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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?

36 Responses to “Blockbuster looking to take on Redbox with kiosks”

  1. Visitor [Join Now]
    Rustdog [visitor]

    Blockbuster has exclusive titles which will help. I’m interested to see if you must have a membership to use a kiosk or a discount is given for membership and what the cost will be? Is it not still around $5.00 to rent a movie at a Blockbuster store?

  2. Visitor [Join Now]
    Redboxfan63 [visitor]

    no way, blockbuster can’t touch redbox because there gonna be so over priced and the loyal customers redbox has now will always stick behind them till the end. looks like a waste of time for blockbuster for sure

  3. Visitor [Join Now]
    Ben [visitor]

    Someone needs to start offering blurays.. Even at $2/day I’d still be down.

  4. Visitor [Join Now]
    fiser [visitor]

    blockbuster will have a better video selection than redbox August looks like a slow month for new releases

  5. Visitor [Join Now]
    Chris [visitor]

    If Blockbuster really wanted to run a ‘free’ test without spending on 50 kiosks, they’d offer $1/day rentals NOW to see if anyone cared. $5/week would still look like a bargain to some, so it might not even eat into their current rentals as much as it could increase the flow of bargain hunters through the door.
    With Blockbusters repeated criminal antics making the news, I’m not a big fan of them anyway, so I’ll stay loyal to Redbox as long as it’s around.

  6. Visitor [Join Now]
    Donna [visitor]

    I live in a small town with no blockbuster but 2 redboxes. I’m a huge fan of them. It’s too easy and cheap to get a movie with redbox. Especially now, with the prices of everything going up, that is the one “luxury” we don’t have to give up. Renting movies and having movie nights with the kids is something we can do weekly with redbox. I think blockbuster will have a lot of competition here. I know I won’t be switching over.

  7. Visitor [Join Now]
    dan [visitor]

    I see those “exclusively” at blockbuster rentals, such as Superhero Movie only as a minor threat.

    Although that movie wasn’t so good, I can only imagine if they ever get an exclusive only movie that’s worth renting.

    if redbox keeps their dollar/night rentals i wont go with blockbuster.

  8. Visitor [Join Now]
    will [visitor]

    The problem with the Blockbuster idea is that Redbox has a huge lead, having locked up most of the prime retail locations. Still, a kiosk with a much greater variety of quality titles (and less of the straight-to-video junk that Redbox is clogged with) could be a serious threat even at a slightly higher price point.

  9. Visitor [Join Now]
    Alicia [visitor]

    this could work greatly or fail miserable.

    I mean honestly blockbuster is outrageous with their price. Almost 5 dollars PER rental UNLESS you pick one of their monthly plans.

    What if you want to rent just for a day … who wants to play almost 5 dollars for a 2 day rental — whereas with redbox it’s a mear 2 dollars. If you’re looking for a bargain. Redbox is it!

    If blockbuster does this, what will the price be? If it’s over a dollar, F*** it! I mean unless it’s a movie I really want that redbox doesn’t have. I will not do it and I’m sure other feel the same.

    Oh and will the Blockuster one have codes? If not, will be another reason it may fail.

  10. Visitor [Join Now]
    Stacie [visitor]

    Blockbuster has left a bad taste in my mouth and I am sure I am not the only one! I will stay loyal to redbox but am afraid they may have to step things up a notch. I hate waiting at a kiosk to return my DVD and I would like to be able to find a few more “classics” thrown in now and then.

    • Visitor [Join Now]
      Mr. Helpful [visitor]

      I hate the wait. Please find the movie online or at least on the poster in store before you step into line.

  11. Visitor [Join Now]
    Alicia [visitor]

    Oh and get this … Blockbuster is planing on raising their price to 5.99 per rental. They are getting crazy now!

    They are going to lose are their customers with these prices! It’s bad enough that are economy is not doing well … Raising prices in gas, milk, beef, etc …. Now movie rentals? COME ON!

    Plus their online offers were good until they started raising the price. When will BB stop? When they lose all their customers?

    I will not pay almost 6 dollars for a 2 day rental! When I can go with redbox and pay 2 dollars for the same amount of days.

    2 bucks (2 days) or 6 bucks (2 days) what’s the better deal? You tell me

    • Visitor [Join Now]
      Trish [visitor]

      I have no idea what some of you are thinking. Probably know nothing of economics or marketing if you thing BB boxes will rent movies at $5.

      BB will not rent movies at their boxes for $5 but will match or near match redbox prices. probably $2 for very new movies which redbox seem not to have and $1 for others or something on that order.

      A typical brick and mortar BB store costs so much in rental, labor, electricity, which is why it is expensive. but a “box” is so much cheaper.

      • Visitor [Join Now]
        Alicia [visitor]

        Um I am not talking about the BB boxes, you must have red wrong. I am talking about the stores and BB’s online services. The BB box isn’t even out at the moment, so I’m obliviously not taking about their boxes.

        And their are other rental store who charge way less and have the same new movies (except BB exclusives) AND even with the mortars for their stores … what is the deal online? Why has the price jump so high? Their no excuse, they getting ridiculous. Plan and simple.

