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Omnipure Unveils L-Series Fast-Change Filter Line For Coffee Service Tim Sanford Editor@vendingtimes.net

water filtration, water purification, vending, vending machine business, office coffee service, OCS, coffee equipment supplies, foodservice sanitation, water treatment, Omnipure Filter Co., Omnipure water filters, L-Series water filters, Roger Reid, National Sanitation Foundation, NSF-certified, granular activated carbon, California Department of Pesticide Regulation, bacteriostatic claims, carbon block filter CALDWELL, ID -- New from Omnipure Filter Co. is the L-Series line of filters, designed to combine durability and ease of changeout with a choice of treatment options to meet specific location water needs. Omnipure's L-Series complements the recently introduced ELF-Series, developed for high-volume applications ranging from vending machines to coffee shops and restaurants. The new series has been engineered to provide a rugged, versatile and convenient answer to the growing demand for pure water for drinking, ice and beverage preparation in smaller accounts. Formed of injection-molded polypropylene, L-Series filters are constructed of 100% National Sanitation Foundation (NSF)-certified materials. The design features a patented "keyed" configuration to ensure product integrity with simple quarter-turn insertion and removal, and is offered with or without automatic shutoff. L-Series filters are available with a variety of standard media options, including granular activated carbon (GAC) for taste and odor reduction, a depth filtration medium to address sand, grit and sediment problems that can clog or damage downline equipment, and a specially blended polyphosphate medium designed to control mineral deposition associated with "hard" water. The L-Series can also be ordered with the company's premium Omnipure Block media. This family of carbon blocks incorporates technology that optimizes surface area for better contaminant adsorption. Omnipure Block is available in a high capacity 10-micron activated carbon version and a water-polishing, cyst-reducing 1-micron model. Carbon-and-scale inhibitor and carbon-and-lead reduction versions are available for specific applications. Also new from Omnipure and its technology partner, Sciessent, are versions of Omnipure's Aquabond media treated with Sciessent's Agion brand antimicrobial technology. The media have received California Department of Pesticide Regulationregistration, as well as NSF certification for bacteriostatic claims. Aquabond, a carbon-block filter, allows the bonding of a wide range of sorbents designed to remove water contaminants like arsenic, chlorine, copper, lead, mercury and volatile organic compounds (VOCs). Omnipure's carbon block filters are said to be the first and only currently active inline filters to have received both listings and to contain Agion technology. Omnipure notes that this substantiates the claim that they can reduce the growth of bacteria in the filter bed. Aquabond is used in all fluid processing markets, including residential filtration, foodservice, commercial and industrial applications. A recent development, Aquabond is a proprietary patented manufacturing process for preparing specialty granular media for use in a range of drinking water treatment applications. The primary feature of this technology is that it enables the permanent bonding of finely divided particles onto larger support granules, to form unique, application-specific composites. "The L-Series is the latest innovation in Omnipure's 35-year history of providing our customers with in-line filters, made entirely in the U.S.A., that produce better-tasting water in both commercial and residential settings," said company president Roger Reid. In 1970, Omnipure introduced the first small, disposable inline carbon filter. Like all the company's subsequent products, it was designed to eliminate or reduce contaminants that cause unwanted taste, odor and discoloration in potable water. This design imperative has impelled Omnipure's steady growth and development. Omnipure filters initially found their primary uses in water coolers and icemakers. Development of the market has broadened the line's applications to commercial beverage equipment, under-sink and on-counter residential units, and drinking fountains. Omnipure products also are widely used as components in commercial and residential purification systems such as reverse-osmosis units.

