News

NCR to sell DVD rental machines to retailers

March 24, 2011

NCR Corp. has plans to sell its own DVD kiosks to retailers, who will then brand them with their own logos and sell DVDs, video games or music CDs that are now sold on shelves, said Justin Hotard, general manager of NCR Entertainment, in a story on Bloomberg.

However, NCR will continue to operate its existing DVD rental machines through its Blockbuster Express brand. NCR leases the Blockbuster name from Blockbuster Inc. (BLOAQ), the operator of movie-rental stores that has filed for bankruptcy. Redbox has about 30,000 movie- rental kiosks.

The move gives Duluth, Ga.,-based NCR a new way to expand its DVD-kiosk business, which trails market leader redbox that has about 30,000 movie-rental kiosks. The business model of selling hardware and supporting software is similar to the way NCR provides automated checkout systems and ATM machines to stores and banks.

"This is a global opportunity," said Hotard in the story. He declined to identify companies that have been approached. "There are other countries where we are seriously investigating this."

NCR operates about 8,000 kiosks and plans to expand the number to 11,000 this year. NCR has been experimenting with DVD sales from its Blockbuster-branded kiosks to demonstrate to retailers that customers will buy movies from a vending machine. It offers four titles: Sony Corp.'s "The Social Network," "Salt" and "Grown Ups," and Lions Gate Entertainment Corp.'s "The Expendables." DVDs sell for $12.99 and Blu-ray versions for $16.99, Hotard said.

The company will soon add DreamWorks Animation SKG Inc.'s "How to Train Your Dragon" and "Megamind."