  12. Visitor [Join Now]
    Gordo [visitor]

    Don’t be hatin’, competition is good. Just think about it this way, what do you think red box’s long term plan is? They want to dominate the market, and then once they have become firmly established, well known, used by everyone, they will jack up prices. Soon you will be paying the same as you did in a traditional video store like blockbuster, because the traditional video store will be gone. Only you may have worse selection, and possibly longer annoying wait times. Bring in competition from the likes of blockbuster and maybe things will actually improve instead of getting worse? Competition can ensure lower prices longer term, better selection, more features. Blockbuster can learn from some of red box’s mistakes – I’m sure their machines right off the bat will have the anti-fraud features redbox had to add after the fact, and blockbuster machines SHOULD, if they are smart, have a slot where people can return movies just be sticking it in (maybe on the side or some out of the way spot) regardless of how long a line is or if there is some ditz there trying to figure out what they want to rent. This was a major oversight/mistake by Redbox.

    • Visitor [Join Now]
      FISER [visitor]

      here in central valley Calif, Vons has dvd play kiosks, Foodsco has MovieCube, Walmart and SaveMart have Redbox , they all have about the same movies DVD play has a better selection for me,i would like to see more foreign films like the legend of the shadowless sword ,CJ7 at rebox

      • Visitor [Join Now]
        John [visitor]

        Got charged $1 on my free rental. and that was for something 4 days ago. Luckily it wasnt $30 as some people experienced.

        • Member [Join Now]
          daniel644

          if you kept it past 9 pm the day after renting it then you were charged the dollar because the free code only gives you the first day free.

    • Visitor [Join Now]
      Alicia [visitor]

      and when red box does that (IF they do) A new service will come out & I will go with that!

  13. Visitor [Join Now]
    Elhuevon [visitor]

    How about if Redbox and Netflix join. The convenience of Redbox and the selection of Netflix. You could return Netflix movies to the Redbox like an instore exchange at the Blockbuster or reserve a rare or foreing title to be picked up at the rebox.

    Any supporters for RedFlix? or NetBox?

    • Member [Join Now]
      daniel644

      as both a redbox user and a netflix member I have to say it would be useless to try to do something like that the only reason it works for blockbuster is because the stores have a far wider selection of movies then could ever be put in a kiosk.

    • Visitor [Join Now]
      MREVOVIII [visitor]

      I agree with both of you on this and the only problem with it is preordering a dvd to a(n) redbox where thousands of people reside and would be using and preordering to this NETBOX, they would have to have a huge storage in the container have people come and drop those movies off daily/hourly ect. and theres just alot of reasons why this really good idea wouldnt work.

      but like i said great idea,
      and this will absolutly not be competion for netflix/redbox B.B. will still be there same prices i mean how can you beat $1 for a new realese you cant i think the only reason like you said for NETBOX is to get older titles..

      its just my opinion like to here back on others thoughts on this “NETBOX”!

      thanks,
      D”EVO”N
      AKA MREVOVIII

  14. Visitor [Join Now]
    Caroncha [visitor]

    Who cares? If it’s good for consumers, go for it.

    My only problem with Blockbuster is that they can’t seem to come up with an original idea, they just jump to what someone else is doing: first they copied the Netflix model (and they sucked doing it), and now they want to copy the Redbox idea. They should just decide what they want to do already.

    • Visitor [Join Now]
      Alicia [visitor]

      HAHAHAHA you’re right … at first they had decent online prices, then they jacked the price up months after! that’s why the people I know drop the bb online service and went back with NF

  15. Visitor [Join Now]
    mark [visitor]

    BB will probably put many more movies out.There is alot of movies each week besides the top few that gets attention.$4.79 dvd $5.29 Blu-Ray is the price of BB rentals.Games are $7.99 a week but they have no late fee and you can play that game almost a month before anything would happen.Thats a good deal,you can beat a game in that time.Movies on the other hand,you watch and take them back.I still can not get Scorpion King 2 or Street Kings or Prom night,there just is not enough in the boxes,there is 10 in my radius all empty.Thats something to think about!

  16. Visitor [Join Now]
    Tristan [visitor]

    Monday’s promotional code worked like a charm! Thanks Redbox. “Great Value, Great Price”

  17. Visitor [Join Now]
    Tristan [visitor]

    I used my Wednesday Redbox promo code yesterday. I Didn’t run into one problem! “Keep it up Redbox, your’e doing great!”

  18. Member [Join Now]
    redboxguy

    Red Box is a way better deal than blockbuster! $5.49 for two nights compared to $1 a night. Blockbuster will probably have to do this or die! The Blockbuster where i live is a ghost store. When i used to go in there (before i knew about red box) i was the only one there.

  19. Member [Join Now]
    JonInRI [joninri]

    The only way the Blockbuster kiosks will work is if they do as cheap as Redbox, other wise why would anyone rent from them instead of Redbox.

  20. Visitor [Join Now]
    Dale [visitor]

    Redbox will continue to get my business. Blockbuster has overcharged me too many times in the past.

  21. Visitor [Join Now]
    Dale [visitor]

    Our closest blockbuster store has closed and given up.

  22. Visitor [Join Now]
    Jim [visitor]

    The latest news is that Blockbuster is in trouble. It is considered a do not buy on Wallstreet. The stock 52 week high is about $5. Now it is just over a $1. I understand why Blockbuster is try a new market with kiosks. I doubt though they will get it right. I recently dropped by Blockbuster online membership and am using Netflix(older releases) and Redbox(new releases).

  23. Visitor [Join Now]
    Tristan [visitor]

    “RedBox Rocks!”

  24. Visitor [Join Now]
    Tristan [visitor]

    Rebox is a great service and provides great customer service. But like another customer had mentioned earlier. Redbox needs to add a return drop box. I would like to be able to return my movie in a timely manner. Rather than waiting on some idiot to read each movie description and take ten minutes to decide on a movie. Other than this, no complaints. GO REDBOX!!