Redbox, operator of almost 39,000 DVD rental machines, will begin selling tickets to live events and attractions in Philadelphia at its kiosks and online, entering a market led by Live Nation Entertainment Inc.
Tickets will be marketed at face value or less, plus a $1 fee for each sold, the unit of Coinstar Inc. said Wednesday. Among the first events offered is a Carrie Underwood concert scheduled for Nov. 28 at the Wells Fargo Center.
The venture may signal new price competition for event promoter Live Nation, which got 22 percent of its $5.4 billion in 2011 sales from its Ticketmaster division and has faced litigation over its fees. The project is part of Coinstar's push to develop new vending-machine businesses and diversify beyond DVDs, which accounted for 85 percent of sales last year.
"The idea of affordable access is really important," Redbox President Anne Saunders said. "We do think it's going to be very attractive."
The company is open to working with any ticket sellers who want to make inventory available, including Live Nation, Saunders said. Local vendors account for a significant share of the business, she said.
Coinstar, based in Bellevue, Wash., rose 1.5 percent to close at $45.68. Live Nation, the world's largest concert promoter and ticket seller, fell 3 percent to $8.29.
Coinstar, which plans to expand the service to Los Angeles in early 2013, expects to attract consumers with the $1 fee and convenient Redbox dispensers in supermarkets, convenience stores and big-box retailers. Live Nation operates Ticketmaster kiosks in more than 1,100 Wal-Mart stores, according to its website.