On Monday, I wrote about the evidence that the DVD market is fading (and taking Blu-ray’s hopes with it). So of course, I immediately found one more bit of evidence that adds more weight to the conclusion.
NCR and MOD Systems announced on Monday that they were launching a new line of digital movie kiosks that will download movies to SD cards, which are the same memory cards used in digital cameras and computers. The pilot installations will be in select Blockbuster and other movie rental chain stores, and customers will be able to choose from more than 1,000 movie titles. They will have up to 30 days to start watching the movie, and then once they start, they will be able to watch the movie all they want for a 48 hour period.
There’s no physical inventory to maintain, and nothing to return. Consumers will keep track of the SD cards, however, so that they can reuse them to rent other movies.
Red Box has made the kiosk business work for renting physical DVDs, but this new service could pose a serious challenge to that business. When the kiosk inventory can be updated over the Internet, with no visit to the machine by a service person required, the cost savings will be enormous.
It looks like the chips are down for DVDs.