Smartphone App Changes Amusement Videos To Gambling Devices Marcus Webb MarcusWebb@aol.com

arcade game, gambling machine, amusement gambling machine Pac-Man, slot machine, poker machine, Garden Grove City Council, coffeehouse raid, amusement business, smartphone enabled gambling machines GARDEN GROVE, CA -- Undercover police activity over the past several months has led to raids at 20 coffeehouses in which 200 gambling machines have been confiscated. The gambling devices were disguised as amusement games such as Pac-Man, but could reportedly change to slot-type gameplay with the flip of a switch. In a new twist, some games were programmed for remote control enabling by a smartphone app that could change machine mode from amusement to gambling. | SEE STORY Following a report by the city's chief of police, the Garden Grove City Council voted this week unanimously to ban arcade machines. A revised ordinance also bans nudity or partial nudity at coffeehouses.

Dunkin' Donuts Inks Keurig K-Cup Deal Emily Jed Emily@vendingtimes.net

Dunkin' Donuts pods, Dunkin' Donuts K-Cups, Keurig, Green Mountain Coffee Roasters, Dunkin' Donuts, single-cup coffee pods, coffee pod brewing, coffee service, office coffee service, OCS, vending CANTON, MA -- Dunkin' Brands Inc. has signed a deal with Green Mountain Coffee Roasters to sell K-Cup portion packs of Dunkin' Donuts coffee at its stores starting this summer. The 14-ct. boxes of Dunkin' K-Cups, for use in Green Mountain's Keurig brewing system, will initially be available exclusively at participating Dunkin' Donuts coffee shops in the U.S. and Canada. The chain will offer the product in five Dunkin' Donuts flavors: original blend, decaf, French vanilla, hazelnut and dark. Canton, MA-based Dunkin' Brands Inc., which is owned by a group of private-equity companies, currently distributes its packaged coffee in grocery stores through J.M. Smucker Co. Green Mountain is also rolling out Folgers and Millstone K-Cups through a deal with Smucker. Dunkin' officials said the partnership with Waterbury, VT-based Green Mountain will allow it to reach additional consumers through "the fastest growing single-serve coffee brewing system." News of the agreement comes on the heels of speculation that Starbucks may be considering a partnership with Green Mountain in its quest to penetrate the single-cup market. Green Mountain chief executive Larry Blanford declined to comment on whether Green Mountain's deal with Dunkin' Donuts precludes a potential deal with Starbucks. In November, select Dunkin' Donuts stores began testing the sale of single-cup pods of the retail chain's popular coffee that can be brewed at home in a variety of machines. | SEE STORY

Kraft And Starbucks Raise Coffee Prices | Articles | Coffee and Foodservice | Vending Times Inc.

Kraft And Starbucks Raise Coffee Prices | Articles | Coffee and Foodservice | Vending Times Inc.

Kraft And Starbucks Raise Coffee Prices Emily Jed Emily@vendingtimes.net

coffee prices, coffee price hike, office coffee service, OCS, coffee vending, Kraft, Maxwell House, Yuban, Starbucks, vending business, vending industry GLENVIEW, IL -- Kraft Foods upped the U.S. list prices for most of its Maxwell House and Yuban coffees by 22% last week, marking the biggest of four hikes in the past year to absorb skyrocketing green coffee costs. The increase follows a 10% increase in February by rival J.M. Smucker Co. on its Folgers and Dunkin' Donuts coffees. Starbucks also raised its price for grocery-packaged coffee by 12% last week for Starbucks and Seattle's Best Coffee brands, the first increase on its retail coffee since March 2008.

Topic: Coffee and Foodservice

Three New Purification Systems Address Today's Water Challenges Tim Sanford Editor@vendingtimes.net

