Monday, August 4, 2008

Blockbuster Adds DVD Vending Kiosks

Blockbuster Video has entered into a partnership agreement with NCR to deploy DVD rental kiosks:
The DVD-rental only kiosks will start to appear in the third quarter, with full deployment by the end of 2008...down the line, these kiosks will add DVD buy and downloads as well, the companies said. "Looking beyond this initial deployment, our mutual goal is to have 10,000 kiosks installed within 18 months," said Bill Nuti, NCR CEO
These video kiosks will be similar to the Redbox kiosks. According to the same press release, Redbox (a joint venture of Macdonalds and Coinstar) has deployed 9600 such kiosks thus far and has been very profitable.

Since Redbox locations are limited (to Macdonalds restaurants), the company does not have significant coverage, and should not pose much of a threat to Blockbuster's own rollout.

No comments: