Redbox got a bit of a black eye in the fourth quarter of 2015, it seems. Redbox announced a 17 percent drop in revenue and a nearly 25 percent decline in year-over-year movie rentals.
Even uglier, operating income dropped 50 percent from the same period in the previous year.
Erik Prusch, CEO of Redox parent Outerwall and acting president of Redbox, tried to put a happy long-term spin on things:
“Redbox is a compelling business. We will manage the business for profitability and cash flow, and we will continue our focus on expense management, operational efficiencies and network optimization.
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. . We are confident that millions of consumers will continue renting from Redbox for many years to come, as a majority of our customers use Redbox to complement digital alternatives.
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We fully intend to continue meeting the entertainment needs of our customers as we maintain our focus on providing value for all of our stakeholders.”
Do you share Prusch’s confidence that millions of customers will continue to rent from Redbox in the coming years. Do you still plan to do so?
[via Home Media Magazine]
This is just one more step on the Block Buster road. RedBox is bleeding money. They can’t keep this up for long. They will need to down size again. Close more Box’s. ? One thing they can do maybe….
Take on some outside investor’s That have some big bucks to burn.
The RedBox boat is sinking, and starting to sink fast… it has been sinking slow for sometime now. But know?
One more thing they may do… ? Just go streaming only? And charge so much a month…Like Netflix.. But then they would need some partner again like they had. But that did not work.
RedBox is in a jam any way you look at it…
They tried the streaming and failed I thought they did a ok job but they couldnt compete
Ding! Ding! Ding! We have a winner!
Don’t count Redbox out just yet.
Yes it will have to get smaller and smaller, deciding which kiosks to continually close, BUT as long as there are: soccer moms and those without or can not afford broadband services, Redbox will survive.
And one more thing… expect nightly rentals to continue to rise to the three or four dollar level. Even at this price point, there will still be demand for disk rental.
Tell Hollywood to make more movies people want to see.
[Reposted in correct reply post] Ding! Ding! Ding! We have a winner. The poor release schedule was a big factor. Tons of promo codes for lame movies.
Most of the movies made today are not worth watching. I love movies but all the studios care about are special effects and big blockbusters!! I love movies that speak to me and make me think. Movies that are great stories. I rented 2 this past week that filled the bill,”Bridge of spies” and “Truth”.
Maybe if they’d stock movies I want to watch it would help. I go on the app on my phone or stop by a kiosk to browse & not many titles grab me. I agree with Patricia, the music industry is the same way today, so much crap & so little talent. I haven’t purchased any new music in years.