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NCR Corp., who licenses the BB name for its Blockbuster Express kiosks, plans for massive growth in 2010 and beyond for its newly created entertainment division. NCR CEO Bill Nuti said in a recent call with investors that the blue boxes represented the “headline event” of the year for NCR. The company plans on an installed base of 10,000 DVD rental kiosks by the end of this year and anticipates $125 million to $155 million in revenue from the blue boxes.

Nuti feels that the market is ripe for a second major kiosk operator and his company has the means to make it happen. Said Nuti:

“The DVD kiosk market is a large and rapidly developing market opportunity where our size, retail relationships and technology leadership position us to be the global market leader for years to come,”

NCR EVP of industry solutions, John Bruno, cited data from The NPD Group saying that self-service rentals would account for 30% of the movie rental market by year’s end. According to Bruno:

“Nearly one in five movie watchers are already renting their DVDs and Blu-rays from rental kiosks like ours. . . This could grow to one in three in 2010.”

Bruno also claimed that NCR is not encountering the same resistance from Hollywood that rival Redbox has encountered, saing that the blue boxes offer multi-channel offerings, including sell-through. Said Bruno:

“[Our kiosk] is not just purely a rental arbitrage, which is why I expect it to be received more favorably [by studios]. . . And it has been.”

According to Bruno, “it takes about a year for a newly installed kiosk to reach its mature revenue level, or about $40,000 in revenue per kiosk annually.” NCR also plans on integrating SD card movie downloading capablilities into its kiosks as digital downloading becomes more mainstream.

The way things are going, is it possible the Blockbuster name could live on only as a sticker slapped on a blue box? How is the rental market going to adjust to a major new force in the kiosk business?
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Does Redbox have anything to worry about from NCR and its big plans?
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Leave your opinion in the comments.

(via Home Media Magazine)

16 Responses to “Blockbuster Partner NCR Sees a Big 2010 for its Blue Boxes”

  1. Visitor [Join Now]
    Vernon Dent [visitor]

    It’s about time NCR got of the decaf.

    Every redbox kiosk should have a bluebox next to it; and where there are no redboxes… two blueboxes.

    • Visitor [Join Now]
      Tinybrat [visitor]

      Yeah, then you’d see a long line at redbox and nobody at the bluebox. The funny thing is, they say 10,000 machines by the end of the year, yet only 100 so far have been installed this year. Hmmm… Course they said 10,000 by the end of 2009 too. That worked well. I predict the future, their statement in January 2011 will be 10,000 kiosks by the end of the year.

    • Visitor [Join Now]
      Vernon Dent [visitor]

      It’s about time NCR got off the decaf.

      Every redbox kiosk should have a bluebox next to it; and where there are no redboxes… two blueboxes!

  2. Member [Join Now]
    MovieWatcherSupreme [moviewatchersupreme]

    I have seen these around. Darn copycats. They wanted a piece of the sweet Redbox action, I see how it is. Maybe movie gallery should have started Yellowboxes, then maybe they wouldn’t have gone bankrupt. O, I forgot they went bankrupt cause they suck. Back to the topic! Now we need codes for these things too!

    • Member [Join Now]

      Some blue boxes have also started popping up here. I signed up for their online alerts and have been getting rental codes every week. They range from free 1 night rentals to rent 1 get 1 free.

      The few times I have used one, the movies I really wanted to see were not available. Another disadvantage is that they don’t have a way to look up movies in the kiosks and rent online, so when you go to the boxes you have no clue what is there.

      • Member [Join Now]
        MovieWatcherSupreme [moviewatchersupreme]

        You would think if they wanted to compete with RedBox they would include those features you mentioned. Well I guess they must be somewhat popular being that you can never get the movie you want. I love that online look-up feature though, that is a bummer. It will be interesting to see how these units stack up against RedBox.

  3. Visitor [Join Now]
    slidecage [visitor]

    If blockbuster was smart (and dont know if this could even happen) blockbuster should tie their rental boxes into the online program.. return a movie to a machine and have your choice of a movie out of the box or a new movie shipping as soon as you leave the old one in a box (like they do in store now)

    love to see more machines around here.. right now with the problems i had with redbox the last month i decided to give netflix a 1 month chance to see if they get my business back…. maybe in march i will go back to redbox but for the month of feb unless they have free codes Redbox will probally not get a buck of my cash..

    • Member [Join Now]

      Agreed which is why I think it’d make sense if Redbox/Netflix did a merger/buy out thing. There is a problem though… those discs would need to be mailed in a container that was kiosk friendly or the kiosks would have to have empty sleeves “just in case”, coupled with the need to put UPC-like codes on the existing library of discs to track them. So something like this probably won’t happen overnight.

      I thought too these kiosks were expected to work with their download service; rather than download a movie at home, you’d go to a kiosk and could pick up a digital copy of a movie or the DVD. BB seems to be slow in going there.

  4. Visitor [Join Now]
    Firstlawofnature [visitor]

    NCR is driving the kiosk business and not BBI therefore it is unlikely that they will attempt to leverage each others assets. There will be a lot of noise but the odds of NCR being successful in this business is rather low. Maybe NCR should start an airline while they are at it. I mean they make airport check-in kiosks right?

  5. Visitor [Join Now]
    Cory [visitor]

    Why is blockbuster trying to play catch up with Redbox? Why no leap frog them and work a deal to deliever movies through the Internet in HD for $1. Pay Per View rules them all if they didn’t charge so much. $1 PPV and Redbox dies.

  6. Visitor [Join Now]
    rb [visitor]

    If Blockbuster Express offers the same low rental price and convenient locations where you can rent or return anywhere from as does Redbox, then I predict Blockbuster Express will be a success. Complaining customers who dealt with the b&m Blockbuster in the past will forget their dissatisfaction with Blockbuster if they see low cost, convenient BB Express kiosks popping up everywhere–especially if they offer a better rental selection than Redbox and other offers like codes and BOGO. Right now there’s a lot of disgruntled Redbox customers (due to their poor rental selections, problems with kiosks, and poor customer service) that a lot of Redbox customers will have no problem jumping ship over to give Blockbuster Express a try. I think this is a perfect time for BB Express to offer kiosk competition. Competition is good for the customers. If BB Express is well managed, it won’t be soon before this site will have to be renamed as Insideredbox and Beyond to reflect other kiosk rental giants other than Redbox.

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      BB offered the ‘exact’ same service as netflix at a lower price and still could not take much share. BB is trying to be competitive at every possible point of video distribution which ironically guarantees they will excel at not a single one (except for stores). Others have done far far better by being the best in a single channel.

      • Member [Join Now]

        blockbuster also screw many people over (their online) said people were keeping discs when all the movies were return… if you got too many movies they cancelled your account

  7. Member [Join Now]

    Saw a new BB box installed less than a mile from my house. Rented Love Happens (tough to find on Redbox) and Whip It (not offered by Redbox) with a rent 1 get 1 free promo code. Both services have advantages. The big BB advantage appears to be that they are not having problems with their supply of new releases. They even have the new WB releases that are delayed a month on Netflix.