Dish wants NCR to remove Blockbuster name from video rental kiosks
- Thread starter Mojo Jojo
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It would be more benificial for Dish to leave the blockbuster name on those Kiosks for name reconition only and to establish a presence in the marketplace.
Dish either needs to purchase all the Kiosks from NCR, or continue to let them to use the name
Dish either needs to purchase all the Kiosks from NCR, or continue to let them to use the name
What I think this is about is Dish establishing they have the right to any agreement Blockbuster had, and have the right to exercise whatever was in that agreement. It is possible the agreement was indeed ended with acquisition all depends on the actual agreement of course. "As part of Dish’s bankruptcy court-approved acquisition of Dallas-based Blockbuster last month, the Englewood, Colo.-based satellite network operator has the option to accept or reject contracts and leases." That is very common.
I can tell you, being held in trust means nothing at all in and of itself, if that is what NCR is hanging their hats on. It can and often easily is determined any and all agreement the former business had is ended when bankruptcy sales are made. Again, all depends on the actual agreement.
It reads to me NCR wanted to continue on like nothing has changed, Dish took exception to that.
I can tell you, being held in trust means nothing at all in and of itself, if that is what NCR is hanging their hats on. It can and often easily is determined any and all agreement the former business had is ended when bankruptcy sales are made. Again, all depends on the actual agreement.
It reads to me NCR wanted to continue on like nothing has changed, Dish took exception to that.
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I don't know if I understand this, unless DISH is going to get out of the kiosk business completely. If they are planning to stay in the kiosk business, but do it themselves, then this is simply shooting themselves in the foot. Going from 9k locations to zero only to start over is stupid. And, those 9,000 locations won't be available for the DISH-owned/operated ones. If they plan to do their own kiosks, they should have worked out a transition plan. This seems to me that they're getting out of the kiosk business totally.
If Dish wants to start from scratch, it will be easy. Those 9,000 locations are just a drop in the bucket. There are plenty more locations available for kiosk placement. This way they get all the profit, and not just a licensing fee from NCR.
True, but if they worked out a transition plan they wouldn't have to do all that work. For the money they're going to spend on developing a kiosk, developing software, getting a network of sales people in place, etc. they could have likely bought NCR out.
That would definitely have been the easy way, but maybe NCR wasn't/isn't interested in selling.
And those kiosks are already available, they just buy them from the manufacturer, slap on a BB sticker, and you're good to go.
Maybe after this, NCR will sell out.
Retail kiosks are a principal product line for NCR so I'm guessing NCR is the manufacturer. I'm not sure that Dish really wants to compete in that low margin market with NCR and Redbox. They may just want to control the brand name. We'll see. I think NCR would do just fine with a different name. I prefer the NCR kiosks over Redbox because they allow for using promo codes on online reservations while Redbox doesn't.
NCR is the manufacturer.
I'm assuming that Dish is getting out of the business. They wouldn't have made such a quick demand for NCR to stop using the name if they had a plan for their own kiosks.
NCR manufactures ALL DVD rental kiosks?
I just Googled and saw quite a few different ones out there.
I just Googled and saw quite a few different ones out there.
I don't think anyone said that. What we said was that NCR likely makes its own kiosks as that's a principal component of their business.
And I really didn't know.
I'm guessing NCR would keep their business and rename it, since it is established.
And, if Dish desires to get in the game, they will just purchase kiosks from whoever they choose, not necessarily from NCR.
Dish looking for another legal battle to loose millions fighting, NCR has the rights to the name, NCR will take you to the bank charlie!
Dish you will now be counter sued and told to stop using the "Blockbuster" name which NCR is the sole owner of.
Dish you will now be counter sued and told to stop using the "Blockbuster" name which NCR is the sole owner of.
Nah this will not cost Dish hardly anything. It will be decided by the bankruptcy judge. Both sides will probably submit a brief and the judge will rule. The judge will decide if the NCR agreement is subject to the bankruptcy or not and if the agreement can be nullified by the bankruptcy.
Update: Dish Network, NCR Spar Over Blockbuster Brand Use on Movie-Rental Kiosks
From [URL]http://www.bloomberg.com/news/2011-05-13/dish-ncr-fight-for-rights-to-blockbuster-brand-in-movie-rental-kiosks.html:[/URL]
From [URL]http://www.bloomberg.com/news/2011-05-13/dish-ncr-fight-for-rights-to-blockbuster-brand-in-movie-rental-kiosks.html:[/URL]
NCR is the manufacturer of the current DVD kiosks. I'm sure Redbox's kiosks are manufactured by someone else, but I'd be willing to bet they have a lock on those machines. Either way, going from 9,000 locations to zero only to try to start over would be monumentally stupid. I have to believe DISH wants to get out of that business completely. I suspect they may want to get out of the physical media business completely eventually.
They wouldn't be going from 9,000 to zero. They (Blockbuster/DISH) currently have zero. NCR (Blockbuster Express) has 9,000.
NCR keeps their business with a new name. DISH/Blockbuster starts fresh with BB kiosks.
If BB/Dish had no plans to stay in the kiosk game, why would they care if NCR still uses the name? They still keep getting the licensing fee for use of the BBE name, and no skin off their backs because it is not competition.
In terms of customer perception, they'd be going from 9,000 kiosks to zero kiosks. Whoever owns the current kiosks doesn't matter to the average consumer. All that current Blockbuster members know is that the kiosks they were able to get DVDs out of via their subscription no longer take their subscriptions, and they either have to find another kiosk location (which, as of right now there are none) or switch to something else (redbox, stick with whatever NCR does, etc).
I don't really care if DISH stays in the business or not, I don't use kiosks. However simply as a matter of business and marketing, I can't see the logic in immediately pulling the Blockbuster name off all those kiosks and starting over.
Funny that no one has brought up the option that Dish may want more money for the Blockbuster name franchise. The cancelation is negotiating strategy. Next Dish ask for more money for the useage of the name.
