Redbox has acquired entertainment kiosk technology and services from NCR and cut a deal with Verizon designed to emulate Netflix’s former DVD-streaming bundle.
The moves amount to an interesting makeover for Redbox, which is owned by Coinstar. Separately, Coinstar reported blowout earnings.
On the NCR front, Redbox will buy NCR’s entertainment business including kiosks, retailer contracts and DVD inventory in a deal valued up to $100 million. NCR ran the Blockbuster Express business. Coinstar will also buy hardware, software and services from NCR in a deal valued at $25 million. For NCR, Coinstar will be a good showcase for the company’s technologies. NCR makes everything from kiosks to self-checkout terminals to voting machines to ATMs.
Separately, Verizon and Coinstar formed a joint venture that will offer streaming services from the telecom giant along with DVD rentals. Verizon will own 65 percent of the venture with Redbox keeping a 35 percent stake.
This streaming service will launch in the second half of 2012. The effort is supposed to cover multiple platforms and give Redbox and avenue to streaming.
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Blockbuster Express going away?
Posted 07 February 2012 - 04:54 AM
Proud DirecTV customer since July, 1994
My Q4 2014 Set-Up