When Redbox parent Outerwall reported its first quarter financials late last week, the numbers were not great, with a 31 percent drop in profit and a 19 percent drop in revenue compared to the previous year. Several analysts, however, think that Redbox may be on the road to renewed stability.
Michael Pachter with Wedbush Securities believes that there’s a large cohort of movie lovers that will value price over convenience and help Redbox’s fortunes in the near-future. Said Pachter:
“We believe that a stubborn cost-conscious base of consumers will steadfastly refuse to switch to the higher priced, more convenient on-demand service, and we think that Redbox revenues will stabilize (perhaps at current levels) in the near future,”
B. Riley & Co. analyst Eric Wold also thinks that Redbox, due to some smart moves by its management, may see some momentum in the coming months:
“While Redbox faces a somewhat difficult rental environment during 2016 (with the Olympics and election), we come out of Q1 optimistic that management is focused on driving traffic/rentals in a margin-friendly manner as opposed to fighting the [release] slate,”
What do you think, Insiders? Can Redbox turn things around?
[via Home Media Magazine]
All this talk and hot air..= In English… RedBox is still going down hill.
They are still bleeding money. They still need to hook up with someone that has Big time Money to burn. THey need to go online again. And try this.
I know millions still like the disc in hand. I do..
But in the next few years are so. It will be a thing of the past.
Everything will be online. LIke Netflix.
Now the Box can……
1. Start a online deal again. And try to under sell Netflix, Hulu, Amazon, Warner Archives.
2. Try a online rent a movie. y $1.00 a movie… And give you 24 Hrs to watch it.
3. Start a deal up like Netflix & Hulu.. So much a month. And have what Netflix, Hulu, & Amazon don’t have.. And that is a tall order.
The box is not cutting it. And just going to get worse. I know it, you know it. And so do they.
They have down sized. Let people go. Took out all kinds of box’s.
And uped the price…
Not much more they can do…. If they up the price again. That will run more people off.
Online is the only thing they can do. Try it again..
If that does not work…. ? I think that will be the end of it…
One more thing they can try? Go back to the very start….. 99 cents a day.
And have some good old moves from the past… Just a tought.
What they are doing now. Not working…