It’s an epic day in Redbox news. One of the biggest stories is the acquisition of NCR’s DVD kiosk business by Redbox parent Coinstar. The business, currently operating under the Blockbuster Express brand, consists of about 10,000 kiosks.
The deal is worth more than $100 million, and includes a five-year manufacturing and services agreement with NCR. The Blockbuster Express license does not accompany the agreement, which would seem to signal an end to the BB Express brand once the agreement is completed.
Scott Di Valerio, CFO of Coinstar and interim president of Redbox, was effusive about the deal:
“We are very pleased to enter into this agreement with NCR . . . As the global self-service solutions leader, NCR has strong technology, manufacturing and servicing capabilities, and we look forward to leveraging their expertise as Coinstar continues to grow its core automated retail businesses and expands its offerings.”
John Bruno, EVP and chief technology officer for NCR, was also enthusiastic:
“Through this agreement with Redbox, NCR will be better positioned to focus on expanding our business in our targeted industries . . . Additionally, this transaction affords us the opportunity to develop a long-term strategic relationship with Coinstar and partner on delivering new and innovative solutions to the market.”
What do you think of this news, Insiders? Will you mourn the (apparently imminent) death of Blockbuster Express, or is competition always a good thing, even for you favorite brands?
(via Home Media Magazine)