DULUTH, Ga. (

TheStreet

) --

NCR

(NCR) - Get Report

plans to announce Thursday it is acquiring DVD kiosk operator

DVDPlay

, a report says.

NCR will convert DVDPlay's 1,300 kiosks to the Blockbuster Express brand name, a move that challenges rival and market leader

Redbox

, the

Wall Street Journal

reports.

NCR will end the year with 3,800 kiosks vs. Redbox's U.S. kiosks of more than 20,000. Acquiring DVDPlay gives NCR a boost in California, one of Redbox's weakest markets, where DVDPlay has kiosks in places such as Safeway stores, the

TST Recommends

Journal

notes.

Redbox is a unit of

Coinstar

(CSTR) - Get Report

.

Blockbuster

(BBI) - Get Report

licenses its brand to NCR and takes a cut of rental revenue from the kiosks.

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-- Reported by Joseph Woelfel in New York.

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