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Redbox Gobbles Up Blockbuster Express Kiosks

by Sean P. Aune | February 7, 2012

Redbox mom & daughter

Not satisfied with only announcing a streaming service yesterday, Redbox has also said it’s gobbling up its kiosk competition, Blockbuster Express.

When DISH Network bought up Blockbuster, one thing it did not include was the 10,000 Blockbuster Express rental kiosks.  Those were the result of a licensing deal with NCR, a company that makes all sorts of various stand-alone kiosk machines such as self-ticketing stations in airports.    Like the company they were named for, the kiosks under performed, and NCR reported a $13 million dollar loss in the third quarter off of $42 million in sales.

Redbox to the rescue!

The leading DVD kiosk brand has said it will pay NCR $100 million for the 10,000 kiosks, specific retailer contacts and the remaining DVD inventory.  The deal is said to be completed by the third quarter of this year and will also include a strategic arrangement between the two companies that will see Coinstar, the parent company of Redbox, purchase products and services from NCR.

This new deal will essentially give Redbox a monopoly on the DVD rental kiosk business, and should the company keep all of the Blockbuster Express locations going – which is doubtful due to inevitable overlap – it would put the company at close to 40,000 locations around the nation.

As many reports have said DVD and Blu-ray rentals are tapering off, it’s intrigiuing to see Redbox looking to increase it’s hold on the market that much more.  Perhaps they know something other companies don’t?

[via CNET]


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Sean P. Aune

Sean P. Aune has been a professional technology blogger since July 2007, but his love of tech dates back to at least 1976 when his parents bought...Sean P. Aune has been a professional technology blogger since July 2007, but his love of tech dates back to at least 1976 when his parents bought...