Redbox parent Coinstar beat analysts’ estimates with its first-quarter earnings today by announcing a Q1 profit of $6.4 million on revenue of $350.1 million. The company’s profit during the first three months of 2010 tripled that of the same period in 2009.
One factor that contributed to Coinstar’s bottom line was reduced product costs derived from recent windowing deals with Warner, Fox and Universal. Paul Davis, Coinstar’s CEO, said the following on the subject:
“One of the things that happened with the workaround is we didn’t get the quantities we wanted to stock in our machines . . . We still prefer day and date, and we have studios that believe in that, and see the value in day and date. If a studio is adamant about moving to a window, it’s got to be a win for us, a win for them.”
Other highlights of the earnings call included news that Redbox had added 2,400 kiosks during the quarter, raising its total to 24,800 installed units nationwide. Davis also stated that Redbox plans to offer Blu-ray disc rentals in kiosks across the nation in the “next few months”, though at a higher (but unspecified) price point than its current $1 per night for DVDs.
Do you find yourself renting more, fewer or the same number of movies from Redbox this year compared to last, Insiders? Any guesses on when Redbox will reach 30,000 kiosks? What’s next for the kiosk giant?
(via Home Media Magazine)