NCR Looking to Sell Movies at Retail25 Mar, 2011 By: Chris Tribbey, Erik Gruenwedel
NCR Corp. is in discussions with select national retailers and international markets to install kiosks designed to sell — not rent — new release movies.
The strategy is aimed at packaged media retailers looking to downsize floor space and personnel resources allocated to stocking and managing disc inventories. It would be separate from nearly 9,000 Blockbuster Express rental kiosks Duluth, Ga.-based NCR operates through a license agreement with the bankrupt rental company.
The concept is not entirely new as Express kiosks have altered rental price points (including $3.99 per night Blu-ray Discs on street date), in addition to offering sellthrough of new releases in select geographic locations in separate tests with Universal Studios Home Entertainment and 20th Century Fox Home Entertainment.
Studio sellthrough titles offered through third-party retail kiosks include The Expendables from Lionsgate and Sony Pictures Home Entertainment’s Grown Ups, Salt and The Social Network. Future titles include How to Train Your Dragon and Megamind from DreamWorks Animation.
DVDs sell for $12.99 and $16.99 for Blu-ray.
“We've certainly learned how to perfect DVD rental kiosks and improved the user experience through our Blockbuster Express program,” said NCR spokesperson Jeff Dudash. “We believe there is applicability to them to solve a need in retail space by automating a certain portion of their store. And we think the most applicable part of that is in the entertainment section through DVDs, music CDs and video games.”
Dudash said retailers could also offer rentals through the kiosks if desired. He said NCR is considering foreign markets to implement kiosk vending for disc sellthrough. The company does business with more than 130 countries.
In a February financial results call with analysts, John Bruno, EVP of the industrial solutions group with NCR, said the company was on track to deploy an additional 3,000 Express kiosks in 2011.