Blockbuster Deploying Vending Machines, May Expedite Store Closings
An article in Bloomberg says that Blockbuster is deployiong thousands of vending machines and may be more aggressive about closing down Blockbuster stores because of the vending machines. Blockbuster plans to have 2,500 of the DVD rental kiosks by the end of 2009 and 10,000 of them by the middle of 2010.
The company had more than 7,100 stores in the U.S. and overseas at the end of the second quarter and has said it plans to close about 300 this year.
"We could be more aggressive as vending ramps up," Keyes, 54, said yesterday in a telephone interview, referring to store closures. "We're deploying as many as 10,000 vending machines by the middle of next year." Blockbuster, based in Dallas, plans to have 500 kiosks by the end of this month and more than 2,500 by year-end.
With consumers switching to rentals, downloads and kiosks to purchase movies Blockbuster is bound to close some of its 7,000-plus locations. Video game rentals have been the one bright spot for Blockbuster but its stores have still recorded falling sales for four consecutive quarters. Blockbuster rival Redbox has even more of the vending machines and studios are worried they could cannibalize DVD and Blu-ray sales.
An 
