ATM-maker NCR sees DVD kiosks as next big business
* Sees entertainment vertical becoming meaningful by 2011
* Sees spending half of 2010 capex on DVD rental kiosks
By Deepti Govind
BANGALORE, June 17 (Reuters) - NCR Corp (NCR.N: Quote, Profile, Research), which is known for its automated teller machines (ATMs), is aiming to make a business selling self-service DVD kiosks as recession saps demand for its bread-and-butter products.
The company recently joined hands with DVD rental company Blockbuster Inc (BBI.N: Quote, Profile, Research) and expects to provide about 10,000 DVD rental kiosk units by the end of next year.
"Over the long term, in about 10 years, entertainment has the potential to become as big as finance or retail verticals," said Chief Executive Bill Nuti.
DVD rental kiosks are coming up fast in American neighborhoods as customers find them more convenient and movie rental companies look to cut fixed costs of running retail stores.
No.1 U.S. DVD rental company NetFlix Inc (NFLX.O: Quote, Profile, Research) cited the growing popularity of kiosks as a reason for its weak outlook when it reported its latest quarterly results in April.
NCR, which is also foraying into other verticals like healthcare and public sector, expects its entertainment vertical to become a $1 billion business five years from now. Continued...
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