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Comments

rj

Knew this was coming. Just didnt know when.

My guess is they end up shuttering some boxes when they have underused boxes nearby.

Will be interesting to see if they are going to rebrand them all.

I dont think this helps conumers any because there is ONE dvd by box renter versus two. That will keep prices high and maybe even higher.

Chris

Glad RB can use the hardware. Good riddance BB kiosk.

RB seems to be wanting to take on NF directly. They are still small potatoes though on the cash front to make that happen but they are making changes to alter that.

Good for them. Maybe they won't pursue the same stupidity NF has made in the last year and will run their company smartly as NF once did.

Former Netflix Employee

DVDs are a dying medium. Good for Redbox, and I mean that...but they are playing a game that will end soon enough. Make it while you can, fellas! There is still a market out there, and you can pocket some nifty change from it before you move on to the next venture.

Robert Emmerich

$100 million for how many boxes? Wouldn't it have been more cost prudent for Redbox just to let the BB kiosks fade away? My supermarket still has a DVDXpress kiosk. I'm assuming there are others, so no "monopoly" yet.

Former Netflix Employee

DVD rental kiosks play right in to P.T. Barnum's assessment of the American public. They don't make money on the rentals...they make money on the late fees. Its a smart, albeit opportunist, way to make some cash. They're taking a big risk dumping out $100mil, but - having talked to so many idiots over the phone re: DVDs - they'll make it back in late fees within 18mos.

Marshall

I don't recall Barnum saying anything about late fees. Not that Redbox has them. Unlike BB (store, not kiosk) there aren't any tricks to Redbox.

I don't understand this deal but I suspect there are terms that we aren't privy to. NCR got out without loosing too much and Redbox must have had some pot sweetening. Most likely access to places that have BB kiosks and probably some hefty discounts on manufacturing.

NCR seems like they have given up direct retail and are falling back to their core which is manufacturing. A smart move. Make the machines and let someone else worry about logistics.

moviegeek

I think it's a smart move on Redbox and NCR, Redbox is well known while the BB kiosk wasn't. There are Redbox kiosks everywhere in my town but I've only seen five BB kiosks(mainly in grocery stores), Redbox rentals are climbing(34% of the market) and NCR can't compete. I'm sure Redbox/Coinstar will buy all the other rental competitors by next year.

Truck

I do maintenance on these machines for NCR. They're used by a surprising amount of people in my area, and they were directly competing with Redbox and Netflix to get exclusive rental rights for the first 30 days (until Redbox decided not to play that game a few days ago). Anyway, I hadn't heard anything about this, but I doubt the current kiosks can be upgraded to store Redbox style cases so they'll probably just remove them.

Walt D in LV

@rj, Redbox just had their first price increase since their inception, so I doubt prices are going to be rising any time soon.

@Former Netflix Employee, DVDs/Blu-rays aren't going anywhere anytime soon. I'm sure there's at least five years, probably more, as far as rentals go. And I mean of any disc-based media. (Just in case 4K should happen to come out in America by then)

@Robert Emmerich, Blockbuster has about 10,000 kiosks. At $100 million, that's $10,000 each. Of course, you're getting the inventory, the NAME/Brand, the location contracts, etc.

bigqueue

I admittedly have only been using the BB kiosks with free codes I got (from Safeway deals, and a few other things), but their lowest price is $1. Isn't RedBox's lowest price now $1.20?

My netflix acct is now on hold, and I already switched down to 2 disc only (then put it on hold).. I'm semi-seriously wondering if I'll go back to NF full time again.

Though I wonder what will happen if people have codes that should have been valid after the changeover.

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