Blockbuster Adds DVD Vending Kiosks; 50 Machine Pilot; Redbox Numbers


imageBlockbuster (NYSE: BBI) has expanded its earlier partnership with NCR, and will be deploying about 50 DVD rental kiosk machines in a pilot test…this expands on their earlier announced separate deal for download-only kiosks which are being tested in Dallas area. 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 said in the release. No details on locations or pricing was release for now, though I would think the locations won’t be BB stores, but malls or grocery stores.

Meanwhile, the other player in the DVD kiosk business Redbox, which announced plans to file for an IPO earlier this year but then delayed it due to market conditions, reported its Q208 numbers: It had Q2 earnings, excluding some items, of $11.5 million, majority owner Coinstar reported, with revenues of $57.8 million..the company also more than doubled its kiosks to 9,600 from 4,300 a year earlier. Coinstar, which had split 95 percent of Redbox



they should just axe the download portion of the kiosk now. downloads at kiosks won't take off, just like the dvd burning experiments.

Joseph Weisenthal

This is way smarter than the download kiosk idea, which I suspect will end up going nowhere.

Redbox has proven that there's a market in DVD kiosks but they're far from ubiquitous. Certainly Redbox doesn't have this market locked up yet.

Blockbuster should also benefit from a recognizable logo, and possible tie-ins with its larger stores/by-mail service.

Nick Stamoulis

We are so surpried that Blockbuster didn't get on this LONG ago. We see Redbox all over the place and have used it ourselves — you can't beat $1 movie rentals…

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