Printed from http://www.electronista.com

Redbox grabs NCR leisure assets, may end Blockbuster kiosks

updated 07:00 pm EST, Mon February 6, 2012

Redbox takes on NCR entertainment division

Redbox finished Monday by acquiring NCR's entertainment division. The $100 million move would see it buy NCR's 35,000 disc kiosks, usually attached to Blockbuster Express, as well as retailer deals and discs themselves. As part of the swap, Redbox's parent company Coinstar will get software and services that will ultimately make a $25 million profit for NCR.

The deal would also help NCR forge a "long-term strategic relationship" with Redbox, according to NCR's CTO, John Bruno. As long as it was approved, the partial buyout would wrap in the summer.

It's not clear what will happen to Blockbuster Express, a service designed partly as a response to Redbox. Blockbuster's current owner Dish might be reluctant to operate the Blockbuster brand under a competitor. As such, it could mark an exit from kiosks for Blockbuster.

For Redbox, the deal would give it a major advantage in dictating movie rentals in the future. The alternative model pioneer has been in a battle with studios to get new rentals at reasonable times. Having many more kiosks could force studios to negotiate more reasonable terms by raising the risk that they'd lose out on a much larger slice of revenue if they back out of any existing deals.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Cat B100

Cat is primarily known for its heavy-duty machinery used in the construction industry and farming, among other areas. What may not be ...

Linksys EA6900 AC Router

As AC networking begins to makes its way into more and more devices you may find yourself considering an upgrade for your home network ...

D-Link DIR-510L 802.11AC travel router

Having Internet access in hotels and other similar locations used to be a miasma of connectivity issues. If Wi-Fi was available, it wa ...

Sponsor

toggle

Most Commented

 
toggle

Popular News