Blockbuster plans to cash in on the DVD rental kiosk trend in 2011 by installing 3,000 more of its Express kiosks, according to published reports. There are already 8,000 kiosks deployed in locations such as grocery stores and quick service restaurants. The kiosks proved successful in 2010, even as the retailer closed stores and filed for Chapter 11 bankruptcy protection in September.
NCR, which owns and operates the Blockbuster Express kiosks, also plans to reposition kiosks that underperformed in 2010. Originally NCR planned to deploy a total of 10,000 kiosks in 2010. Approximately 1,600 of the 8,000 kiosks that were deployed did not meet expectations, making it necessary for NCR to scale back kiosk installments.
Despite this, average revenue per kiosk improved 16% each quarter in 2010, according to NCR, which estimates that the additional 3,000 units will generate $200 million in revenue in 2011.
“We feel good about what we learned in 2010,” says John Bruno, executive vice president of the industrial solutions group with NCR. “We are either addressing site issues or redeploying machines that did not show up to have the rental foot traffic we had expected.”
Movie kiosks such as Blockbuster Express and its competitor Redbox allow customers to rent new DVDs for a relatively low price. These kiosks were increasingly more profitable than traditional retail stores in 2010.