Blockbuster Video is intent on competing on all fronts when it comes to DVD rentals. When it perceived Netflix and its online model to be a threat, Blockbuster launched its own online rental service. Redbox kiosks are the next target for Blockbuster with a recent announcement that Blockbuster and NCR will be launching DVD vending kiosks.

The kiosks will be launched in small numbers in a pilot program before possibly being rolled out nationwide. Blockbuster says that 50 kiosks will be launched in Q3 2008. At first Blockbuster says that the kiosks will be used for rentals, but could be upgraded in the future for game sales, digital downloads and movie sales. The locations and markets for the first 50 units has not been announced at this time.

"With NCR's advanced technology, these machines will dispense a wide array of DVDs and could offer digital downloading in the future, all under the Blockbuster brand," said Jim Keyes, Blockbuster chairman and CEO. "This initial rollout provides consumers increasingly convenient access to their favorite movies and is one more step in the fulfillment of our mission to transform Blockbuster into a multi-channel provider of media entertainment."

Via Blockbuster