NCR Boosts Blockbuster’s DVD Kiosk Plans With DVDPlay Buy

Blockbuster (NYSE: BBI) is getting a bigger footprint in the DVD rental kiosk business. NCR, which operates Blockbuster-branded kiosks as part of a year-and-half old partnership, has purchased big kiosk operator DVDPlay and is converting all of its 1,300 kiosks to the Blockbuster Express brand. The acquisition is NCR’s second this year; in April, it purchased kiosk operator TNR.

With DVDPlay, NCR says it will now operate 3,800 kiosks by year end. Blockbuster had said back in September that as part of a strategy to transform itself into a “multi-channel brand” it expected to have 2,500 kiosks by January, so the DVDPlay buy accelerates those plans. NCR and Blockbuster have said they hope to ultimately have at least 10,000 kiosks installed. That still pales in comparison to rival Redbox, which said this morning that it already has 22,210 DVD rental kiosks.

Terms of the deal were not released, although DVDPlay had raised at least $40 million in funding, including $20 million in a round from El Dorado Ventures, Emergence Capital Partners, Palo Alto Venture Partners and Vanguard Ventures in June 2006 — which it said at the time it would use to roll out additional kiosks. Here’s the release.