Sad thing is Blockbuster had a kiosk developed long before Red Box existed.
This is a sad story that has existed in corporate America for years.
Basically a company develops something totally innovative and becomes a market leader. They hire managers to run the business. The managers become territorial and kill innovation.
Blockbuster also had a decent mail order strategy developed before the box store executives killed it.
The problem with Blockbuster is they worried about internal innovation cannablizing on existing infrastructure sales.
They were too stupid to realize that if they were smart enough to come up with an idea, someone else is thinking the samething somewhere else. The difference between Alexander Graham Bell being famous and Elisha Gray is simply the time the patent was filed.