NCR to install 200 Blockbuster Express DVD kiosks in Duane Reade

Duluth, Ga. NCR Corp. said Tuesday that it is installing Blockbuster Express DVD rental kiosks at more than 200 Duane Reade drug stores in New York City, as the movie-rental company gears up to compete with alternative forms of movie delivery to offset dwindling business at its stores.

NCR said most of the kiosks will be in place before the end of the year. Each kiosk will hold more than 900 DVDs.

NCR licensed the Blockbuster Express name from Blockbuster for the kiosks and the two will share in the revenue generated. NCR will use the kiosks of TNR Holdings Corp., which it acquired in April. TNR operates the nation's second largest chain of kiosks after Coinstar's Redbox, a Blockbuster rival.

The New York City expansion is part of Blockbuster's plan to install 2,500 NCR-operated kiosks nationally this year. The biggest clusters of these kiosks are in Florida; Georgia; Massachusetts; New York and Arizona, NCR said.

Blockbuster faces stiff competition from alternative outlets for movie rentals. Initially, it was Netflix, with its movies-by-mail service and no late fees, as well as movie streaming through computers, gaming consoles and other devices. Then it was Redbox, where people can rent a movie for $1 per day.

The Blockbuster Express kiosks will match Redbox's pricing.