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The only serious challenger to try to muscle in on Redbox’s kiosk turf has been ATM manufacturer NCR’s Blockbuster Express business. While it has less than a fifth of the installed kiosk base enjoyed by its red-liveried rival, NCR has plans in place for major growth as well as expansion of its machines’ capabilities.

Wedbush Securities analyst Gil Luria, quoted in a fascinating Fortune piece, has his doubts about NCR’s ability to thrive and survive in the DVD rental space. Said Luria:

“It’s a very risky endeavor because they got into a business as an entertainment retailer that they knew nothing about . . . The logistical part of it, the technology part of it, they are absolutely world class. But in terms of making merchandising decisions, negotiating with studios, and finding the appropriate business path, only time will tell if this is a stretch for them.”

Industry insiders such as Luria have reservations about NCR’s ability to secure deals with Hollywood. Luria does think, however, that Redbox’s recent accords with several studios may have made NCR’s road a little less bumpy. Said Luria:

“At the least, they can get the same settlement that Redbox has, and at best, they can get something that they feel is even more valuable,”

One factor that might work in NCR’s favor is the company’s plan to sell DVDs alongside the rental discs in its boxes, a move sure to please sellthrough-obsessed studio executives.

With the total  number of kiosks the market can support generally estimated to be somewhere around 60,000 machines, how big a piece of the pie do you think NCR will grab, Insiders? What do they have working in their favor, and what do you think rival Redbox will have up its sleeve to counter them?

(via CNNMoney)

9 Responses to “Analyst: NCR’s Blockbuster Express Kiosks a “Risky Endeavor””

  1. Visitor [Join Now]
    john sfrengeu [visitor]

    who comes up with this numbers ( the total number of kiosks the market can support estimated to be around 60,000 machines) I would guess its allot more than that

  2. Visitor [Join Now]
    Farva [visitor]

    Honestly to me the biggest negative about BBE is their name. I know many people don’t relate the Blockbuster name to value and customer service. Myself included. NCR should have came up with their own catchy original name.

  3. Visitor [Join Now]
    Daniel [visitor]

    Let them compete fairly, offer the same terms, availability, etc., and I’ll give them a shot. Why not? I’m not in love with RedBox, just with their offering.

  4. Visitor [Join Now]
    Willechill [visitor]

    The only good thing about the Blockbuster Express is that it gets the new releases on day one. As far as the machine it is very slow and ackward, Redbox kiosk run much smoother. If NCR gets the kiosks running better, I could help them out even more.

  5. Visitor [Join Now]
    rbfan [visitor]

    BBE has the worst customer service. Their machines are extremely slow dispensing and returning movies. If you use a coupon, their screen prompts are very misleading. They lead you to believe the coupon has been accepted even when it hasn’t. When you see the charge on your credit card and call BBE, they basically tell you that you are a liar and will not credit you. It’s not the $1, it’s the principle. Each time they have refused, I’ve disputed with my credit card and had the fee reversed. Will never rent from them again.

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      What’s the different between a successful and unsuccessful use of a free code on the bbe kiosk? Just wondering how much harder it is to use a code on bbe vs Redbox.

      • Visitor [Join Now]
        mt [visitor]

        I like that you can pick your movie and use the code online. I haven’t noticed the charge. I haven’t had any cs problems. I called once about my mistake picking the wrong movie and the girl gave me a free code. It wasn’t their mistake, but they gave me a code to replace the movie I picked by mistake. I just put the movie back in and picked a new movie as if it never happen. The machines are very slow. The think blockbuster has that I like the most is I pick my movie in the morning with a promo code and pick it up in the evening. And more new releases.

  6. Visitor [Join Now]
    Cfj52 [visitor]

    Tried the Blockbuster Express. The machine can not touch RedBox for ease of use. Took several swipes and manipulations to get my movie. Not worth the effort. Will not use it again. I will wait for the movie to make it to Red Box.

  7. Visitor [Join Now]
    Bob [visitor]

    Price is king. Where Redbox is giving me the finger with the $1.25 bull$$$hit Blockbuster Express will now get my single bills at a kiosk even closer to me than any of the Redbox locations.

    Problem solved: competition.