AfterDawn: News

Blockbuster to challenge Redbox in kiosk market

Seeing the recent success of DVD kiosk provider Redbook, Blockbuster has announced plans to provide DVD rental kiosks at Family Dollar and Papa John's pizza locations as part of a trial run for the new service.

In recent months Blockbuster's new CEO, James Keyes, has them focusing more on their traditional (brick and mortar) rental business, rather than trying to combat Internet DVD rental service Netflix on their own turf. However, the rental kiosk business has seen massive growth this year, in part because of Blockbuster rival Redbox getting kiosks positioned at McDonald's restaraunts around the U.S.



Just yesterday Redbox announced that their kiosks now give them a presence in more locations than Blockbuster, whose business is still conducted primarily at dedicated rental stores. No doubt Blockbuster executitves are going to be make a point of becoming a major player in the early stages of the kiosk market to avoid the problems they faced when Netflix became a serious competitor.

According to Blockbuster CEO James Keyes, “The next, bigger trend is for vending, and we are well positioned to be able to play through an electronic kiosk.”

Source: Home Media Magazine

Written by: Rich Fiscus @ 28 Nov 2007 16:48

• Previous article

• HD VMD to finally be available in the US

• Next article

• MainConcept AG licenses transcoding applications to Panasonic

• 11 comments

• mrtoast2

  redbox is really easy to use and as long as the rentals stay at 1.00 I will rent from them. If BBV gets into this that would be great but I almost guarantee they will charge more... but if they put games in there too... that might just work.

  28.11.2007 22:03 #1

• jookycola

  Ah yes...Blockbuster doing what they do best. Copying someones much better business model and never quite doing it right. Of course they will charge more, and you better believe they want this business. It's finally their chance to be able to hit people with rediculous late fees again. I'm sure that very idea has them wet in their panties.

  28.11.2007 23:16 #2

• ali2007

  copycaters copying everybody's idea oh yeah they might have late fees somewhere and they will charge you like h*ll.
  
  
  what blockbuster need to do is create their own ideas and invest on it not just copy netflix and redbox ideas

  29.11.2007 07:13 #3

• SProdigy

  Originally posted by jookycola: Ah yes...Blockbuster doing what they do best. Copying someones much better business model and never quite doing it right. Of course they will charge more, and you better believe they want this business. It's finally their chance to be able to hit people with rediculous late fees again. I'm sure that very idea has them wet in their panties.Don't forget who owns BlockBuster... and as I said before, B&M rental chains made up to 30% of their profits on late fees, so by eliminating them, they basically cut their own throat.
  
  Redbox is good, but it could be better. The interface is somewhat of a pain, I wish you could just type in what to search. It takes awhile for the transaction, and returning multiple movies, especially with an outdoor kiosk, takes a lifetime in the cold weather we get around here.

  29.11.2007 08:23 #4

• spydah

  All redbox has to do is up the amount of newer movies and older movies in their machines and keep the prices the same and they will be fine. Blockbuster doesnt have a clue on how to take their service to the next level or change with technology. Thats why they are copying. Their model is do what they do and hope for the best.

  29.11.2007 09:30 #5

• maryjayne

  Family Dollar and Papa John's vs. McDonald's and (Redner's and Giant in my area).
  
  Family Dollar is not typically on my list of frequent stops; however, when I want a quick meal then I typically think of convenience which typically results in McDonald's.
  How many people actually go to pick up their pizza vs having it delivered? Very few.
  
  If Blockbuster really wants to give Redbox some competition, then they need to really reconsider their locations for their kiosks. Redbox now has their kiosks at places that make sense (fast food and grocery stores). Everyone needs to eat and when I go pick up my Redbox rental I am typically thinking if I need anything else from the store while I am there. I wont be doing that with Family Dollar and defidently not Papa John's.
  
  Leave it to Blockbuster to take a good idea from someone else and make it flop.

  29.11.2007 11:34 #6

• goodswipe

  Originally posted by maryjayne: Family Dollar and Papa John's vs. McDonald's and (Redner's and Giant in my area).
  
  Family Dollar is not typically on my list of frequent stops; however, when I want a quick meal then I typically think of convenience which typically results in McDonald's.
  How many people actually go to pick up their pizza vs having it delivered? Very few.
  
  If Blockbuster really wants to give Redbox some competition, then they need to really reconsider their locations for their kiosks. Redbox now has their kiosks at places that make sense (fast food and grocery stores). Everyone needs to eat and when I go pick up my Redbox rental I am typically thinking if I need anything else from the store while I am there. I wont be doing that with Family Dollar and defidently not Papa John's.
  
  Leave it to Blockbuster to take a good idea from someone else and make it flop.lmao...so true.

  29.11.2007 17:10 #7

• Mr-Movies

  It is such a limited venue to rent movies from vending machines and when you have a problem now it is time to start pulling your hair out. Maybe they could put the machines in the restrooms right next to the condom machines. :D
  
  I liked it when JokeBuster restructured their Online rental pricing now for $18 you are limited to 3 movies at a time with a limit of 6 a month but on the up side you can exchange up to 5 of them in the retail centers. Oh and buy the way if you want a game well you will need to purchase GamePass separate from your base membership and GamePass starts at $21 a month and a limit of 1 at a time and only in your preferred retail center. If you want unlimited movies 3 at a time that will be $25 a month and still no games included. Netflix is $18 a month unlimited and they have way more movies to pick from what is BadBuster thinking.

  29.11.2007 23:41 #8

• Mez

  Quote:Leave it to Blockbuster to take a good idea from someone else and make it flop.They have not invented any ideas. Redbox is a great idea. They are convienent and are priced right. They are not for the movie addict like myself. I need a wide selection. I am either watching new releases or vintage stuff. BB Access is the best for me. I hate giving money to the bumbs but they are the best for me. I figure there are plenty of customers for Redbox. Pricing a rental at 25% of the retail purchase price is a rip off. If you concider they are getting the movies for less than half that they have a real nerve to be renting movies for that huge price. They also sell the used ones for about what they buy them for after making a grand in rentals on the disk. When they started out, videos were about $50 and they were renting them at $2 for I can't remember how long you could keep them. For some reason they believe they can rip off the public like that forever. BB then is amazed when they get competition.
  
  I will probably go to Redbox when I get too aggravated with BB. I used to go back and forth between NF abd BB but I am convinced NF are the worst of the 3 rental options. The worst by being total scum bags. There service it better than BB but is more expensive and you have diffuculty getting new releases. They are the worst because I am sure they are trying to cheat the customer out of something at every turn.

  30.11.2007 07:06 #9

• Mr-Movies

  Quote:I will probably go to Redbox when I get too aggravated with BB. I used to go back and forth between NF abd BB but I am convinced NF are the worst of the 3 rental options. The worst by being total scum bags. There service it better than BB but is more expensive and you have diffuculty getting new releases. They are the worst because I am sure they are trying to cheat the customer out of something at every turn.Smoke another one and then get your facts right. Hands down NF is better then BadBuster the ONLY thing BB has better is retail stores.
  
  They are:
  BB is More exspensive!
  BB has Less selections!
  NF I have no problems getting new releases!
  NF has very quick turn around!
  NF when I do have a problem, which is rare, they take care of me!
  NF pretty much if it is released NF has it FAR from true with SuckBuster.
  
  It is becuase of people like YOU that we have to put up with places like BlockBuster and Hollywood Video taking over the retail market, sad but true!

  1.12.2007 22:00 #10

• borhan9

  I guess this is an answer to the redbox move however only time will tell if this works as they would want it too.

  20.12.2007 18:59 #11