PaulDavis
Latest
Redbox passed 30,000 kiosks in Q4 2010, but still missed financial expectations
Redbox may be a red-logoed stepchild compared to industry darling Netflix, but according to its parent company Coinstar's Q4 earnings call, it still managed to pass the 30,000 kiosk milestone, increase market share to 30 percent and grow DVD revenue by 38 percent to $319.6 million. Combined with blowing by one billion rentals back in September and avoiding a lawsuit with Fox, the news would have culminated in champagne and karaoke for Coinstar shareholders... except for one thing: new releases underperformed during the last quarter along with Blu-ray rentals. Coinstar CEO Paul Davis was quick to bolster investor concerns on the call, however, stating company management had taken "definitive steps to correct the issues" and was ready to "leverage the First-sale doctrine" -- which refers to a Supreme Court ruling limiting the control of copyright holders over the re-selling of its property -- should studios get sassy in future distribution negotiations. More updates on the company's streaming plans didn't materialize, though, so you'll have to chuck those dreams of instant rental gratification for a buck back in the deep freeze at least in the near term. Otherwise, hit up the source links below to ogle data tables to your heart's content.
Redbox announces plans to enter streaming business next year
It may not be quite the same obvious transition that Netflix made, but it looks like DVD kiosk company Redbox will soon be making a push of its own into the streaming business. That word comes straight from the CEO of parent company Coinstar, Paul Davis, who told listeners to the company's recent earnings call that it is in "detailed negotiations with a number of highly interested parties" to launch a "Redbox-branded" streaming service sometime next year. That would seem to suggest that Redbox will be relying on a partner already established in the field rather than rolling its own service, but Davis was otherwise light on details, adding only that streaming represents a "significant opportunity" for the company. That doesn't mean Redbox will be getting out of the kiosk business anytime soon, though -- according to Davis, there's still a "long, profitable life ahead" there.
