Why didn't I see this coming?!
Shocking absolutely no one, Blockbuster today announced a net loss of $65.4 million in the first quarter of 2010, compared to a profit of $27.7 million in the same period last year. BB’s revenue dropped 13% to $939.4 million and same-store sales dropped 7.1%.
Update: Blockbuster shares dropped 20% after the news broke, falling to 39 cents per share in after hours trading
Before you begin to think too highly of him, remember that this is the man who gave us two 'Madagascar' films.
Every now and then, it’s refreshing to hear some brutal honesty from a Hollywood executive. Speaking at the recent Jefferies & Co. Global Internet, Media & Telecom Conference, DreamWorks Animation CEO Jeffrey Katzenberg said that the decline of DVD sell-through is unlikely to reverse itself anytime soon, and the studios may have only themselves to blame.
Katzenberg, who has been a major Hollywood player for a long time, said that the change in the home video market was “systemic” rather than “cyclical”. He also stated that the studios’ “greed killed the goose” as Hollywood mistakenly believed that consumers would never lose their willingness to pay high prices to own DVDs. Read the rest of this entry »
Redbox’s near-ubiquitous rental kiosks more than pay for themselves within the first few 24-36 months of deployment, according to Coinstar CEO Paul Davis. During remarks at the recent Jefferies & Co. Global Internet, Media & Telecom Conference, Davis said that Redbox kiosks typically cost about $15,000 to deploy, and usually earn roughly $50,000 within 90 days in the 3rd year of operation. [admin edit: note corrections made above]
With both DVD sales and rentals in decline these days, Hollywood’s been looking for some good news in the struggling home video market. Last week’s FCC decision to allow studios to deliver first-run movies directly to consumers’ TVs may be seen as a ray of hope for frustrated studio execs.
I have been seeing some comments from some of you about not getting the promo codes from the rent-3-get-1-free promo Redbox did in April. Redbox said these codes would be available for use from May 7 through the end of the month.
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Did you rent 3 movies in April (paid rentals) and receive your promo code yet? Or, are you like others and still waiting for the code?
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Let us know in the comments, and hopefully Redbox will get on the ball with delivering these out to everyone.
I have been seeing reports over the last few days from commenters gman69 and ladoblaze that they are seeing a price increase to $1.15 (+tax) per night in their area. This comes after other price testing late last year.
Ladoblaze says they are seeing this in Washington State – are you seeing this in your area?
While price testing is nothing new, it does come as a bit of a surprise so close on the heels of Redbox’s recent deals with some studios that put a 28-day delay on new releases, and after Coinstar reported a tripling of profits over last year.
Here is what is coming to Redbox next week (May 11, 2010). What will you be watching?
6 Guns 
Big Fan 
Daybreakers 
Johnny Test: Johnny Test Vs Bling Bling Boy 
Legion 
Matilda (1996) 
Just some quick news on a press release put out by Redbox and Flextronics celebrating the production of 25,000 kiosks. Flextronics is the producer of the Redbox kiosks that we all know and love.
The question here is, how many more kiosks will Redbox deploy? 25,000 is quite a large number – will it get to 50,000? 100,000? Are they going to reach a point of saturation before that? Will streaming video put a dent in these deployments soon?
With strong competition from NCR, how much marketshare will Redbox give up to Blockbuster Express? How many more grocery and convenience stores are there that will get these machines?
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There is definitely a limited number.
These are all good questions, and no one knows the answers for sure. The entertainment industry has been evolving fast, and any company could step up at anytime. Will it be Blockbuster or Netflix? Will a newcomer come to the scene? Time will tell. For me, I put my bet on digital distribution – the question is who will do it best?
Full press release after the break…
I just read an interesting editorial from Alex Morris over at Seeking Alpha that gives a great look back at some of the history of Blockbuster, Movie Gallery, Netflix, Redbox and others, and how the first two paid the price for trying to keep things the same when the industry was changing around them.
I am always fascinated by decisions that are made by highly-paid executives when they think they are on the top of the world, even as their world begins to crumble around them. Take a look after the break to see some of this history, and be sure to share your thoughts in the comments about the decisions of the past and what the future might bring…
Things are looking up over at Time Warner, with the entertainment giant posting record profits for the last quarter. Income rose $725 million from Q1 in 2009, a full 10% increase.
According to the filing, most of the increase comes from their television networks, including CNN, TBS, TNT and others.
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They are also believed to see a continued boost due to Conan O’Brien coming to TBS this fall, as well as a new agreement for them to air NCAA March Madness for the next 14 years.
