NCR Corp., which licenses the BB name for its Blockbuster Express rental kiosks, may be interested in more BB properties, according to one analyst. Gil Lauria, an analyst with Wedbush Morgan Securities, says if the opportunity presented itself, NCR could acquire Blockbuster’s by-mail and on-demand services. Said Lauria:
“NCR at some point may decide to buy any piece of Blockbuster, depending on what happens to the company financially . . . NCR is worried about its own business, and they are ready for any [third-party] scenario Blockbuster might entertain. If Blockbuster was to get in [further] trouble, NCR would be able to take some of those pieces.”
Bill Nuti, CEO of NCR Corp., did nothing to diffuse such speculation when he told Bloomberg News that NCR “was willing to spend millions to acquire third-party digital and by-mail rental properties”.
Blockbuster spokesperson Michelle Metzger wouldn’t comment on NCR’s current of future plans, and offered the following statement on her company’s relationship with NCR:
“We are pleased with the progress of our partnership with NCR in the Blockbuster Express kiosk program and look forward to continuing that relationship,”
Insiders, how likely do you think it is that NCR will purchase some of the pieces of the crumbling Blockbuster empire? Would such a move be in both companies’ best interests, as well as those of consumers?
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(via Home Media Magazine)
Being that NCR already has a decently solid base from their manufacture and ownership of ATM’s all over the world, as well as other major market technologies, BB should consider themselves lucky that this may present itself to be an option. As far as I can see this is a good for everyone, assuming of course this means more BBx’s, which is necessary for them to make mega profit. Especially in my area, I have yet to see one, but when I do, I am gonna check it out.
IMHO, BlockBuster’s strongest asset is their retail stores. Yep, I said it. Sometimes it’s nice going in to a local store and walking around, browsing titles and what-not.
BlockBuster has two problems:
1. Their prices are just too darned high. I stopped even going there when I want to rent something… be it a movie or a game. There’s a local chain with much better pricing on both. Then there’s RedBox with even better pricing on movies (for one night, at least… the chain does much better if you want the movie more than one night).
2. They haven’t successfully leveraged that advantage. They could do so much with it. Tie it in better with the mail order side of the business. They tried that a little, but I think they could do a better job. They also need to tie games into their mail order. Mostly the second…
If they had better per night rental rates (on par with Kiosk pricing) and their mail service was a combination of netflix and gamefly, they’d clean up. Especially not being effected by the 28-day window.
in responce to jake – your idea about them sending games as part of the online plans is actually in progress. they are trying it out in Seattle & Cleveland, since it’s going well it should be rolled out nationwide at some point. not sure what you mean about “tie in better with mail order side”? most bb online plans offer 5 free instore exchanges per month and other rentals with envelopes are a discounted rate for the rest of the month – game rentals are 50% off with the online mailer, too. i’ve been a bb online member for 4 years and love it. i do wish they had some free streaming too but for the most part bb online & completely mixed with the stores (if there is still one in your area!) and easy to use!
Im sure if blockbuster can ever show a profit renting video games though the mail. Netflix would team up with gamefly to crush them…
there was talk it would roll out nationwide last year.. last i heard the date is now UNKNOWN when or IF it will happen. (it started around may 2009 and was told it would go nationwide by end of 2009 , never happened)
Here is what NCR should do…they should buy Redbox.
damn, I hope not. NCR has the license to the BB name for the kiosk biz. spend time/money on growing that with MOD system and stay away from brick & mortar. why would anyone want a dying spec retail chain? Let BB merge with Movie Gall to buy some time.
If I was NCR, i’d try to acquire the mail service and stay the course with the kiosks. They should stay far, far away from the B&M stores.
I’d stay FAR away from that MOD Systems product — that company is a dead end. Its too bad that the management screwed up what might have been a interesting product, if it was released a year or more ago.
I don’t think it’s likely that NCR will buy Blockbuster. BB will most likely be in bankruptcy by the end of the year and they could probably get a better deal then.
Jake’s absolutely right about their prices being too high. They should take a lesson from Hollywood video – the store near me is going out of business. There was rarely very many cars there, but when they announced they were going away, they started $1 per night rentals and the place is packed all the time. Instead of focusing on all these other possible “revenue streams” and stuff, BBV should realize “It’s the prices, stupid.”
I’d pay up to $2.50 a night. Obviously, I’d like to pay even less, but I rarely keep a movie more than one night anyway and the selection and browsability would be worth it to me.
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