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 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.
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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?
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I believe that Redbox can compete and keep up with Blockbuster. One edge that Blockbuster may have over Redbox, is the wider selectionand variety that they offer. If Redbox offered a wider variety, they would definitely have the advantage.
each rental kiosk should have two or three titles of popular dvds and not put in dvds that i have watch last year and on slow weeks add some foreign films from Asia like dvdplay does september movie line up looks weak but iron man come last week of september
We have both a MovieCube and Redbox here. 2 issues with MC: One, very little promotion ala free movie codes and two, MC’s rental interface and rental cycle time is horrible. MC movies cannot be sorted by release date and is slow (requires scrolling thru pages of movies, time killer). Also, the time it takes for the mechanical device to spit out or receive a dvd is so long that one might think the machine was broken, a good 60+sec. The dvd cases are a pain to use as well.
The important thing is LOCATION, LOCATION, LOCATION. There’s only so many high traffic spots available and Redbox has a big headstart. As long as Redbox keeps signing up major chain stores they should stay on top. I’m waiting to see them in Target.
Redbox will last a long time. Redbox has 3 main competitive advantages. The free movie rental codes on Mon and Wed. They longer rental times with movie cube hear you have to return movies by 7 pm. Redbox also allow you to reserve movie online before going to the kiosk, the is a big help. You are assured the movie you want before leaving the house. If Redbox keeps it up they will be on top for awhile.
It wouldn’t surprise me to see Redbox eventually buying out Moviecube. I think Redbox is awesome. The only time I go to BB or Hollywood anymore is if I can’t find the movie at Redbox, i.e. Felon.