water filtration, water sanitation, Everpure, chloramine-reducing filter cartridge, beverage preparation, large Claris filter, high-output reverse osmosis apparatus, water filter cartridge, 7CLM, vending, vending machine, office coffee service, OCS, office refreshments, food service equipment, pure water service, SR-X scale-inhibition system CHICAGO -- Everpure has expanded its line of water purification equipment with the addition of a chloramine-reducing filter cartridge for foodservice beverage preparation, a large Claris filter that extends protection against mineral deposition in foodservice equipment to steam and combination ovens and a high-output commercial reverse-osmosis apparatus for entire kitchens or stores. The company noted that municipal authorities increasingly are using chloramine as a disinfectant for water supplies. Chloramine is a combination of traditional chlorine with a small quantity of ammonia. Everpure reports that unlike chlorine, chloramine is very stable in water and thus more difficult to remove. Presently in use by a third of U.S. municipalities, the compound is finding favor because it can disinfect water along the full length of a main. Moreover, chlorine is an active element that readily combines with organic molecules in water to form compounds that may be carcinogenic. The Environmental Protection Agency now requires municipalities to ensure that the concentration of these compounds does not exceed 80 parts per billion. Everpure notes that chloramine is less reactive than pure chlorine, and so has proven valuable in meeting this goal. However useful chloramine may be in disinfecting water, it has an adverse effect on taste and odor, and it can damage gaskets and O-rings in appliances. Everpure has developed a filter cartridge, 7CLM, that increases the water's time of contact with a special carbon adsorption element. The 7CLM is NSF-certified to reduce chloramines. It also filters out particles as small as half a micron in size, including Giardia and Cryptosporidium cysts. For these reasons, Everpure said, it is a good choice for fountain, frozen carbonated beverage and drinking water dispensers. Used in conjunction with a demineralizing device like Everpure's SR-X scale-inhibition system, the filter provides additional protection for regular and espresso coffee brewers, icemakers and appliances that use steam. The 7CLM cartridge protects drink system seals, pumps, tubing and small orifices from chemical degradation, clogging, corrosion and abrasive wear. The 7CLM cartridge can be paired with new or existing Everpure heads. It is scheduled to start shipping in April 2011. It is reported to be certified against NSF Standard 42 (taste and odor, Particulate Class I and Standard 53 health effects). Also new is the ComPro reverse osmosis system, offered in three configurations designated by gallonage output: ComPro-675, -1350, and -2025. As the names specify, these can deliver anywhere from 675 to 2,025 gallons of pure water per day. The ComPro system's high output makes it suitable for "whole kitchen" applications, with one unit providing clean water for multiple applications, including hot and cold beverage equipment and steam appliances. The ComPro uses a novel method for flushing the semipermeable membrane. Upon system shutdown, up to three gallons of pure water drive the concentrate out of the RO membrane housings. Everpure reports that this helps to remove materials that could clog the membranes, and bathes them in pure RO permeate during inactivity -- avoiding discharge of water with high TDS content into the storage tank upon restart. This extends membrane life, improves performance and increases consistency of output quality. Because the flush takes place at normal system shutdown -- when the floor tank has reached capacity -- it doesn't disrupt equipment operation. The system produces up to 2,025 gallons of pure water a day with a permeate rate of up to 1.4 gallons per minute. Paired with a floor tank (sold separately), it provides enough daily output to keep up with most foodservice operations, Everpure noted. And it does not require salt. According to the manufacturer, ComPro does not use sodium for ion exchange, so there is no need for salt replenishment -- a task often overlooked by staff. It also avoids adding sodium to the ecosystem, which is being restricted in some areas of the U.S. The ComPro system is engineered to remove 98% of total dissolved solids, with 25% to 75% efficiency, depending on the input's dissolved solids and temperature. Able to handle water with TDS of up to 2,000 parts per million, Everpure explained, the system is well-suited to problem water areas, removing "hardness" as well as iron, lead, chromium 6, heavy metals, chloride, nitrate and sulfate. It includes a 5-micron particle prefilter. Designed for commercial and industrial applications, Everpure's new ComPro features a centrifugal pump which is said to have a service life eight to 12 times longer than that of conventional rotary-vane pumps. A low inlet pressure shutoff protects the pump from damage. The ComPro's small footprint permits it to be floor or wall mounted. Everpure reports that it is simple to install, start up and maintain. The system can be upgraded from lower to higher capacity if water needs increase. It features a Pentair controller, as well as a 30/50 psi permeate pressure switch, two LED status indicators and an LCD status readout (off, run, tank full, replace fuse and low pressure shutoff). It is available now. Everpure's third new product is the Claris XX-Large filter cartridge, designed to extend customized scale prevention capabilities beyond hot beverage applications to include boiler and direct-injection steam and combination ovens, as well as iced tea brewing equipment. The manufacturer notes that untreated "hard" water can damage equipment by depositing minerals ("lime scale") on the interior surfaces of tubing, tanks and heaters. This buildup retards flow and decreases heat transmission, requiring costly service. While some filters control this deposition by adding an inhibitor that keeps the minerals in solution, the new Claris incorporates an ion exchange resin that selectively targets carbonates, nearly eliminating scale formation. It also blends a small amount of filtered water with the demineralized effluent, "buffering" the output to avoid excessively low pH -- high acidity -- that can degrade beverage flavor. The operator can tailor the mineral content to the desired water recipe, thus duplicating an important feature of a reverse osmosis system in a low-maintenance quick-change cartridge device. The Claris XXL also offers a five-stage filtration process, including prefiltering, fine filtration, a solid membrane filter removing particles as small as five microns, and an efficient carbon block that absorbs chemical contaminants, including those that impart undesirable taste and odor. And it adds nothing to the water. Certified to NSF/ANSI Standard 42, the Claris XXL fits the same automatic-shutoff/pressure release filter head as other Claris cartridges. The head, with an integral flush valve, features a flat connector for easy cartridge changes in tight spaces. Claris cartridges now include small, medium, large and XL, as well as the new XXL.

