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big-appleBlockbuster and its kiosk partner NCR are following through with earlier claims touting a massive expansion of their Blockbuster Express network. The partners are deploying more than 200 kiosks by the end of the year in Manhattan, an area with light Redbox coverage.

The blue boxes will be placed in Duane Reade locations, which is NYC’s largest drugstore chain. The kiosks are priced identically to Redbox machines, and contain several hundred more titles than their red counterparts.
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Alex Camara, VP and GM of NCR had the following to say about the deployment:

“DVD rental kiosks are a great fit in high-traffic urban areas because they take up a very small retail footprint. . . Paired with a convenience or drug store location, it gives consumers a very convenient way to pick up their favorite entertainment titles while they shop for everyday items.”

In other Blockbuster-related news, the company’s CFO recently stated that the chain’s plan to close more than 900 stores by the end of next year could generate a $50 million to $60 million increase in pre-tax earnings.

CFO Thomas Casey also stated that with the company’s recent refinancing, they have been able to beef up their online service and in-store selection, which should place Blockbuster in a better position for a competitive end-of-year. Said Casey:

“We’re pleased with how we have been able to navigate through the capital constraints of 2009. . . With capital, we have the ability to be better in stock.
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December is by far the most important month for Blockbuster.”

It will be interesting to see what results this massive expansion in a massive market produces for Blockbuster Express. The comments are now open for your opinions/BB-bashing.

[via Video Business and Home Media Magazine]

5 Responses to “Blockbuster and NCR Place 200 Kiosks in New York City”

  1. Member [Join Now]
    Doug [mouthsmasher-2]

    Does anyone know if the studios are/will be giving the Blockbuster boxes the same treatment that Redbox currently is, where they aren’t giving them movies upon their release dates?

  2. Visitor [Join Now]
    CashewNutt [visitor]

    Yeah,y question exactly. I bet BB doesn’t have that restriction
    just because they are the studios biggest rental customer. Not fair
    by any means. BB messed up the DirecTV rental scene and now is going to
    mess up the kiosk business as well!

  3. Visitor [Join Now]
    Nomo Blockbuster [visitor]

    Has anyone shown CFO Casey Blockbuster’s debt-to-equity ratio lately? It’s over 400 percent!!! That means that for every $1 in equity that Blockbuster has, it owes $4! No capital can save you from that.

    Blockbuster is such a copycat as well. Putting up a bunch of Redbox kiosks and painting them blue and sticking a Blockbuster logo on it isn’t going to help either. Its online service and in-store selection are lost causes. Putting more money into them rather than paying off that outstanding debt is a sure way for Blockbuster to go the way of Circuit City even quicker.