DVDPlay kiosks to join Blockbuster Express brand
PHYSICAL: Redbox exceeds installation projections to 22,210 machines
By Samantha Clark -- Video Business, 12/10/2009
DEC. 10 | PHYSICAL: Blockbuster Express kiosk operator NCR Entertainment has acquired smaller competitor DVDPlay.
DVDPlay kiosks will be re-branded to Blockbuster Express machines.
Thanks to the deal, terms of which were not disclosed, NCR has increased the number of DVD rental machines it plans to have installed by the end of the year to 3,800.
DVDPlay operates about 1,300 kiosks in the U.S. and Canada, which will be converted to Blockbuster Express machines.
“Our acquisition of DVDPlay accelerates NCR’s growth in the DVD-rental business as we expand our operations, technology leadership and consumer experience in key markets with premium retail partners,” said Alex Camara, VP and general manager of NCR. “Over the past six months, we’ve seen tremendous enthusiasm from consumers and retail partners for our DVD-rental kiosks. We’ve been able to deploy quickly and maintain high levels of availability. This further investment will help us bring our kiosks to even more consumers in even more locations around the United States, especially in major markets in California and other parts of the Western U.S.”
Meanwhile, Redbox parent Coinstar said today it has surpassed its end-of-year projections and now has more than 22,210 DVD rental kiosks installed. The company said it has averaged 900 Redbox installations per month for the past six months, representing more than one kiosk every hour, 24 hours a day, seven days a week.
“We are delighted with the high retailer and consumer demand for our low-cost, convenient DVD rental service,” said Mitch Lowe, president of Redbox. “We’re proud of the relationships we’ve established with the top retailers in the U.S., and we continue to identify viable, high-traffic locations where consumers shop to install Redbox kiosks.”
Despite kiosks' popularity with consumers, their $1 a night rentals have been a source of contention for some studios, and Redbox is embroiled in lawsuits with Warner Home Video, 20th Century Fox Home Entertainment and Universal Studios Home Entertainment, all of which have imposed a delay of at least a month for their new releases in kiosks.
Other studios, including Sony Pictures Home Entertainment, Paramount Home Entertainment and Lionsgate have signed distribution deals with Redbox.
This week, however, a study released by the Los Angeles County Economic Development Corporation said the low price of DVD rental kiosks could cost the entertainment industry $1 billion in lost revenue, leading to studios curbing movie production to make up for missing DVD sales.
