First Stage of Deployment to Begin in Third Quarter of 2008, With
Opportunity for Larger Scale National Rollout
Vending Kiosks Allow for Future Applications like Digital Downloads
DALLAS and DAYTON, Ohio, Aug. 4 /PRNewswire-FirstCall/ -- Blockbuster
Inc. (NYSE: BBI, BBI.B), a leading global provider of media entertainment,
and NCR Corporation (NYSE: NCR), a global leader in self-service and
assisted-service technology, have entered into an agreement to deploy
Blockbuster-branded, state-of-the-art DVD vending kiosks in a pilot program
that could be the first step of a national rollout of thousands of units.
The initial deployment of 50 Blockbuster-branded kiosks should begin in
the third quarter of 2008 with all units expected to be installed by
year-end. The pilot vending kiosks will initially offer DVD rentals, but
the machines will allow for future applications, including digital
downloads, and other services, such as sales of DVDs and video games. The
companies have not announced the markets or site locations for the first
units.
Earlier this year, Blockbuster and NCR announced an agreement to test
digital movie downloading kiosks in select Blockbuster locations. The first
of those units is expected to be installed in two Dallas stores this
summer.
"With NCR's advanced technology, these machines will dispense a wide
array of DVDs and could offer digital downloading in the future, all under
the Blockbuster brand," said Jim Keyes, Blockbuster chairman and CEO. "This
initial rollout provides consumers increasingly convenient access to their
favorite movies and is one more step in the fulfillment of our mission to
transform Blockbuster into a multi-channel provider of media
entertainment."
"This alliance with Blockbuster is an exciting step for NCR as we
pursue our mission of becoming the leader in the market for entertainment
self- service solutions," said Bill Nuti, NCR chairman and CEO. "Looking
beyond this initial deployment, our mutual goal is to have 10,000 kiosks
installed within 18 months. We are energized and thrilled to be such an
integral part of Blockbuster's strategy for providing consumers with
greater choice and convenience."
Analysts are projecting DVD vending kiosks could grow by more than 60
percent over the next three years, increasing from 9,300 units at the end
of 2007 to more than 22,400 by the end of 2010. Additionally, consumer
spending on movies from vending machines during that same period is
expected to grow from $197 million to more than $760 million.
About Blockbuster
Blockbuster Inc. (NYSE: BBI, BBI.B) is a leading global provider of
in-home movie and game entertainment, with more than 7,700 stores
throughout the Americas, Europe, Asia and Australia. The company may be
accessed worldwide at http://www.blockbuster.com.
About NCR Corporation
NCR Corporation (NYSE: NCR) is a global technology company leading how
the world connects, interacts and transacts with business. NCR's assisted-
and self-service solutions and comprehensive support services address the
needs of retail, financial, travel, healthcare, hospitality, gaming and
public sector organizations in more than 100 countries. NCR
(http://www.ncr.com) is headquartered in Dayton, Ohio.
Forward-Looking Statements
This release and our related earnings conference call include forward-
looking statements related to our operations and business outlook and
financial and operational strategies and goals. Specific forward-looking
statements can be identified by the fact that they do not relate strictly
to historical or current facts. These forward-looking statements are based
on management's current intent, belief, expectations, estimates and
projections regarding our company and our industry. These statements are
not guarantees of future performance and involve risks, uncertainties,
assumptions and other factors that are difficult to predict. Therefore,
actual results may vary materially from what is expressed in or indicated
by the forward-looking statements. Factors that may cause actual results to
vary materially include, among others: (1) consumer appeal of our existing
and planned product and service offerings, and the related impact of
competitor pricing and product and service offerings; (2) overall industry
performance and the accuracy of our estimates and judgments regarding
trends impacting the home video industry; (3) our ability to obtain
favorable terms from suppliers, including on such matters as copy depth and
uses of product; (4) the variability in consumer appeal of the movie titles
and games software released for rental and sale; (5) our ability to respond
to changing consumer preferences, including with respect to new
technologies and alternative methods of content delivery, and to
effectively adjust our offerings if and as necessary; and (6) other
factors, as described in our filings with the Securities and Exchange
Commission, including the factors discussed under the heading "Risk
Factors" in our annual report on Form 10-K for the year ended January 6,
2008 and additional disclosures in our quarterly report on Form 10-Q for
the quarter ended April 6, 2008 and in our quarterly report on Form 10-Q to
be filed for the quarter ended July 6, 2008. This cautionary statement is
provided pursuant to Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. The forward-looking statements
in this release and in our related earnings conference call are made only
as of the date hereof and we undertake no obligation to update publicly any
forward-looking statement for any reason, even if new information becomes
available or other events occur in the future.
SOURCE Blockbuster Inc.; NCR Corporation
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Related links:
http://www.blockbuster.com
http://www.ncr.com
CONTACT:
Press, Randy Hargrove, Senior Director,
Corporate Communications of Blockbuster Inc., +1-214-854-3190,
randy.hargrove@blockbuster.com; or Robert (Kelly) Kramer, Media
Relations of NCR Corporation, +1-770-623-7215,
kelly.kramer@ncr.com; Investor Relations, Angelika Torres,
Director, Investor Relations of Blockbuster Inc., +1-214-854-4279
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