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Calling Netflix’s recent traffic growth “off the charts,” a Citi research report citing comScore data has revealed that the number of visitors to Netflix’s website was up 46% last month compared to June of ’09. Citi analyst Mark Mahaney said that Netflix’s numbers represent the fastest year-over-year growth that he’s seen in more than half a decade.

The vast increase in site traffic comes at a time when Netflix’s streaming service is growing by leaps and bounds, aided by widespread availability on dozens of compatible devices. Netflix has also seen impressive subscriber growth this year, adding 1.7 million in the first quarter alone.

Can Netflix keep up its momentum, especially in the face of potential price hikes and other obstacles? As Blockbuster wheezes out its last, how much of a windfall will the company reap along with Redbox? Tell us what you think in the comments.

(via NewTeeVee)

32 Responses to “Report: Netflix Web Traffic Growth ‘Off the Charts’”

  1. Visitor [Join Now]
    Firstlawofnature [visitor]

    That weird looking fat dude on the vbg site says netflix is starting to decline so he would probably argue like JS that netflix is about to hit a brick wall even if the numbers and facts say otherwise.

    And since you ignored me JS I ask again for you to substantiate this claim with a link. You are flat out lying on this one.

    ‘Even FLON admitted that his numbers were incorrect when taken in context with the final results.’

    • Visitor [Join Now]
      The Situation [visitor]

      FLON, you are absolutely correct. The problem is that you spend too much time caring about what John Small thinks.

      I think I figured out the biggest puzzle. The deal with John Small. A lonely man, who makes things up in his head, and lives on an island. He is the basis for Leonardo Dicaprio’s character in Shutter Island!!!!! I win!!!!!

      • Visitor [Join Now]
        firstlawofnature [visitor]

        I detest intentional deception. This is a prime example…

        ‘Even FLON admitted that his numbers were incorrect when taken in context with the final results.’

    • Visitor [Join Now]
      John Small [visitor]

      Just search around for when you were jabbering about EBITDA and I challenged you to make the leap from your numbers to the final quarterly results and you admitted you couldn’t.

    • Visitor [Join Now]
      firstlawofnature [visitor]

      You are so disingenuous. Another claim you refuse to back up. What else is new.

      • Visitor [Join Now]
        John Small [visitor]

        Feel free to make the leap now if you wish. You know you can’t so…

      • Visitor [Join Now]
        firstlawofnature [visitor]

        Saved a link to this because I figured you would lie at one point. Please show me where I admit the numbers from this post are incorrect. Your inability to calculate your numbers are noted once again.

        Firstlawofnature [visitor]

        May 7, 2010 at 9:15 pm

        ‘As long as Coinstar is not playing games with their YOY deprec. calcs, you are correct that they are making a profit on a per machine basis.’

        Well it took a week and it was painful but you did admit the truth finally. The kiosks do in fact make a profit.

        ‘That profit has fallen from last year. You know this. You don’t want to admit it but you do.’

        ‘Seriously FLON, can you find a calculation that doesn’t show them to be sliding?’

        Your flip-flop is duly noted. Instead of proving your point you are slithering away once again. Does that sound like a truth teller to you?

        Here is the link you need to figure it all out. It’s really quite simple.

        http://coinstar.com/us/Webdocs/A5-1-19

        Go to the investor update page 6 & 7.

        For Q1 2010 take the DVD segment operating profit of $44,834,000 and subtract out the DVD segment depreciation of $22,171,000 to get redbox’s segment operating income of $22,663,000. This is operating income after depreciation expense. Now divide that by the average number of kiosks for the period of 23,600 and that comes out to approximately $960 in operating profit per kiosk for Q1 2010.

        For Q1 2009 take the DVD segment operating profit of $20,830,000 and subtract out the DVD segment depreciation of $13,045,000 to get redbox’s segment operating income of $7,785,000. Again this is operating income after depreciation expense. Now divide that by the average number of kiosks for the period of 14,550 and that comes out to approximately $535 in operating profit per kiosk fro Q1 2009.

        At this point you can see that redbox’s operating profit per kiosk in Q1 2010 actually improved rather substantially over the prior year’s results. This is mostly a function of the average age of the kiosks stretching out. Redbox kiosks ramp up revenue over a multi-year period so the impact from aging is quite dramatic right now.

        Unless the company is reporting fraudulant numbers there really is no other conclusion.