Dish Demands NCR Remove Blockbuster Brand From DVD Vending Machines Emily Jed Emily@vendingtimes.net

vending, vending machine, DVD movie kiosk, DVD rental machine, Dish Network, Blockbuster, NCR, vending machine business, Blockbuster bankruptcy ENGLEWOOD, CO -- Dish Network Corp., the satellite television provider that acquired BlockbusterInc. last month, has asked NCRCorp. to discontinue using the iconic blue-and-yellow Blockbuster brand on its DVD-rental kiosks. Dish Network declared the contract with NCR allowing use of the Blockbuster brand void as part of the Dallas movie-rental chain's court-ordered bankruptcy proceedings in early May. But NCR has disputed Dish's claim as "invalid and unenforceable." The Duluth, GA-based company, which currently operates about 9,000 Blockbuster Express kiosks nationwide, said it plans to keep using the Blockbuster name and threatened legal action if necessary. A bankruptcy hearing on the matter is scheduled for May 26. Under the licensing agreement signed in 2008, NCR owns and operates its kiosks and pays Blockbuster a royalty for using its brand. NCR negotiates directly with studios for DVDs. If Dish successfully voids the contract, the Englewood, CO-based company will have the option to operate the DVD venders itself, renegotiate terms with NCR or designate another kiosk operator to license the name. Dish Network offers video-on-demand and pay-per-view to its satellite TV customers. The company has said its strategy is to combine Blockbuster stores, kiosks, online streaming service and mail rentals with its satellite TV service to deliver content to more viewers. Dish completed its $320 million acquisition of Blockbuster on April 26. Blockbuster filed for bankruptcy in September 2010 with 5,600 stores, including 3,300 in the U.S. The once-dominant movie-rental chain had been struggling to compete in an environment where more consumers are renting movies from Redbox self-service kiosks and through subscription services like Netflix rather than through stores. Blockbuster reportedly lost a total of $1.1 billion since the beginning of 2008 and closed nearly 1,000 stores in the last year alone. |SEE STORY

NCR Demos New Express Entertainment DVD Kiosk

Posted by Michael on Dec 10, 2008 under news

Jola Moss, marketing director of NCR, did a demo of NCR’s new kiosk at a recent trade show. This is the kiosk that was developed for Blockbuster to use in its test deployment of kiosks to compete with Redbox, DVDPlay and others.
In addition to the demo, she also discussed the future of possible “digital download” kiosks NCR is developing using newly developed SD cards to get the movies from the kiosk to your home. Now if only everybody had SD cards built-in to their TVs!
Check out the hardware and software specs of the new kiosk, and watch the video after the break.

