Over the past few weeks there has been some interesting news coming out of the Blockbuster camp about their plans to launch 10,000 DVD rental kiosks by the end of next year. This is a bit of a delay from the original announcement (which had the kiosks running by the end of this year), but could still be a game changer.
Blockbuster’s partner in all this is NCR, and they have recently announced the purchase of the second largest DVD rental kiosk operator TNR / Moviecube. TNR had about 2,200 kiosks at the time of acquisition, far behind the 15,000+ that Redbox operates, but still almost a quarter of their goal.
I have to wonder if another acquisition (DVDPlay?) is in the works. If so, that would get them to 40% of their goal without having to deploy any kiosks of their own. I guess we will have to wait and see how this plays out.
The question is, can Blockbuster compete in this market that has been wholly dominated by Redbox over the past 4 years? Or, did they wait too long?
Personally, I think they can only compete if they are willing to match Redbox’s $1 price point, and I am not sure if they will be willing or able to do that, especially considering their financial woes as of late.
What would make you rent from Blockbuster instead of Redbox? Share your thoughts below…