Blockbuster Inc. has begun testing vending machines that rent new movies for $1 a night in Papa John’s International Inc. and Family Dollar Stores Inc. locations this week in Lexington, Ky.
That’s $3 less than a 5-day rental at Blockbuster stores.
Blockbuster Express boxes, each offering 250 movies, are in 3 Papa John’s locations and 7 Family Dollar sites, Blockbuster spokeswoman Karen Raskopf said.
The vending machines may help Dallas-based Blockbuster fend off DVDPlay Inc. and Redbox Automated Retail LLC, jointly owned by McDonald’s Corp. and Coinstar Inc. The 2 companies have been offering $1 DVD movie rentals at supermarkets, drugstores and McDonald’s.
Blockbuster has ‘an opportunity’ with the self-serve stations, said Arvind Bhatia, an analyst at Sterne Agee & Leach Inc. in Dallas, who recommends investors buy the shares. ‘It’s a question of whether can they execute. Almost overnight, without having to go any place, they can very, very quickly put these kiosks in their stores to start with.’
Blockbuster To Test $1 DVD Vending Machines
November 30, 2007 by Cris | 43 Comments