Not all analysts think Redbox’s recent disappointing Q2 numbers will be improving any time soon, it seems. William Blair & Co. analyst Ralph Schackart, for one, believes that the impact of Redbox’s 28-day delay deals on new releases from the Hollywood Three will continue to haunt it. Not only that, but Schackart also sees more studios jumping on the delay window bandwagon in the not-too-distant future.
“We believe the impact of an increasing number of titles delayed 28 days is still too great a risk to get positive on [parent Coinstar] shares . . . Over the next couple of years, we expect all major new releases to move to this model.”
Is this bold prediction on the money or way out there? What would the future look like for Redbox if it was saddled with new release delay window deals from all or most studios?
(via Home Media Magazine)