Redbox stands to gain $50 million in incremental quarterly revenue as a result of the implosion of Movie Gallery/Hollywood Video, according to one analyst. Michael Pachter with Wedbush Morgan believes that this revenue boost should allow Redbox to reveal more than $297 million in Q2 revenue when parent company Coinstar announces its financials on July 29.
Regarding the Redbox revenue infusion from the closures of Movie Gallery and Hollywood Video locations, Pachter said the following:
“Given that the Gallery run rate was $1.8 billion just three years ago, the migration of its customers should have a positive impact on Redbox’s top line growth,”
Pachter was not nearly as sanguine, however, on the prospects of Redbox’s digital initiative that will purportedly be revealed in October, saying that it offers “no competitive advantage over [Netflix’s] Watch Instantly due to content restrictions imposed by several studios.” Said Pachter:
“The best Redbox can hope to do is play catch-up with an increasingly online-entrenched competitor,”
Just how much of a boost will Redbox receive from the demise of a major rival, Insiders? What kind of numbers are we going to be getting on Thursday from Redbox parent Coinstar? Place your bets now in the comments.
(via Home Media Magazine)