Blockbuster Express, Redbox’s closest rival in the kiosk movie rental business, may soon be spun off by its parent company. Bill Nuti, the CEO of BB Express-owner NCR, recently commented that his company is discussing the future of its kiosk business with several “interested parties.”
Comparing his company’s newly-acquired hotel and restaurant software systems company, Radiant Systems, with Blockbuster Express, the latter came up with the short end of the stick.
Said Nuti:
“In entertainment we undertook an initiative to grow in an adjacent self-service market, the DVD kiosk business . . . While that initiative has been successful, it does not offer nearly the same type of complimentary [sic] industry [opportunity] as Radiant’s business . . . While entertainment remains an important self-service opportunity for us, we are actively exploring strategic options with a few active and interested parties,”
Merriman Capital analyst Eric Wold believes that BB-owner Dish Network, who is currently fighting to strip the Blockbuster name from NCR, “is probably the most likely buyer,”
Wold also opines that Blockbuster Express arch-rival Redbox could be a possible buyer, but there are some major caveats:
“Redbox would be a logical buyer if NCR sold the kiosk division due to the spat with Dish Networks . . . However, following Coinstar’s recent agreement to install coin-counting kiosks back in Safeway stores after an eight-year absence and the potential that this leads to additional kiosk concepts being added to Safeway stores, this changes our thinking . . . There is no value to Redbox in the Blockbuster license; there is no value to Redbox in the physical kiosk assets (which would need to be replaced); and there is no value to Redbox in the studio distribution contracts as Redbox has its own and they would likely not transfer,”
Over to you, Insiders. Will the nearly 10,000 Blockbuster Express kiosks currently in operation fall under new management, or possibly even be eliminated? With a potential windfall of customers from an embattled Netflix possibly heading its way, what could the sale/dismantling of BB Express do for Redbox’s fortunes?
(via Home Media Magazine)
I am a long time fan of Redbox but I work for a company that loads the movies for BB Express and I couild see Redbox taking over BBs locations with there Kiosk’s. RB are better Maintain and the quaity of the dvds seem better.
BB dvds seem to get scrated up from there cases. GO REDBOX…..
Now that’s what I call company loyalty! I’m glad you don’t work for me! But, I digress…Redbox is much better!
It could just be honesty. If you see a problem and ignore it then the problems never get fixed.
I agree. Whoever designed BB Express’ case is insane. Using friction to contain a scratch-able surface. I do like that you can use codes online to rent from BBE. I wish Redbox would add that option.
Like most “new fads” Red Box was hot out the gate with a great idea that seem to give the greedy folks at BB a run for their money. It was great to feel that you could get an entertainment valve that helped most of us stretch out our already over-stretched dollar….but then the games began; RB started loading their boxes with the same old crap that HBO was shoving down people’s throat for a premium price….”Tootsie or Mrs. Doubtfire”? Premium Movie channels? Really?? But then BB saw the money they were losing with their stores and the money they weren’t getting at the kiosk, so they got in the game and in order to catch up they introduced blu-ray for extra $$ and of course the majority of their new releases were in blu-ray with a limited amount in regular format, then they started having “hot titles” for three times the original $$$! Their greed is offensive and those of us who allow it are simply “simple”.
RB… you’re out in front by a nose but I’d like to see less crap from 10+ years ago in your boxes and more (quantity) new releases available on release date as not to drive to three different RB’s to find a new release. I am a die hard movie freak whose just getting tired of the corporate crap! Guys like me, renting 3-4 movies per week, every week waiting for movies to be made are the ones who make your life possible! I’m not feeling the love!
Why wouldn’t redbox buy the BB machine business and just get rid of it. Eliminate the competition and gain some more locations possibly. I love redbox and hope they can continue to grow. I would love to see some type of streaming from them soon.
Redbox should buy them all, and slap a sticker on them that says “Bluebox”. They can probably get them for a song compared to buying all new Redboxes. Consumers don’t care about branding, as much as they want value, and concienience.
It makes no good business sense for RB to buy the BB express boxes just to eliminate some competition. It would be a needless expense which would ultimatedly result in higher prices to us renters. It is obvious from the Dish network comments that there is little committment to the BB express concept at this time. I say just let the natural order of the jungle i.e. the business world take its course and eliminate the competition. The fittest will survive!
