NCR Looking Into Sale of Blockbuster Express Kiosks
DULUTH, Ga. -- NCR Corp. is considering forming partnerships for its Blockbuster Express movie rental kiosks, as well as a potential sale, according to a Home Media Magazine report.
After acquiring DVD Play and The New Release kiosks, NCR has expanded Blockbuster Express to approximately 9,000 kiosks nationwide, according to the report, with expectations of up to $200 million in revenue and $20 million in earnings. However, NCR CEO Bill Nuti stated that Blockbuster Express is not one of the company’s main focuses for the future.
"While entertainment remains an important self-service opportunity for us, we are actively exploring strategic options with a few active and interested parties," said Nuti. "We have a few interested parties that are working with us right now and talking about that business."
Merriman Capital Research Director Eric Wold wrote a research note that points out several reasons NCR might choose to move on from Blockbuster Express, including competition from Redbox and a legal battle over the Blockbuster brand with Dish Networks, which owns the bankrupt Blockbuster. Wold also pointed to Dish as the most likely buyer in the event of a sale, according to the report.
As CSNews Online reported on Tuesday, NCR is acquiring Radiant Systems, a point-of-sale solution provider to convenience stores and other specialty retail markets. The companies anticipate the transaction will close during the third quarter of this year.