THE HARDWARE
In its current form, the kiosk is quite ugly with a very retro, ATM-like design. Not nearly as elegant as the Redbox kiosks we are used to, but I assume they may tweak the design when they install it at actual retail locations. The card reader also looks quite susceptible to phishing attacks like we saw early this year at Redbox.
The system uses RFID to track the discs, which means no barcode scanning is necessary. Discs can be inserted either direction and the kiosk can still read it. This should be nice for inventory control and make it less likely a customer will return a disc and still be charged because of bad barcodes.
With RFID, the system should always have an accurate account of exactly which discs are in the machine, as well. As long as the technology holds up, this should be a step forward for the kiosk owners and customers alike.
The DVD return slot is a bit weird, and it appears that the DVDs are stored “naked” in the kiosk, with no case like those used at Redbox. While this could allow for more inventory to be stored in the kiosk, it could cause the discs to be more easily scratched. As Redbox knows, scratched and unplayable discs are a customer service nightmare.
Update: Apparently the DVDs are not stored “naked”, but the machine takes the entire black sleeve back into the machine. Thanks to Steve for clarifying.
THE SOFTWARE
The software seems adequate, with title sorting, DVD cover art, etc. I saw no place for entering a promo code in the demo, but something like that is easily added. Software can easily be changed, and Redbox has had a lot of time to improve their software to make it easy to use, so I will give NCR the benefit of the doubt in this area.
Check out the video below and let me know what you think.

Source: Self-service & Kiosk Association

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NCR, Dish Network Battle Over 9,000 Blockbuster Rental Kiosks

Dish Network, which acquired the bankrupt Blockbuster chain last month, has told NCR Corp. to stop using the Blockbuster brand on the approximately 9,000 Blockbuster Express DVD rental kiosks it operates. NCR has so far refused to accede, and it's possible the fight may end up in court.

NCR builds and operates the kiosks, often placed in grocery and convenience stores, and pays Blockbuster for the use of its brand while collecting revenues from the DVD rentals, according to published reports. In February, Blockbuster had announced plans to add 3,000 rental kiosks to the 8,000 NCR was operating at the time, saying that the kiosks were performing well even though its brick-and-mortar stores were lagging. NCR said average revenue per kiosk grew 16% per quarter in 2010 and estimated the 3,000 additional kiosks would generate $200 million in revenue in 2011.

NCR spokesman Jeff Dudash says the Blockbuster Express name, design and related trademarks are held by a trust that was not part of Blockbuster's September 2010 bankruptcy filing.

Dish Network claims the terms of Blockbuster's bankruptcy and its subsequent purchase give it the option to accept and reject contracts and leases, including the one with NCR, and it sent the technology vendor a termination letter expressing its intent to end the pact. Dudash is quoted in published reports saying "There will be legal proceedings to address this that will come up at the end of the month."

If Dish is successful in voiding the contract with NCR, its options could include owning the kiosk business itself, renegotiating terms with NCR or seeking another kiosk company to license the name.

In other Dish Network news, the company named Joseph P. Clayton its president and CEO on May 16. Charles Ergen, who formerly held these positions, will remain as chairman of Dish Network. In a 38-year career Clayton has held positions at General Electric, RCA and Thomson, and previously served as CEO and then chairman of Sirius Satellite Radio.

For related content: Blockbuster to Deploy 3,000 Additional Express Kiosks

Blockbuster Files for Bankruptcy: Will Evaluate Stores for Profitability

NCR to install BLOCKBUSTER Express DVD kiosks at more than 300 RaceTrac convenience stores

March 31, 2011

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Kiosks being added in Georgia, Florida, Mississippi, Louisiana and Texas stores

DULUTH, Ga. – NCR Corporation (NYSE: NCR) is installing its BLOCKBUSTER Express®-branded movie kiosks in 309 RaceTrac convenience stores located in five states throughout the Southeast, bringing a convenient and affordable entertainment option to its customers. Nearly 200 kiosks already are installed, with remaining kiosks to be completed by June 2011.

