In an article at Video Business, Danny King reports:

NCR, which boosted its second-quarter sales 13% from a year earlier to $1.33 billion, looks to gain customers in a kiosk market that’s expected to pull sales from traditional movie-rental stores during the next few years. U.S. consumers will spend $800 million at kiosks by 2010, triple the amount spent last year, according to Convergence Consulting Group. Meanwhile, store rental revenue, estimated at $5.4 billion last year, will fall to $3.1 billion by 2010, according to Convergence.

Last month, NCR announced plans to build kiosks for both Blockbuster and The New Release/Moviecube. Blockbuster, the largest U.S. movie-rental chain, said NCR will make as many as 10,000 Blockbuster-branded installed machines by early 2010. The machines will let customers rent DVDs and eventually might let consumers buy discs and make digital downloads of certain titles, the companies said.

Read the entire article here: NCR to build DVD kiosk business

PRIME NEWSWIRE REPORTS

“Bricks…Clicks… Now Kiosks” — First Survey of DVD Rental Kiosk Industry by TNR Entertainment Highlights Significant Appeal of Consumer DVD Rental Alternatives

Nationwide Survey Suggests Potential Migration of 10% of $9 Billion Rental Market Shifting to Kiosks Over Next Three Years

In the first-ever comprehensive national survey of the rapidly growing DVD rental kiosk industry sector, 60% of current DVD renters expressed interest in renting from self-service DVD movie rental kiosks. Based on current consumer and retail market dynamics, this represents a potential market approaching $1.0 billion accruing to this sector over the next five years, applying selected data from the nationwide survey recently completed by TNR Entertainment Corp., the nation’s largest owner and operator of DVD rental kiosks in supermarkets and grocery stores, operating under The New Release(tm) brand…

To support growing consumer adoption of its low cost DVD movie rental proposition and dramatic expansion of its grocery store locations, TNR initiated this national market research project to better understand the category, consumers’ needs and behaviors and, most importantly, to better service its rapidly expanding customer base…

Among the findings in TNR’s pioneering survey:

 -- Grocery retail-based DVD rental kiosks have broad consumer appeal
    among men and women of all ages and life stage classifications,
    especially those 30 to 54 years of age and families with children.

 -- The rental kiosk value proposition to consumers is simple and
    compelling, driven by both lower movie rental costs and unmatched
    convenience -- the "single trip" benefit.

 -- Reflecting the growth potential for the kiosk market, awareness is
    still developing -- approximately 1/3 of all consumers surveyed
    indicated awareness of the self-serve DVD kiosk concept, but only
    5% of the respondents had rented through one. Awareness and rental
    usage in more developed markets is substantially higher.

 -- Kiosk adopters would most likely migrate from traditional "brick
    and mortar" rental sources to the grocery or rental kiosk.

 -- Over 1/3 of DVD renters are frequent grocery shoppers, many
    visiting their grocery store on a daily basis.

Read the entire article here:

http://www.primenewswire.com/newsroom/news.html?d=116181