Rich Fiscus
22 Apr 2009 12:22
Blockbuster's hardware partner in the DVD rental kiosk business, NCR, has just purchased the second largest DVD kiosk operation in North America. The largest operator is Redbox.
TNR Holdings already has their The New Release and MovieCube kiosks in supermarkets around the US and Canada. Those machines will presumably be replaced with Blockbuster Express branded machines as soon as possible.
Blockbuster hopes to eventually offer not just DVD rentals, but also downloads to portable media players from their kiosks. CEO Jim Keyes has made it clear he sees the company's future tied in part to a successful transition from brick and mortar stores to kiosks.
The company's other major emphasis right now is on making sure their online service, Total Access, is profitable. That was a change last year from the previous CEO's strategy of competing with Netflix for the most online customers.
The Blockbuster kiosks face an uphill battle competing with the number one player, Redbox, whose kiosks are already in prime locations like McDonalds restaurants, Wal-Marts, and several supermarket chains.
The transition from traditional stores to a more self-service and online operation played a part in last year's $374 million loss. NCR's investment in the new technology is key to avoiding a similar performance this year.
In addition to a built-in customer base, the TNR acquisition gives the Blocbuster Express venture an experienced sales, installation, and maintenance staff.