I too think BB will die of natural causes so RB shouldn’t waste money on it. They would lose a fortune retrofitting the machines assuming that it’s even practical to do so. As for gaining the locations, once BB is gone those places will be very willing to have a RB fill the spot left behind.
Now seems like the worst possible time for NCR to be selling the BBE brand. Shouldn’t they finish the legal battle first? The brand has to be greatly devalued right now. Is this a sign that the future for BBE is worse than even we realize?
I hit redbox all the time. I have netflix but going to drop them. I did get a free 30 trial bit from Block Buster. It is a new thing.Two out at a time, and I can take them back to a BB store and get two more free. If that is right, I can get 4 DVDs a week. 2 in the mail. 2 in the store. The next week the same. That will = 16 DVDS a month. I will try it for free a month. If it craps outy I can drop it. Time will tell. This DVD by mail is going to take a big crap out in 3-5 years. It will all be online only. And cost about 20 + a month. I see it coming…
Be well all.
You still have a BB store to take discs back to? We haven’t had one here for 2 years.
As for Redbox buying BB, never happen. They will millions for it for one. For two, those machines are not compatible with redbox machines, so discs from one could not be returned to the other, which would make redbox have to swap those kiosks out at their own expense, and third, the locations BB express are in are crappy locations which redbox could have gone in to had they wanted to.
Exactly. Redbox in my area is in all the prime locations (Walmart, CVS, Walgreens, Kroger).
BB express is in run down part of towns or at stores with not nearly the same amount of foot traffic.
Where I live it’s more even. There are more RBs but the BBEs aren’t in the ghetto. Walgreens will have a RB at it’s three locations and the sole Rite Aid will have a BBE for example.
I welcome all the competition. Redbox raised their prices to 1.20. Why? Because they can. Competition keeps prices down. Don’t wish for other companies demise. Once the competition is gone Redbox will screw you like all the rest.
There is a BB in our Quick Trip. I did not even know they had one until I saw a sign. It is in a rear, hardly traveled spot and they charge $2.99 for a new movie.
I love Netflix. The streaming quality is superb and they have a zillion movies and tv shows available. I don’t have the time to watch all of the ones I want each day. I usually watch 2 movies and 3 tv shows such as Star Trek, Twilight Zone and Thrillers each day. I am retired. I still love Red Box even though they charge $1.15 now. It is still a super good deal.
We do have a BB Express close by and we really like ours. One nice thing BB Express has that Redbox does not have is if you have received codes for free movie rentals, you can rent your movie ON-LINE with your codes and go to the BB Express to pick it up. You cannot rent a movie with Redbox on-line with a free promotion code, hoping that by the time you get to a Redbox your movie is still there.
as luvbaja pointed out they dont have to retrofit the machines.
They can keep them exactly as they are. As long as they own both machines then they essentually have a monopoly on the local rental market. I agree though if BB machines aren’t profitable or want too much, then they shouldn’t buy them because they would eventually die off on their own.
On another note I see no reason to scrap all those machines. They could be used to sell old movies or special interest titles. Or they could be sold individually to porn shops.
That’s assuming the BBE machines can accept Redbox cases. There is no way that big black BBE sleeve is going to fit into the little RB slot. Being able to return movies to any location is one of the key success points.
No that isn’t what I said.
You are assuming they would have to all be compatible. Yes it’s unlikely that they could make them all compatible without great expense. The thing is, they wouldn’t HAVE to.
They could keep both product lines seperate as they are. By owning both Kiosks you would have a monopoly and the possibility of one selling higher priced items while the other rents less expensive ones. If you don’t mix the brands and confuse consumers there is no problem (Keep the colors the way they are.)
Also if a location seems unhappy you could always offer to provide them with the other kiosk and move that one elsewhere.
As stated before they would have to purchase them at a fair price since by owning both, they aren’t really increasing value.
The kiosks are going to need to offer a one price per month plan I think.
1 at a time for say $12.99 or something ?
I think thats what DVD Express charged years ago.
Im surprised that neither RB or BBE has offered that.
So, two peanuts were walking down the street. One was a salted.. peanut.
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