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Blockbuster Cutting Into Redbox Lead in Southern California

12 Sep, 2010 By: Erik Gruenwedel

The rollout of Blockbuster Express rental kiosks in more than 300 Vons supermarkets in Southern California is helping Blockbuster cut into a vending market heretofore dominated by Redbox.

In a search for Express kiosks in Orange County, 22 units could be found within a 15-mile radius, with 18 machines at area Vons locations, including one device three miles away. By comparison, a similar search in March found just four Express kiosks, with the nearest unit nearly 25 miles away. There are 50 Redbox kiosks within an 11-mile radius, including one unit 0.8 mile away, the same as in March.

Installation of 10,000 Express kiosks is being financed and implemented through a license agreement between Duluth, Ga.-based NCR Corp., and Dallas-based Blockbuster.

Through Sept. 15, Blockbuster Express is offering Vons customers a free one-night DVD movie rental with the purchase of another $1 DVD rental. Users must have two DVD movies in their rental queue and enter the code #GL16B to get the special discount. Express kiosks not located at Vons are offering a free rental through Sept. 13 and require the code #START.

Movies not returned within the normal rental window will be subjected to additional daily rental rates and charged to the user’s credit card upon return to the kiosk.

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