NCR, in partnership with Blockbuster, is installing 200 movie rental kiosks in New York City drugstores — the Duane Reade chain — by the end of the year, the Wall Street Journal reports.
This is NCR’s opportunity to make an inroad against rival Redbox. Redbox movie rental kiosks are exploding around the country, but they haven’t managed to dent the New York City market.
For Blockbuster, this isn’t a big win. The company has seen its business erode as Redbox and Netflix become more popular with consumers. Because it’s only getting a licence fee, it’s not going to replace the business it loses.
For movie studios, this is just more pain. They think the $1-per-day that Redbox charges is too low. They’re asking DVD distributors to wait 30 days before selling DVDs to Redbox. Redbox is suing the studios.
As more kiosks proliferate, it looks like it will be a losing battle for the studios.