This is quite interesting news…
If you remember, Blockbuster and NCR made an agreement last month that will get Blockbuster 10,000 kiosks over the next year or so (if testing goes well). Now, we are seeing a similar agreement between NCR and The New Release (owners of MovieCube).
NCR will make as many as 1,400 new kiosks by 2010 for the No. 2 movie-rental kiosk company, behind Redbox. The New Release, which said in February that it received about $11 million in funding to add about 1,000 machines by the end of the year, has 2,200 kiosks, or about one-fifth of Redbox’s machines.
The article (from VideoBusiness) also notes that NCR has acquired a minority stake in The New Release. It sounds like NCR is hedging its bets by investing in both companies, a pretty smart move by them, if you ask me.
The most interesting part though is all of this interest in the DVD rental kiosk business as of late. Redbox has paved the way for all of these competitors, and now they may be getting a little worried.
The question is: How long can Redbox stay on top?