RaceTrac customers can rent their favorite new movies 24 hours a day from BLOCKBUSTER Express kiosks, which will be located either inside or outside most RaceTrac stores. With a simple swipe of their credit or debit card, customers will have access to the widest selection of popular movies available starting at only $1 per night, per rental. Customers can keep their movies as long as they want and return their selections to any BLOCKBUSTER Express kiosk.

As part of the new partnership, RaceTrac will be running a two month promotion from April 3 through June 5, where customers renting a DVD can purchase a two-liter Coke product and any one of Lance popcorn, 5 oz. Sour Patch Kids, or 5 oz. Sour Patch Watermelons for only $3, by showing the RaceTrac associate their BLOCKBUSTER DVD case at checkout.

“Because RaceTrac guests are always on the go, we strive to provide them with value and convenience with everything we offer,” said Eric Williams, vice president of Marketing and Category Management, RaceTrac. “With BLOCKBUSTER Express, our guests are guaranteed a great selection and a great price on their favorite movie each time they visit.”

BLOCKBUSTER Express kiosks are the highest-capacity DVD-rental kiosk in the industry, with the capability to hold more than 950 DVDs each, including Black Swanand Tangled. For a full list of titles available at BLOCKBUSTER Express kiosks, visitwww.blockbusterexpress.com, where customers can rent a DVD online for pick-up at a kiosk.

“We are excited to help RaceTrac’s customers make every night a movie night,” said Justin Hotard, vice president and general manager, NCR Entertainment. “RaceTrac has a long history of delivering exceptional service and convenience to its customers throughout the Southeast, and we are pleased to be their entertainment partner. Our partnership with RaceTrac will help NCR continue to grow our BLOCKBUSTER Express business in key markets, giving consumers even more convenient locations to choose.”

For more information about RaceTrac, visit www.racetrac.com.

About NCR Corporation
NCR Corporation (NYSE: NCR) is a global technology company leading how the world connects, interacts and transacts with business. NCR’s assisted- and self-service solutions and comprehensive support services address the needs of retail, financial, travel, healthcare, hospitality, entertainment, gaming and public sector organizations in more than 100 countries. NCR (www.ncr.com) is headquartered in Duluth, Georgia.

# # #

NCR is a trademark of NCR Corporation in the United States and other countries.

BLOCKBUSTER Express is a trademark of the BB 2009 Trust and is licensed to NCR.

News Media Contacts

NCR Corporation

Jeff Dudash

jeff.dudash@ncr.com

NCR challenges Redbox for DVD-kiosk throne

By Jessica Shambora, reporterMay 17, 2010: 2:30 PM ET

(Fortune) -- No longer content to just process other companies' transactions, NCR wants to take on some of its own.

The nation's largest maker of ATMs embarked on its first retail venture last year by rolling out DVD-rental kiosks across the U.S., a move that's part of a wider strategy to capture a piece of the rapidly transforming entertainment market.

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Until now, the red-hot DVD kiosk business has been the mostly unchallenged territory of Coinstar's (CSTR) Redbox, which operates 22,400 machines at locations including Wal-Mart (WMT, Fortune 500), McDonalds (MCD, Fortune 500), and Walgreens (WAG,Fortune 500). Last year, Redbox's kiosks collected $774 million in sales out of an estimated $950 million market.

In tandem with rental-by-mail service Netflix (NFLX), Redbox has upended the video rental industry by providing consumers with $1 per day rentals at convenient locations. Traditional video rental sales fell 23% last year to $3.3 billion and are expected to drop another 18% in 2010, according to Adams Research.

Enter NCR (NCR, Fortune 500), which plans to use its expertise in automated transactions to carve out a share of the kiosk market, which is projected to grow 37% this year to $1.3 billion. Although a latecomer to the game, with only 5,000 kiosks installed, NCR has quickly become a contender.

