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BlockbusterExpress-logoSince its purchase of Blockbuster Express (and about 10,000 BB Express kiosks) last summer, Redbox parent Coinstar has been quietly selling an undisclosed number of the inactive kiosks to third-party vendors. The company has netted a handsome $17.9 million for its trouble.

Since buying out BB Express, Coinstar has replaced many of the blue boxes with Redbox kiosks or removed the BB Express kiosks from their locations completely.

Eric Wold, analyst with B. Riley & Co. in Los Angeles, calls the sell-off of BB Express kiosks a smart move, since Coinstar can depreciate each kiosk with no impact to its balance sheet. Said Wold:

“While there was a potential opportunity to license those kiosks to third parties within non-competitive markets within a revenue-sharing agreement, we believe [the sale] was the less risky and easier decision for management to make,”

Do you miss seeing the blue Blockbuster boxes around, or is Redbox’s near-monopoly on the kiosk movie rental business a good thing?

[via Home Media Magazine]

8 Responses to “Coinstar Selling off Blockbuster Express Kiosks”

  1. Visitor [Join Now]
    DanoFive0 [visitor]

    RedBox has the market. I use it every blue moon. But I have Netflix three out at a time. The Netflix online and the new W/B online deal. I have all I really need..

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

    Expect rental rates @ redbox to slowly creep up form fewer competitors and a wholesale shift away from disk rental to streaming on demand.

  3. Visitor [Join Now]
    justme [visitor]

    I miss the blockbuster express kiosks but I don’t miss the scratched discs from it. I do believe they will continually raise their prices since their is no competition….not a good thing!!

  4. Member [Join Now]
    JoeZilch [joezilch]

    I don’t expect them to raise their prices because they already had a monopoly out in my (S. California). There wasn’t a BB Kiosk within 10 miles of me but countless Redbox boxes.

    They can’t raise their prices too much because they’ll lose their customers as they’re still competing with VOD and they only partially own the online venture with Verizon. They have started to cut down on the free rental codes via txt msg though which is smart as I use Redbox pretty constantly but rarely paid for it thanks to those freebies.

  5. Visitor [Join Now]
    Bordercollie [visitor]

    I strongly believe that DVD’s will be here for awhile. One of the biggest drawbacks of online streaming is that closed captioning is not available. I’m very surprised that the ADA has not stepped in and acted against the online streaming networks for not granting equal opportunity for the hearing disabled by not providing CC.

    • Visitor [Join Now]
      DanoFive0 [visitor]

      Bordercollie,

      Try Netflix online. They have CC Closed Caption on 80% of what they have online. And will have it on everything by 2014. I am hard of hearing. And need CC. Netflix has it online. AS does the new W/B online set up. W/B is doing a great job of getting the CC on there online movies and TV shows. As is Netflix. Netflix got Sued. And are now getting it done fast. W/B just took the hint to put it on. Amazon and RedBox did not take the hint. And someone will kick them in the butt soon. Yes it Cost to put it on. And Amazon and Red Box have the cash to do it.
      it Have a great safe day.
      Danno!

  6. Member [Join Now]
    JoeZilch [joezilch]

    As much as CC is great for some people, the very idea that the ADA would require it from Netflix or Redbox of whomever is such nanny-state paternalism that it makes me cringe. It’s entertainment. If Netflix doens’t offer CC, which I think they should, then take your money elsewhere. They’ll add it if it’s going to seriously affect their PR or bottom line. Vote with your dollars, please for love of all that’s holy don’t turn to a bunch of corrupt jackboots to solve your problems for you.

    As for the topic at hand — The real problem with streaming is bandwidth. Our national infrastructure isn’t up to the task of sending everybody HD content at the same time. Not even in the newest, best neighborhoods with private fiber optic or “high speed” wiring. The more people that transition to “the cloud”, the more you’re going to see “loading” or “content not available” on your screen.

    That, alone, will be the biggest reason to stick with physical media.

  7. Visitor [Join Now]
    DarrellP [visitor]

    I had a BB account and couldn’t play half the discs I got out of them because they were so scratched.