In today’s day and age, watching DVDs seem outdated. After all, you can watch whatever movie you want for free on the internet either through streaming or downloading it from a popular sharing website. However, this type of viewing is not favored by a significant number of viewers. There is just no guarantee that the file you download is safe or if the internet is fast enough to make viewing comfortable for you. In this case, an unlikely contender emerges: DVD kiosks.

Blockbuster Rolls Out DVD Kiosks

One of the biggest names in the DVD rental industry, Blockbuster, has rolled out 200 kiosks in New York City drugstores. There is no doubt that the company will continue to launch additional DVD kiosks in various parts of the country throughout the rest 2010. Already, Blockbuster has ceded a big lead to Redbox, who already has 20,000 kiosks around the country. No matter the case, the competition between the two is bound to be interesting.

NCR Corp, one of the companies behind Blockbuster, is renowned for its banking machines. This capability will allow it to have an edge over others in the market. In addition, its partnership with grocery chains such as Publix Super Markets Inc. enables it to reach more audiences.

What’s in a Name?

According to Alex Camara, the general manager of NCR Entertainment, “Having the Blockbuster brand means consumers immediately know what the kiosk is and what the kiosk does.” This is a big edge indeed. As if that’s not enough, NCR kiosks with the Blockbuster brand can hold as much as 950 DVDs as opposed to other kiosks that can contain 500. In other cases, the company is experimenting with a number of kiosks that will enable audiences to download the movie in 2-3 minutes using their SD card.

These developments are not without deterrents though. Blockbuster kiosks still need to match the price of Redbox which charges $1 a night. Movie studios are not happy with the current price range, saying that it devalues the product. Studios used to get a commission from the rental revenue Blockbuster stores generated. But now, there is litigation in court barring Redbox and potentially other companies like it from getting access to new movies.  The one thing that has gone unmentioned is if Blockbuster will leverage their online dvd rental services to work with the kiosks.  Either way, it looks as if Blockbuster is poised for growth in 2010