Blockbuster to Test Digital Kiosk, Simpler Pricing

Blockbuster Inc. May 15 said it is beginning pilot tests of digital kiosks that will let consumers download movie rentals to portable devices and memory sticks – the latter playable on a PC and television.

During an investor call, CEO Jim Keyes said Blockbuster had signed a deal with MCR Corp., which will manufacture the kiosks. He said the tests would be conducted over a six- to 12-month period.

Keyes, who has made digital distribution a cornerstone of his retail strategy and possible acquisition of Circuit City Stores Inc., admitted the kiosks were in the early phase of development but believed Blockbuster could be a first mover in the space.