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Dish to NCR: Drop ‘Blockbuster’ Name From Kiosks
Dish to NCR: Drop ‘Blockbuster’ Name From Kiosks
13 May, 2011 By: Erik Gruenwedel Dish Network has asked NCR Corp. to stop using the Blockbuster trademark on its 9,000 Blockbuster Express rental kiosks, effective May 26. The Englewood, Colo.-based satellite TV operator issued the cease and desist request in a May 10 court filing alleging that the NCR license agreement was assumed in the bankruptcy and subsequent $320 million asset sale, according to a spokesperson. Dish has used the same rationale for rejecting other vending and distribution agreements, including select revenue-sharing deals with studios. "Blockbuster continues to evaluate the kiosk rental business and the variety of ways we provide access to our expansive inventory of family entertainment,” said Dish spokesperson Marc Lumpkin, in an email. Duluth, Ga.-based NCR owns and operates Express kiosks through a license agreement with Dallas-based Blockbuster Inc. – an agreement that is reportedly safeguarded by trust not affected by the bankruptcy, according to spokesperson Jeff Dudash. “Blockbuster is a beneficiary of that trust, but Dish can’t terminate the trademark agreement,” Dudash told The Dallas Morning News. Indeed, NCR plans to rollout another 2,000 Express kiosks this year as it maintains a distant No. 2 market status to leader Redbox. NCR, which entered the kiosk business after acquiring The New Release and DVDPlay, said it remains committed to the kiosk business. “It is NCR Corp.’s kiosk business, not Blockbuster’s,” Dudash said in an email. Eric Wold, director of research with Merriman Capital in San Francisco, said the issue will ultimately decided by the court, if it gets that far. He said Express kiosks continue to underperform compared to Redbox units, including generating about $20,000 in first-year revenue compared to $30,000 for Redbox kiosks. “Remember that it is NCR that owns and operates all of the kiosks and has the distribution relationships with all of the studios. Blockbuster's only involvement was providing use of the brand for a licensing fee,” Wold wrote in a note. The analyst said Redbox parent Coinstar Inc. would be well advised to move on Blockbuster Express agreements with Safeway (1,694 stores) and Publix (1,034 stores), should NCR’s license agreement not be enforced. “If there is any shake-up in NCR's access to the Blockbuster brand, we believe that Redbox could gain, at a minimum, from business disruption at NCR (as they rebrand the kiosks and/or put the business up for sale) and, at a maximum, from the acquisition of NCR's DVD rental division and elimination of the one remaining competitor. |
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Does anyone proofread these articles? Interesting nonetheless.
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The postings on this site are my own and do not represent Blockbuster's positions, strategies, or opinion. The postings on this site are my own and do not represent DISH Network's positions, strategies, or opinion. |
#3
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O snap....I thought ncr would do this because of bankruptcy and contract being null and void
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[SIGPIC][/SIGPIC] ╭∩╮(︶__︶)╭∩╮ Even the Devil, which is the main share holder of blockbuster is saying you guys are making me look bad! Horse Power is how fast you hit the wall. Torque is how far you take the wall with you. |
#4
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I do. Like to keep up with the brand.
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I bet if they change the name their business will improve.
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No thanks, I don't rent enough. Disclaimer: The postings on this site are my own and do not represent Blockbuster's or Dish Network's positions, strategies or opinions, because they are all a bunch of dickless idiots. |
The Following 4 Users Say Thank You to BlockbusterLuvsU For This Useful Post: | ||
Baby Firefly (May 14th, 2011), Backer Card (May 14th, 2011), CheeseMan (May 14th, 2011), JustTheFacts (May 14th, 2011) |
#6
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woooow LOL!!
it's going to cost NCR a pretty dime to remove the name from all of the kiosks! but to that effect, NCR will probably make more money w/o bb. there's a very busy QuikTrip (gas station) that i go to with a Blockbuster Express kiosk. the thing is probably rented from like 10 times a day, no joke. the Redbox by the Carl's Jr? people GO to Carl's Jr just for Redbox.
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Quote:
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KAWLIGA.......I'm not done until they're done. |
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Wasn't the deal between NCR and Blockbuster worked out a year or so ago? Even back then there was rampant speculation that BB could go under or be sold so I would have thought any decent corporate lawyer would have secured the trademarked name through any potential issues. Due diligence, anyone? I agree that it would cost way too much to now go and change all the boxes, so if Dish remains obstinate in the matter then I can certainly see this headed to court.
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Life is not one thing after another, it's the same God damn thing over and over -- Dorothy Parker |
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Quote:
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#10
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Exactly true. The "Blockbuster" name has been tarnished for years now.
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