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February 20, 2004/Shevat 28 5764, Vol. 56, No. 22
Automated movie rental debuts in Valley markets
RAEANNE MARSH
Special to Jewish News
Phoenicians are among the first to try out an innovation that David Solomon originally conceived while living in Israel. Last month, Solomon's fully automated DVD vending machine, Show To Go, debuted in the Valley.
It was an entirely different venture that previously had him in Israel. He had gone to school there, he explains, and although he had established a successful business here in the United States - in the Philadelphia area - he says, "I found my heart was still in Israel." So he convinced Toys R Us to let him be their franchisee for Israel, and moved there, where he founded a chain of about 20 stores.
A partner in that effort was also involved with a video rental business, which is where Solomon first saw the DVD vending machines that piqued his entrepreneurial interest. They were being used only during off-hours at the video store or when traffic inside the store was unusually heavy.
Solomon developed the vending machine into a full-service "store in a box" that gives customers touch-screen access to lists of movies, by category, and movie particulars on each that include who directed it, who stars in it, how long it runs, its rating and a plot synopsis. Solomon added a monthly subscription capability and a second program to offer pre-viewed stock for sale.
Solomon found several supermarkets in the United States were interested in putting his Show To Go machine in their stores. After all, he points out, video rental is a valuable extra in the grocery store; one video rental means two trips the customer makes to the store, and that translates into more grocery basket sales. But there's a downside to the store that includes the amount of space taken up, losses suffered due to theft, and personnel-related costs.
Show To Go provides the positive of letting the store offer customers a large inventory of movies while eliminating much of the negative involved in stocking them, he explains.
Albertsons, ultimately, got the nod.
"I was struck by how well they seemed to understand this customer," he notes.
Plus Albertsons' 2,300 stores around the country offered him the opportunity to grow his business quickly, starting in Phoenix and Philadelphia.
"Most of Albertsons' top corporate personnel are based in Scottsdale, and they wanted it in their backyard. But because I'm in Philadelphia, I wanted something in my backyard, too, so they gave us their Eastern division as well."
Solomon draws on his experience in retail merchandising, retail marketing, retail real estate, credit card processing and advertising for his current venture.
And although he says it's challenging to try to wear all those different hats, he still has energy to carry on his family's tradition of strong involvement in their local Jewish community. He and his wife serve on the board of the Jewish Family and Child-ren's Services of Greater Philadelphia, and the two are chairing this year's fund-raising gala. (Ironically, his mother - who is current chairwoman of The Jewish Agency and former chairwoman of United Jewish Communities - will be the honoree.)
Here in the Valley Show To Go is installed in five locations: Albertsons at Scottsdale Road and Carefree Highway, Scottsdale; Osco Drugs at Pinnacle Peak and Pima roads, Scottsdale; Albertsons at Scottsdale and Thomas roads, Scottsdale; Albertsons in Desert Ridge Marketplace, Phoenix; and Albertsons at Baseline and Ellsworth roads, Mesa. Each machine is stocked with 630 DVDs of movies - new releases and classics. Games are yet to come.
"I have no expertise yet for selecting the right games," he says, explaining that he wants to study them first. "They're more trendy."
And the Valley machines have one additional feature - a special code.
"I'd like to give back to the Jewish community," Solomon says, so between now and April 30, punch in "AB2000" and a donation of 10 percent of that transaction will be made to the Jewish Federation of Greater Phoenix.
Raeanne Marsh is a free-lance writer based in Phoenix.
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