In a not-so-surprising move, Blockbuster – the original movie rental giant that has taken a beating recently by Netflix and Redbox – has announced that they will be placing 50 DVD rental kiosks in a pilot test they are doing.
Blockbuster previously announced their partnership with NCR – the maker of ATM machines – for the download-only kiosks they are testing in Dallas. This new announcement expands that agreement to include these new dvd kiosks.
The scary part of all of this is that Blockbuster and NCR have enough funding to enter the DVD kiosk arena with a lot of force and intensity. Check out this quote from the release:
“This alliance with Blockbuster is an exciting step for NCR as we pursue our mission of becoming the leader in the market for entertainment self- service solutions,” said Bill Nuti, NCR chairman and CEO. “Looking beyond this initial deployment, our mutual goal is to have 10,000 kiosks installed within 18 months. We are energized and thrilled to be such an integral part of Blockbuster’s strategy for providing consumers with greater choice and convenience.”
10,000 kiosks in 18 months… That is a large number and could really hurt Redbox. I wonder if Redbox had wind of this recently and that is why they delayed their IPO. News like this – especially if Blockbuster is successful in their test – could really hurt share prices in an IPO.
Anyway, read the full press release if you want the full scoop, and stay tuned for more developments on this over the next 3-6 months.
What do you think? Will Blockbuster takeover the DVD rental kiosk space and put an end to Redbox and other competitors?