Blockbuster DVD rental kiosk partner NCR announced the acquisition of TNR Holdings, the second largest DVD rental kiosk company (2,200 kiosks) behind Redbox (12,000). Eric Savitz from Barron's reports that Blockbuster intends to have more than 10,000 kiosks in place by the end of 2010.
There are already more DVD rental kiosks than video stores, and Blockbuster will have more kiosks than stores (7,400) by the end of next year. No wonder Netflix CEO Reed Hastings is worried about DVD kiosks being installed at every supermarket and 7-11.
The only way I can see Blockbuster making a huge dent into Redbox' domination, is if they carry Blu-ray titles. Redbox has been more than hesitant to do so (is it the color thing? See below). I would gladly pay $1.99 a day for a Blu-ray title, rather than $1 for a normal DVD.
Redbox' colors may have been copied from McDonald's, but doggone it looks a lot like Netflix' red. Blockbuster kiosks would, of course, be Blockbuster blue, so Blu-ray seems like a natural addition.
Also, any kiosk vendor that doesn't do the free codes like Redbox is greatly missing out. I routinely use the codes that Redbox gives out (and endorses to do so) from sites such as insideredbox.com or redboxcodes.com
Today is a free rental, but tomorrow is a "late charge", a fee. Oh, and returning Monday's "FREE" rental on Tuesday, allows me to pick up the New Releases, at regular price. Wow! They're marketing geniuses!
Walt D in LV
Posted by: Walt D in LV | May 25, 2009 at 02:51 PM