Redbox already controls a large portion of the DVD rental kiosk market, but there grip on the sector is about to tighten even further. Blockbuster announced today that its parent company NCR Corporation has sold its entertainment division to Redbox, affectively signing over all Blockbuster Express DVD rental kiosks along with it.
The deal valued at up to $100 million will see all Blockbuster Express rental kiosks, DVD inventory, and a number of retail contracts transfered to Redbox. The total number of kiosks currently under Blockbuster Express’s label numbers around 9,000. The transfer of ownership is set to be completed by Q3 2012, until which time Blockbuster Express service will continue as normal.
This news follows recent rumors that Redbox is partnering with Verizon to introduce a Netflix competitor in the streaming market.
Here’s the official word from Blockbuster:
Dear Valued Customer,
NCR, which operates your Blockbuster Express kiosks, has entered into an agreement to sell its kiosks and other assets to Redbox. Until the transaction is completed (we anticipate in the third quarter of 2012), you will continue to enjoy the convenience, choice, and value you’re used to from BLOCKBUSTER Express. Until the sale is completed, we will continue to run the business as we have been, focused on bringing you the latest New Release movies with most titles only $2 for the first night. You’ll also notice that we’ve increased our In-Stock Guarantee value so you will now enjoy a movie night on us with a value of up to $3 if we don’t have the New Release movie you want in stock.
As a reminder, we still have 100s of great movies available at $1 and additional nights of all movies are still only $1, all part of preserving an exceptional value for an affordable night of entertainment.
We’ll continue to provide you with information on any changes that result from this recent announcement but for now we just wanted to say thanks for being our customer.