NCR Adds 500 Blockbuster Express Kiosks in the South29 Jun, 2010 By: Erik Gruenwedel
NCR Corp. June 29 said it signed separate deals to add 500 Blockbuster Express rental kiosks with regional convenience stores located in Tennessee, Kentucky and the mid-South.
Following successful pilot programs, NCR will install kiosks in nearly 100 Daily’s Convenience Stores and 400 units at Mapco Express locations. It wasn’t immediately clear whether the Express kiosks are replacing rival Redbox or third party units.
NCR, which is rolling out 10,000 Express kiosks nationwide through the end of the year via a license deal with Dallas-based Blockbuster, has achieved significant market penetration by supplanting Redbox when coveted retail locations come up for renewal.
Earlier this year Blockbuster Express kiosks replaced Redbox units at Sheetz and Speedway convenience stores in the Northeast. In fact an NCR representative said Express kiosks had displaced Redbox units in seven out of eight retail spots that had come open recently for negotiations.
Alex Camara, president of NCR Entertainment, in an interview earlier this year said all retail locations are done on a revenue-sharing basis, with kiosks presented as a turnkey solution to retailers. He said negotiations don’t just involve offering higher commissions, but also underscore the fact that NCR kiosks have greater disc capacity and more types of movies, which combined 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.”
With kiosks expected to generate 30% of rental revenue this year, according to The NPD Group, NCR will also begin offering Blu-ray Disc rentals by the fourth quarter.
Despite increased competition for high-traffic retail locations, Redbox in May said it completed production of its 25,000th DVD rental kiosk. It will begin renting Blu-ray titles this summer for $1.50 per day.