Article

28 days earlier: NCR's DVD kiosks work around new release delays

NCR is testing premium pricing for premium new releases in its Blockbuster-brand kiosks.

December 7, 2010 by Christopher Hall — w, t

Now that its biggest rivals have capitulated to the 28-day waiting period most movie studios wanted, NCR Corp. is exploiting provisions in its agreements with several studios to carry DVDs for rent in the company's branded BLOCKBUSTER Express DVD-rental kiosks on the day of their release.

And, at least in one case, the company is just going ahead with the old third-party buy-around tactic that redbox used so effectively not all that long ago.

But NCR has the special provisions in its agreements with several studios that allow them to carry some titles on day-and-date, and of course NCR is going to use them to get a leg up on the competition — read: redbox and Netflix — that doesn't.

"At the end of the day we want to provide the most convenient entertainment experience possible," NCR Entertainment spokesman Jeff Dudash said in a recent telephone interview. "There will be no other self-service channel, such as kiosk or by-mail, able to offer the movies that our customers want as soon as they are available. We're excited about being able to offer that level of choice."

Earlier this week, NCR began a test program of charging $2.99 for a one-night DVD rental of either Warner Bros.' "Inception" or 20th Century Fox's "Knight and Day" in select markets. It was about a week after the release of the Tom Cruise and Cameron Diaz-starring "Knight and Day" and on the drop date for "Inception."

That's more than the $1 more per night more than other DVDs in the Blockbuster-branded kiosks — and in competitor redbox's kiosks — but the consumer would get access to films a few weeks earlier. NCR is testing the new pricing in Atlanta, Miami, Phoenix and San Francisco.

The premium title on DVD will be available at the $2.99 price point for the first 28 days, and then revert to the $1 per night pricing, Dudash says. The DVDs also are only $2.99 for the first night, then $1 per night for subsequent nights, he says. Premium Blu-ray titles will go for $3.99 and $2.

Dudash says NCR has agreements with several of the studios that have implemented the 28-day waiting periods, notably Fox and Universal. Many of the titles in the test will likely be Fox titles, he says. And some news reports suggest that the Universal titles will be tested in early 2011.

"That's part of our agreement with them to be able to test the consumer appetite for day-and-date DVDs, so we're working alongside of them with this particular test," Dudash said.

"Inception," though, is from a studio with which NCR does not have an agreement, so for the moment the company is resorting to "sourcing it through alternative means," Dudash says.

Dudash says he's not at liberty to discuss other specifics — like whether or not the studios would be on board with expanding the number of premium titles they make available early if the test goes well — but that the company is optimistic its DVD kiosk customers will be excited about the trial.

"We think that choice is a big part of convenience. In these test markets you will have the ability to rent a title today that you typically would have had to wait 28 days to rent," he said. "If you want to wait and pay the $1 a night, that's certainly an option too, but it's really putting the choice in the customer's hand and allowing them to make the decision for themselves."

About Christopher Hall

---

None

Connect with Christopher: