News

Blockbuster buys DVD kiosk business

December 13, 2011

Franchise Entertainment Group, the operators of the Blockbuster and Video Ezy franchises, recenlty bought RedRoomDVD, a DVD rental business with a 100 kiosks and a network of stores.

The deal is part of Blockbuster's attempt to expand beyond the traditional brick-and-mortar model to compete with new entrants, according to Smart Company.

FEG also recently bought 1,000 kiosks through the acquisition of American firm National Cash Registers.

Paul Uniacke, owner of FEG, has gone on record saying that kiosks are a flawed model, but the company has been pursuing a hybrid strategy nevertheless.

"Kiosks are all about customer convenience, so for both (Blockbuster and Video Ezy) these new and additional touch points will add value to the overall brand offering in the market for many years to come," he said in the story.

Uniacke, who owns the business alongside Edward Nedelko, said the goal is to roll out 3,000 Video Ezy and Blockbuster kiosks.

Read more about DVD kiosks.