Redbox has big plans for the future, it seems, and it now has the office space to accommodate them. The kiosk giant recently signed a lease that more than doubled its headquarters space in the Oakbrook Terrace Tower in the Chicago suburbs. Redbox’s newly expanded HQ will occupy nearly 137,000 square feet, covering five full floors of the tower as well as space in the adjacent annex.
According to a Redbox spokesman contacted by Chicago Business, the massive office space expansion is intended “to accommodate current business needs and projected growth [of the company]”. Analyst Larry Berlin of Chicago-based First Analysis Securities Corp. predicts that Redbox revenue will rise to more than $1.1 billion this year, up 45% to 50% from 2009. Mr. Berlin is also predicting that about three-fourths of Redbox parent Coinstar’s 2010 revenue will come from the DVD rental business.
Redbox obviously seems confident that it will either prevail or be largely unaffected by its struggles with the Hollywood Three, along with the decline of the DVD format and the rise of Netflix and VOD. Do you think Redbox will have any trouble filling its enormous new headquarters space, or is this just the beginning of Redbox’s expansion? Leave us your opinion in the comments.
[via Chicago Business]