Blockbuster Express Takes ‘QuikTrip’ Across Nine States6 Jul, 2010 By: Erik Gruenwedel
NCR Corp. July 6 said it is installing Blockbuster Express movie rental kiosks in 500 QuikTrip convenience stores located across nine states, including Arizona, Illinois, Iowa, Georgia, Kansas, Missouri, Nebraska, Oklahoma, and Texas.
Duluth, Ga.-based NCR is funding the rollout of 10,000 Express kiosks this year through a license agreement with Dallas-based Blockbuster. Together with Redbox, the two companies dominate the burgeoning DVD kiosk vending market. Indeed, kiosk vending is projected to generate more than 30% of rental revenue this year, according to The NPD Group.
It wasn’t immediately clear if the Express kiosks are replacing Redbox units, many of which have expiring license agreements with third-party retailers. NCR has made no secret of its efforts to outbid Redbox when attractive high traffic retail locations become available. All retail locations are done on a revenue-sharing basis, with kiosks presented as a turnkey solution to retailers.
In a previous interview, Alex Camara, president of NCR Entertainment, said negotiations with retailers don’t just involve offering higher commissions, but also underscore the fact that NCR kiosks have greater disc capacity (900 discs vs. 500 for Redbox) and more types of movies, which combined he said generate higher revenues.
“[Disc] capacity is a benefit for us, and we have digital signage on kiosks that retailers appreciate because it helps them market and promote DVD rentals,” Camara said. “[Kiosk rental] is a very low margin business. We only make money by renting lots of movies. It is a volume business.”
Mike Thornbrugh, with QuikTrip, would only say that Blockbuster Express kiosks represented a “perfect addition” to its service offerings and enabled the chain to add entertainment to the list of items offered to customers.