In 2009 alone, NCR acquired two smaller players, TNR and DVDPlay, giving it an immediate foothold in the market. It promptly began to rebrand the kiosks it acquired under the name Blockbuster Express, thanks to a licensing partnership with the beleaguered video rental giant. NCR claims to have seen a significant lift in traffic to existing kiosks following their rechristening with the Blockbuster (BBI, Fortune 500) name.

"Blockbuster is still an incredibly well known consumer brand," says video industry veteran Will Richmond, whose VideoNuze blog follows the business's twists and turns. "It's always easier to roll out a consumer business when there's awareness of a brand."

NCR picked up another asset last June when it hired general manager of entertainment solutions Alex Camara away from Coinstar after 10 years there, where he was part of the team that acquired Redbox. In addition to picking up DVDPlay, Camara has struck a number of key retail partnerships that include installing Blockbuster Express kiosks at Duane Reade and a number of other grocery and convenience-store chains, which will be essential to NCR's goal of reaching 10,000 kiosks by year's end.

With both Redbox and NCR in a race to populate the nation with DVD kiosks, some may be wondering, how many kiosks do we really need? Will the red Redboxes and blue Blockbuster Express machines one day become as ubiquitous as the red and blue of Coca-Cola (COKE) and Pepsi (PEP, Fortune 500) vending machines?

It's still early in the game. Adams Research predicts the market can support 60,000 DVD kiosks, a milestone predicted for 2014, when the DVD kiosk market is expected to reach $2 billion.

Meanwhile, the proliferation of the kiosks has actually led to an increase in DVD rentals. Total revenue, however, hasn't been keeping pace; the average revenue per transaction is lower, due to the $1 per day price point at the kiosks and to Netflix's subscription rates.

From ATMs to DVDs: a logical transition?

While the DVD kiosk market seems like it can support the entrance of a second player, some are still uncertain if the company will be able to manage the leap from producing and selling ATM software and machines to a consumer-facing retail project.

"It's a very risky endeavor because they got into a business as an entertainment retailer that they knew nothing about," explains Wedbush Securities analyst Gil Luria. "The logistical part of it, the technology part of it, they are absolutely world class. But in terms of making merchandising decisions, negotiating with studios, and finding the appropriate business path, only time will tell if this is a stretch for them."

Analysts and industry watchers are concerned with NCR's ability to deal with the Hollywood studios, especially given the recent litigation between Redbox and the studios.

Unlike traditional video rental vendors, kiosk owners do not share any of their revenue with studios. On top of that, kiosks also cut into DVD sales by offering movie rentals as soon as the DVDs are available, breaking the traditional 28-day window the studios use to protect DVD sales.

Making friends with Hollywood

But Luria believes that NCR will benefit from Redbox's settlement with the studios. "At the least, they can get the same settlement that Redbox has, and at best, they can get something that they feel is even more valuable," he says.

NCR does not currently have any agreement with the studios. But they have an angle they think will appeal to the studios: starting this summer, they plan to use the kiosks to sell DVDs, giving the studios a chance to recoup lost DVD sales revenue and possibly encourage impulse DVD purchases.

To handle the sales, NCR designed its new fleet of kiosks with twice the storage capacity of Redbox kiosks, and the machines also have the ability to sell finished goods. This means DVDs for now, but could one day include video games and music.

Crossing the digital divide

Of course, the number of people looking to rent or buy physical media will gradually dwindle. But NCR has a plan for that too.

Through a partnership with InMotion entertainment, NCR is installing digital kiosks in U.S. airports that will allow travelers to download movies, music, games, and e-books, and transfer them to SD memory cards or USB memory sticks. Eventually, the digital offerings could become available at the DVD-rental kiosks as well.

"There's a clear roadmap of physical [media] being around for a long time to come," says NCR's Camara. "But the kiosks are partly future-proofed."

Getting into the entertainment biz might seem an unlikely venture for an ATM-machine maker. But then again, NCR started out making cash registers in 1884. If anything, the company seems to have cornered the market on changing with the times.