With most Redbox kiosks now stocking Blu-rays, the HD discs will account for a quarter of the company’s revenue by the end of next year, predicts one analyst. Besides generating 25% of Redbox’s 2011 revenue, Michael Pachter with Wedbush Morgan also believes that Blu-ray will reach a household penetration of 30% by the end of next year.
Pachter also expects Redbox to easily reach its recent estimate that 5-10% of its disc rentals in 2010 will be Blu-ray. Said Pachter:
“We believe Redbox will see some comp and earnings growth … in the back half of 2010, especially as it sees higher gross profit dollars from the higher priced dollars paid for Blu-ray and video game rentals,”
Do these numbers sound right, Insiders? Do you find yourself renting more HD discs from your local Redbox now that they are more widely available?
(via Home Media Magazine)