        As I said before low margins are fine. Video stores have high gross margins but tons of overhead. Redbox has low gross margins but little overhead. One can survive on very little business, while the other cannot. This is why video stores are closing and kiosks keep opening.

  2. Visitor [Join Now]
    firstlawofnature [visitor]

    Of course it’s not because it doesn’t exist. You won’t dig up the post where I admited my numbers were wrong and you refuse to calculate your own profit per kiosk numbers. You are consistent. I’ll give you that.

    From VBG web site…’There are times when everyone needs to step back, take a breath and look at the whole picture to decide what is fact and what is fiction.’

    You should take this guy’s advice. I think he should paint himself blue this year and wear a speedo suit for the tanning seminar. Now that would be funny.

    • Visitor [Join Now]
      John Small [visitor]

      Again, feel free to make the leap from your “magic” numbers to the real and final numbers reported by Coinstar.

      Show everyone how your $1000 per kiosk drop to under $100 when all the costs and expenses are taken into account.

    • Visitor [Join Now]
      firstlawofnature [visitor]

      Show me how my numbers are magic. What numbers do you consider ‘real’ and ‘final’ in coinstar’s release?

      ’There are times when everyone needs to step back, take a breath and look at the whole picture to decide what is fact and what is fiction.’

      • Visitor [Join Now]
        John Small [visitor]

        You like to use EBITDA as your measuring stick. It has been pointed out to you repeatedly and you agreed that it does not show the complete story and there is no way to connect the dots between the EBITDA reported and the final results.

        If that does not make you suspicious then I have some land in Florida to sell you.

      • Visitor [Join Now]
        firstlawofnature [visitor]

        ‘For Q1 2010 take the DVD segment operating profit of $44,834,000 and subtract out the DVD segment depreciation of $22,171,000 to get redbox’s segment operating income of $22,663,000. This is operating income after depreciation expense.’

        I did not use EBITDA as you can see.

        ‘there is no way to connect the dots between the EBITDA reported and the final results.’

        Not true. One can add up the after depreciation segment results and compare that to overall operating income. The small difference would be overhead that is not attributable to any one segment. Of course there are lots of items that have nothing to do with redbox like interest expense and one-time charges from the coin side that bridge the results between operating income and net income.

        Again what numbers do you consider ‘real’ and ‘final’ in coinstar’s release?

  3. Visitor [Join Now]
    Joe Schmuck [visitor]

    John S.,

    A little over 2 years ago, before the financial meltdown in the fall of 2008, Coinstar was implying that is was going break off Redbox into a separate company and do an initial stock offering.

    Since then, I have not heard anything else about this. Is it possible or probable, that Coinstar has decided that it’s easier to hide the financials of the Redbox division in the overall financials of Coinstar, rather than have Redbox as a separate company, where it would be a lot more difficult to do.

    • Visitor [Join Now]
      John Small [visitor]

      I would say that this is extremely likely. Having said that, Coinstar continues to shed most of their extraneous business so they are really getting down to Redbox and the Coinstar machines. We will see in a couple of weeks if one of those two is dragging down the final results. Both show lovely EBITDA numbers and yet Coinstar can barely make a profit.

      If it looks like a fish and smell like a fish…

    • Visitor [Join Now]
      firstlawofnature [visitor]

      On what basis would you say this is extremely likely?

      JS this fat dude from the vbg site thinks redbox is here to stay. Why don’t you feel the same way?

      I don’t believe standing outside late at night in the dark in a parking lot or on a rainy, windy cold day is convenient, yet customers go there. Why? Because of the price. So we can conclude, at least in these economic times, price does supersede convenience. Not for everyone, but for a significant segment of consumers this is the case.

      • Visitor [Join Now]
        Tee [visitor]

        Flon, please help me understand the numbers you are using. According to your calculations they are using approx $940 per machine of depreciation per quarter? If they put on average $13,000 PER Qr. of inventory into each machine that means they are only amortizing 7% depreciation give or take. So they are claiming that their inventory after the quarter of use (rentals) is still worth 93% of what they paid for it? Sounds like they are using the questionable accounting principles if my assumptions are correct. My guess is more like 50% depreciation is more accurate which puts them at a whopping loss per machine. Just my .02!

        • Visitor [Join Now]
          firstlawofnature [visitor]

          Just want to make sure I understand what you are saying.

          So @ $13k per quarter you are assuming redbox is spending over $50k a year per kiosk on DVDs right or over $1 billion a year in total?

