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DVDNow's latest kiosk will keep Eastenders in the picture

New release: David Lovell Jr. (left) and Jamel Lovell, of DVDNow Bermuda, stand next to one of their new DVD vending machines located at White's Southside Supermarket. The two cousins also have machines at Heron Bay Plaza and at the Shelly Bay Pizza House, and only a major credit card or debit card is needed to use the service.

Renting and buying the latest blockbuster titles from some of the more remote parts of the Island has just become easier after a DVD kiosk franchise launched its latest machine in St. David's.

DVDNow Kiosks, which is run by business partners and cousins David and Jamel Lovell, marked its first year in business by setting up its third kiosk in White's Supermarket in Southside.

And with two other kiosks in Pizza House restaurants at Shelly Bay and Heron Bay Plaza in Southampton respectively, the pair of Bermudian entrepreneurs are looking to expand to 20 kiosks Island-wide at a rate of one every 90 days over the next two years.

The kiosk works by the user selecting a DVD, making the payment of $2.49 for the first night (99 cents for Wednesday night) and $2.99 for each additional night in cash or with a Visa or Mastercard, collecting the DVD and then returning it, all done electronically.

The buyer also has a chance to look at the DVD, get a synopsis of the plot and watch the trailer on an in-built screen for up to 10 minutes before deciding whether to take it or not, with no charge being made if it is returned within that time. Failure to pay the nightly rate for 10 consecutive days will result in the renter having to purchase the DVD.

"The idea came from looking on www.entrepreneur.com in November 2007," said David Lovell.

"We thought this could be a good viable business that would work in Bermuda and started it up within a few months.

"The feedback has been awesome - people have really enjoyed the machine because it is so easy and convenient for them to use."

The kiosk, which stocks 112 DVDs, typically has between four and five new movies a week to rent or buy for the retail price, with the older titles going on sale for around $10.

A new machine compete with touch screen technology is set to be launched in three months time, with the Lovells still trying to find a location to set it up. After that, they plan to roll out new models across Bermuda, including the central Hamilton area and Somerset.

David Lovell, who graduated with a degree in Computer Networking and Technical Support from Seneca College of Applied Arts and Technology in Ontario, Canada, and for whom this is his first business venture, said the beauty of the kiosks was that customers would be able to get hold of a DVD from almost anywhere at anytime once the full complement of machines was up and running.

"The traditional brick and mortar companies do not actually have the flexibility to be all over the Island because of financing that operation," he said.

"But we have the advantage of having small overheads and the supermarket and restaurants the kiosks are based in do not charge us any rent because of the business they bring in there."

Local companies will be able to advertise their businesses on the flat screen televisions, which will all be fully installed later this year.

Other smart features include reserving DVDs online, seeing which titles are currently available, finding out about new and coming soon releases and even checking your receipt on the DVDNow Kiosks website. New customers also get a free coupon to rent a DVD when they sign up to the service.

Meanwhile Mr. Lovell does not believe the advent of online downloads of DVDs will have a big impact on his enterprise.

"The big movie studios I do not think are going to release movies on demand before they have reached the kiosks and video stores - certainly not as early as this year," he said.

"But it is definitely something to consider in the future."

The kiosks, which are run by DVDNow Kiosks Inc. in Vancouver, have already proved a big hit in the US, with approximately 2,000 machines set up across the country since the business started several years ago.

Customers will also be able to get hold of a range of DVD series, Blu-Ray DVDs and video games, as well as order laptops and televisions from the company.

For more information about DVDNow Kiosks contact David Lovell on 536-6221 or email dclovell@microtech.bm or Jamel Lovell on 505-3675, or visit the website at www.dvdnowbermuda.com