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A more comprehensive set of comments from analysts would include things like the following. It is very misleading to only talk about the competition between Blockbuster and Netflix. Many forces affect the viability/prosperity of the physical DVD rentailers.

Investor’s Business Daily
General News
Self-Serve Movie Rental Kiosks A Surprise Hit With Consumers
Posted 5/30/2007
Automated kiosks for renting DVD movies are popping up in grocery stores, drug stores and fast-food restaurants nationwide.
The growth of these self-service machines has taken industry analysts by surprise. And their popularity could further weaken traditional video rental chains like Blockbuster.
Companies such as Redbox Automated Retail, TNR Entertainment and DVDPlay are racing to sign deals with supermarkets and other retailers with lots of foot traffic.
The number of DVD rental kiosks in the U.S. at the end of 2006 more than tripled from a year earlier to 3,700, said Adams Media Research. The number could reach 9,000 by the end of this year...

© Investor's Business Daily, Inc. 2000-2007.


Rick, you could have suggested that as a story just by itself. The Piper Jaffrey analyst didn't mention Video On Demand either. He should be shot for making too brief a statement (according to you).

Movie Gallery may be adding 200 kiosks this year, too. I think it would be great if Movie Gallery fended Blockbuster (and its "free-Total-Access-to-kill-Hollywood-Video plan" off with kiosks. Hollywood Video is owned by Movie Gallery for those who don't know.

I thought this was pretty cool from the article you posted -- "Redbox also lets users go online and see the inventory of nearby machines and even reserve a movie." If I could use some free Redbox codes I might give it a swing, but I am not much into paying a dollar a day for a movie.


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