their conclusion: 'physical discs continue to lead overall engagement and spending by home video viewers... the primacy of DVD and Blu-ray in home video will continue for the foreseeable future.'
2011: Growth in Downloads Slows	The International Federation of the Phonographic Industry (IFPI) released a report in January 2011 that showed global growth of digital downloads has slowed. 2008 saw growth of 25%, 2009 12% and 2010 6% in year-on figures.
2011: Australia prefers CD (72%)	February 2011, The Australian Recording Industry Association (ARIA) released a report that showed 72% of all Australian music sales occurred via physical media. The remaining 28% is via digital download.

The rental platform for clever stores