Published:
01-Jul-09
Kiosk operator E-Play has extended its trial of self-service vending machines offering trading of pre-owned video games as well as rental of video games and movies to retail giant Best Buy's Dallas and Austin stores. In contrast to machines at Wal-Mart stores, Best Buy consumers will not be able to exchange discs for cash, instead receiving Best Buy vouchers. Best Buy first trialled pre-owned games trading in kiosks through its Canadian subsidiary Future Shop in 2007: machines are now installed at all 139 Future Shop stores.
Meanwhile, US kiosk market leader Redbox has ousted competitor NCR's TNR/MovieCube-branded kiosks from 116 Albertson's supermarkets, giving it a presence in all 248 Albertson's outlets. Redbox, which also claims to have replaced NCR in Texan chain H-E-B and another unidentified retailer, plans further expansion into grocery stores currently housing TNR/MovieCube kiosks. Redbox is also to commence a new stage of deployment of kiosk at Circle K locations.
Finally, video rental giant Blockbuster with partner NCR has deployed a first batch of about 50 self service rental DVD and Blu-ray Disc (BD) vending machines, a majority of them in Circle K grocery stores in Oklahoma. Prices at the Blockbuster Express kiosks are $1 per night rental for DVDs and $1.99 for BDs, lower than its instore prices which typically is between $2.99 - $3.99 for new release DVDs.
Our take...
Latest moves confirm the trend-bucking growth being experienced by the US kiosk sector. Redbox parent Coinstar reported annual growth of over 150 per cent in first-quarter sales from its video kiosk brands Redbox and DVDXpress, to $154.7m. Latest move further increases Redbox's already massive lead over NCR —the last known reported number of TNR's installed base was 2,000; as of March 2009 Redbox has a base of 15,400. However, NCR's deal with Blockbuster includes the provision for up to 10,000 new kiosks, 3,000 set for 2009.
USA,
