Universal to test higher-priced DVD rentals at Blockbuster kiosks on the same day of release

Universal to make some DVDs available earlier

LOS ANGELES — Universal Pictures said Wednesday that it will make some movies available to Blockbuster Express kiosks on the same day as their release for sale — but make customers pay a premium above the $1-per-night they can rent them for 28 days later.

The move inches Universal closer to a handful of other studios that allow kiosk operators such as Coinstar Inc.’s Redbox to rent out movies on the same day of release in the home video market, such as Viacom Inc.’s Paramount, The Walt Disney Co. and Sony Corp.

Studios such as News Corp.’s 20th Century Fox, General Electric Co.’s Universal and Time Warner Inc.’s Warner Bros. have prevented kiosk rentals until 28 days after discs were released in order to help support flagging sales.

In keeping with that idea, Universal is keeping most of its movies out of kiosks until 28 days after their initial release. It will also test selling DVDs from Blockbuster kiosks.

Universal’s home entertainment president, Craig Kornblau, said in a statement the tests will “help us identify new outlets for our movies while giving our customers the flexibility and choice they want in their entertainment purchases.”

Blockbuster Inc. filed for Chapter 11 bankruptcy protection last month and it is examining closing more brick-and-mortar stores in favor of online and mail-order distribution. Some 7,000 Blockbuster Express kiosks are run by NCR Corp.