Blockbuster Express kiosks expanding to grocery chain
PHYSICAL: NCR-made machines expected to be in all Big Y stores by Sept. 3
By Samantha Clark -- Video Business, 8/27/2009
AUG. 27 | PHYSICAL: Blockbuster is expanding its customer reach with a deal that will put Blockbuster Express DVD rental kiosks in Big Y grocery stores throughout Massachusetts and Connecticut.
The Blockbuster Express kiosk rents DVDs for the same $1 a night price as Redbox machines.
NCR, which partners with Blockbuster on the kiosks, anticipates the Blockbuster Express machines will be in all 57 Big Y stores by Sept. 3, the company said in a statement today.
NCR expects to have a total of 500 Blockbuster Express machines in operation by the end of the month, including the rebranding of some of its 2,000 The New Release kiosks located in the Publix chain in the Southeast and other outlets, according to previous reports.
Blockbuster Express kiosks rental DVDs for $1 a night, the same price as kiosk market leader Redbox.
Redbox's low rental price has been a sore point for some studios, which have imposed title restrictions, including delayed street dates, on the kiosk segment. Redbox has sued Universal Studios Home Entertainment, 20th Century Fox Home Entertainment and Warner Home Video over their kiosk rental window of 30 days or more.
Other studios have signed deals with Redbox to give them guaranteed market share in the kiosks. On Aug. 25, Paramount signed a trial deal with Redbox. Sony Pictures Home Entertainment and Lionsgate already have agreements with the kiosk leader.
The restrictions Universal, Fox and Warner have placed on Redbox extend to the entire kiosk channel and so would also affect Blockbuster Express machines. Still, Blockbuster CEO Jim Keyes applauded Warner's decision to delay new release to kiosks because it helps the No. 1 retailer's bricks-and-mortar rental business.
Rental kiosks helped fuel rental growth in the first half of the year. Consumer spending on kiosks was up more than 150% in the first quarter, according to Rentrak. NPD Group forecasts that kiosks will control 30% of the overall DVD/Blu-ray rental market next year.
