Blockbuster Express customers will be getting more entertainment options this summer when the blue boxes will reportedly begin selling new-release titles.
Blockbuster Express, which is owned by NCR Corp.
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, is not subject to the same favorable terms that Blockbuster stores enjoy from Hollywood studios. The company has followed a workaround program similar to rival Redbox by purchasing new release titles from third-party retailers on the day they are released.
Alex Camara, president of NCR Entertainment, wishes the situation was different:
“We want to have a direct relationship with the studios to have better deals,”
What price point, if any, would entice you to buy a new movie from a BB Express kiosk, Insiders? Redbox already sells used discs at its kiosks—could a similar move be in the works for them as well?
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(via Home Media Magazine)
Get off the decaf Alex Camara, president of NCR Entertainment and build out the kiosk network! Float a bond issue, borrow some money or just do it!
“We want to have a direct relationship with the studios to have better deals,”
If NCR had the install base of vending machines, it would get better deals from the studios!!
In other words, how can Insiders buy or rent if the nearest source is too far away?
“If NCR had the install base of vending machines, it would get better deals from the studios!!”
Yeah, ask Redbox how that’s working for them. They have 20,000+ kiosks and still can’t get the studios to work with them. They are in all the major chains, NCR can’t get a decent name to go with them for anything, why would the studios help them anymore than redbox?
“The company has followed a workaround program similar to rival Redbox by purchasing new release titles from third-party retailers on the day they are released.”
What they don’t tell you is NCR is buying the discs from Canada.
What about retailer relationships? Any retailer that sell DVDs doesn’t want a box in front of the store doing it. NCR has an uphill battle.
blockbuster express will get deals from studios because they said they werw going to raise their prices to $2 a day plus help on the sell thru. eventually the studios will work with them because of their pricing leaving redbox out in the cold.
It only makes sense for NCR to charge $2.00 for a NR for the first 28 days.
It will make the studios happy and their customers happy.
Redbox should have done this before they launched their lawsuit. Now it is too late.
NCR has a distinct advantage over Redbox if they can manage a proper buildout.
There is no buildout to manage unfortunately for them. redbox probably has all the agreements that are worth anything in the industry and what’s left unclaimed is probably just the scraps. Unless NCR plans to offer up their souls to steal a big account away then they will not be able to grow. While they sit and flounder redbox just keeps growing. We can argue all we want about the deals and studios trying desperately to cling to a system that no longer works with the American public but I imagine the battle for retail partners is just as significant in the whole kiosk war. BY the way, I saw DirecTV just did something new today with VOD
You are dreaming. This is no advantage. Redbox can take any deal NCR gets if they so choose. Netflix is to total access as Redbox is to NCR express. NCR is at a distinct disadvantage. NCR has over promised and will likely under deliver.
If NCR express gets studio deals @ $2 then obviously Redbox will be able to take the same terms. Won’t be a competitive advantage for NCR express. And like I said retailing DVDs which is low margin anyway isn’t going to win the hearts of retailers. Those that sell them want in-store traffic not out of store kiosk buys. NCR should just buy CSTR if it wants to get into the network business. That would be a much more credible way to get into this business.
Redbox has already been offered similar terms which they rejected out of hand.
The have burned too many bridges and that is something you don’t do in the entertainment industry.
I suspect the studios want to crush Redbox now. I’m not sure Redbox would have access to those deals even if they wanted them. I’m sure there is some fine print in the contracts that will give the studios an out.
FLON, you keep forgetting what a fine margin of profit there is in the kiosk business. If NCR can even take away 10% of Redboxes business, Redbox is in big trouble.
There is a sizable portion of Redbox customers that will pay $2.00 instead of $1.00 to get their DVD in the first 28 days. Redbox knows this and NCR knows this.
Look for a shake up in the Redbox higher ups in the days to come. CSTR is going to have to sacrifice someone to the volcano gods in order to get the studios to cut them a break.
The bridge burners seem to do pretty well in the vid distr biz. I’m confident that any deal that gained traction for NCR could be taken by other players.
I’m not forgetting anything. If NCR grows it isn’t necessarily coming from redbox. And doing so for NCR will be very challenging as they do not have the scale, experience or best locations and on top of it all they have to pay BBI a rev share off gross. In essence they would be attempting to replicate the operations of redbox. That’s an expensive proposition that will have a real impact on their earnings just to get what redbox already has today. BBI isn’t rooting for them. Good luck on that. NCR express has about the same odds of success as total access did.
‘There is a sizable portion of Redbox customers that will pay $2.00 instead of $1.00 to get their DVD in the first 28 days. Redbox knows this and NCR knows this.’
Great news. This will expand the kiosk market even further. Redbox will clearly adjust pricing to optimize its revenue.
I’m looking for an NCR express shake up first.
It doesn’t matter what NCR does. Blockbuster is on their way out, which will leave NCR with kiosks featuring a defunct business name on them. If NCR were smart, they would sell their contracts and get out of the dvd vending business. They have so many other much more valuable interests which they should continue focusing on, rather than trying to enter a race against an opponent who has already crossed the finish line.
Its been a year since NCR first announced their intentions to be at 10,000 kiosks, they still aren’t 1/3 of the way there. The nearest one to me is over 1,000 miles away, yet there are at least 40 redbox kiosks in my city.
What does NCR think selling new releases will do for them? They might make $1 or $2 off each sale, but really, how many sales will they get nationally? Maybe 100 of each new title? Is that worth taking up space in the kiosks? It won’t win them any bonus points with the studios, unless of course they agree to sell the new releases with zero profit to them in exchange for getting to rent titles on the day they come out, that is the only reasonable outcome I can see to them selling dvds for the studios.
Last I checked retailers wanted consumers to walk in the store to buy DVDs. It’s a dumb idea from a mgmt team out of ideas. Next they will offer a massive rev share to retailers and studios to try and displace some redbox stores. They may find a few takers but this will mark the beginning of the end of their appetite for pain in this business. This will be NCR’s total access hail mary.
I have yet to see any of these Blue Boxes anywhere….doesnt seem like a legit threat to RedBox
NCR/Blockbuster has multiple copies of Avatar and It’s Complicated in many of their blue boxes as you read this. Avatar will be availble about 7:00 AM eastern time Thursday.
Most new releases are avaiable the same time on Tuesdays.
How are they allowed to do so? I do not know. I just know they are there (first hand knowledge).
Yup, I rented my copy of Avatar today from Blockbuster Express and was able to rent it online on their blockbusterexpress.com site!