Blockbuster Lays Out Its 2010 Kiosk and Business Model

Blockbuster is rapidly changing the way it touches its customers and is transforming the company into a multi-channel business by increasing its points of presence through Blockbuster Express vending kiosks and Blockbuster on-demand digital streaming.

Blockbuster is moving beyond the box and now offers by-mail service, vending and digital download capabilities. Through an alliance with NCR, the retailer is expanding its physical points of presence with 2,500 Blockbuster express branded kiosks expected by the end of 2009.

Blockbuster will also leverage NCR's first outdoor DVD rental kiosk which will create a 24-hour automated retail store. The new solution is easily upgradeable and is equipped to offer digital download capability for video files.

Additionally, the retailer opened a new channel of distribution for Blockbuster -- its mobility channel in August through an exclusive mobile integration deal with Motorola.

According to James Keyes, CEO, Chairman of the Board, Blockbuster, "We are working hard to take the multi-channel approach to the next level by providing the customer with flexibility, control, and ease-of-use. We’ve enhanced Blockbuster.com with the introduction of online account management and inventory lookup, enabling our customers to find in-store inventory at their nearby Blockbuster."

Keyes continues, "Through our planned integration of stores by mail, vending, kiosks, digital services, we intend to utilize a centralized customer database to realize supply chain efficiencies and ultimately to deliver a superior customer experience."