Redbox Acquires Blockbuster Express DVD Rental Kiosks

By · Monday, February 13th, 2012

Redbox Acquires Blockbuster Express DVD Rental KiosksLike the film camera, the typewriter, and the telephone booth, the video rental store has become a modern-day relic. Last year, Blockbuster Video filed for Chapter 11 bankruptcy in a highly publicized event. The company’s remaining stores in the US were closed down and their assets were sold to Dish Network at auction. However, the company’s rental kiosks had forged ahead, keeping the Blockbuster brand name alive.

Now, the days of Blockbuster Express rental kiosks have also come to an end. A press release published this week announced that rental kiosk giant Redbox will purchase all of NCR’s Blockbuster Express machines, contracts, and inventory in a deal valued at $100 million dollars.

While rental kiosks were viewed as a novelty several years ago, they are now commonplace. The self-serve machines offer consumers the ability to rent replicated DVD movies and Blu-ray titles for as little as $1.00 per day. This is a stark contrast to the old Blockbuster model which offered three and five-day rental periods for regular titles, and shorter rental periods for new releases.

Redbox was already far ahead of Blockbuster Express’ market share before the acquisition. Now, it position as market leader is even stronger as there are virtually no other competitors in the rental kiosk industry. The deal adds NCR’s 10,000 machines to Redbox’s already-impressive arsenal of over 35,000 machines.

The popularity of these kiosk rental machines shows that in spite of the hubbub over streaming video, packaged media is still a big hit with consumers. Spending on packaged media such as DVD movies and Blu-ray discs still accounts for the majority of entertainment spending. These are formats that users are very familiar and friendly with, and they are a great choice for distributing your own duplicated DVD movies and content.

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