          • Visitor [Join Now]
            Tee [visitor]

            Flon, honestly I do not know what their revenues are or how much they put in each machine. My best guess is that they average between 2-4k per month per machine (purchases), I believe the going rate is 33% of revenue for inventory. I was hoping you had access to how much they spent per machine on inventory. My theory would be that if they pay let’s say $16 (cost + use tax etc..) per movie and after 3 months they can sell for $7 (and that’s a stretch when you factor in damages, unreturned movies, and declined credit cards) than they should really be using a figure more in the area of 50% for depreciation. If they used that true number for depreciation they would not be showing a profit.

          • Visitor [Join Now]
            Firstlawofnature [visitor]

            You were assuming far too much in DVD purchases originally. Maybe more like $20 to $25k per year. The depreciation of DVDs runs through the direct operating expense line (similar to cost of goods sold) so it is not in the depreciation expense of $22 million I mentioned above. Since most of the movies are worthless in a year all the depreciation gets washed out through the direct operating expense line in a year or less. You are trying to apply kiosk depreciation to DVDs which is incorrect.

            Does that make sense to you?

          • Visitor [Join Now]
            Firstlawofnature [visitor]

            Tee – be sure to let me know if this makes sense to you now.

  4. Visitor [Join Now]
    really [visitor]

    FLON once again a whole page reduced to i’m right your wrong, no i am, no me, prove your numbers, no you prove your numbers, your a liar, no you are a liar, My kids sound more like adults and they don’t even fight like this where nothing ever gets accomplished and nobody really cares anyway! Especially with complete strangers. you would think after so many months of saying the same old tired ass comments you would find something better to do with your time! i wonder what need is getting met by this your trying to prove that there is noway a corporation would try and fudge the numbers to investors or potential investors right good luck selling that. perhaps lonliness? is your mom perhaps really your dad hunh flon? are you really that lonely that you find comfort in the cat and mouse with john small? do you need a friend. your like the kid who punches the girl on the playground because he likes her. Are you carrying a torch for js? Is this how you play slap and tickle?

    • Visitor [Join Now]
      The Situation [visitor]

      I’m not familiar with slap and tickle but it sounds interesting. That was my favorite part of that entire rant.

      I’m just curious why he gave 100% of the attack to flon and none to john smallest…..

  5. Visitor [Join Now]
    firstlawofnature [visitor]

    ‘i wonder what need is getting met by this your trying to prove that there is noway a corporation would try and fudge the numbers to investors or potential investors right good luck selling that’

    Why would I try and prove that there is no way to fudge numbers? Numbers are fudgable. I merely took the public numbers and refuted JS’s point that the kiosks were declining/barely profitable. I assume that like most companies in America coinstar is releasing accurate financial estimates. It’s possible Seattle is a hot bed of frauds and that coinstar, amazon, starbucks and/or expedia report bad numbers. Unlikely but certainly possible.

    As I said I detest intentional deception.

    • Visitor [Join Now]
      gene [visitor]

      there now you’ve said it again for the hundredth day in a row over and over again. Now give it a rest.

    • Visitor [Join Now]
      John Small [visitor]

      You refuted nothing because you used incomplete numbers. When Coinstar completely reports the costs for Redbox then we’ll be able to see things clearly. They choose not to do so which is suspicious in the least.

      BTW, Redbox continues to stealthily raise prices across the country. Looks like they know something after all.

      • Visitor [Join Now]
        The Situation [visitor]

        As opposed to not using number at all like you John Small. You are quite the hippocrite aren’t you?

        Keep ignoring my posts, we all know its because I’m not claiming to be smarter or better than everyone, just you John.

        • Visitor [Join Now]
          Firstlawofnature [visitor]

          That was funny. For fun go to the video buyers guide site to read more ramblings that are in-line with JS’s thinking. It’s hysterical.

  6. Visitor [Join Now]
    mjbxx [visitor]

    John Small you are an idiot!

  7. Member [Join Now]
    tlochner

    im sure redbox is making very liitle $$$. but they are giving away very few codes these days and have even taken back the code BREAKROOM which used to work everywhere once per credit card. and now doesnt work at all. this code was started when redbox started operation years ago. i guess they are hurting for
    every $$$.
    red sucks … i no longer rent from their boxes. bb express rules!
    no delays, free movies, better selection of quality movies, bUT FREE IS THE TICKET!!!!!
    TONY