Redbox parent Outerwall will be reporting on its second quarter fiscal results next week. According to one analyst, while Redbox’s overall revenue will grow, its average revenue per kiosk will decline.
B. Riley & Co. analyst Eric Wold believes that even though Redbox’s per-kiosk revenue will decline by as much as 8.5 percent, the shortfall will be offset by the net addition of another 900 kiosks.
Said Wold:
“We believe Q2 results are less important than management [indicates], at least in maintaining [second-half 2013] guidance,”
Wold also feels that a strong upcoming slate of releases in the second half of the year, driven by summer blockbusters, will also help Redbox’s fortunes the rest of this year.
How do you think things will go when Redbox reports its financials in a few short days?
[via Home Media Magazine]
I use the Box every now and then….
But most of the time I don’t see much I want..
As I can get it with my NetFlix account…
Have a good one all.
And 900 more.. HUG! I mean I have about 8 of them with in 4 miles of me..
-How do you think things will go when Redbox reports its financials in a few short days?
They’re going to start tap dancing …especially on the books! ;)
They better hope that the content available in the second half will salvage the NEXT fiscal year.
If there’s a decline in revenue, it’s because of two things: Too many Redboxes available (2 per store around here and I can’t give you the name of a grocery store without one) and the absolute lack of quality movies available. That last one is the responsibility of the studios. The choices in the past 6 months have been dismal at best.
I’m in total agreement. I use Redbox for the blockbusters ONLY. I use Netflix for the important stuff. Thanks to the crap the studios are putting out there was not been/will not be anything of great interest released anytime soon. People are tired of renting “D” list movies from Redbox.