While its disc rental operations remain the company’s bread and butter, Redbox parent Outerwall also has a stake in the Redbox Instant streaming service. Thus far, Redbox Instant has not been a hit with consumers, and some industry analysts are advising that Outerwall ditch the service entirely.
Analyst Michael Pachter said the following about the service:
“[We’re] pessimistic that Redbox Instant will ever generate meaningful profits . . . In our view, Outerwall should withdraw from the venture as soon as it is permitted.”
B. Riley & Co. analyst Eric Wold believes, too, that Outerwall should focus on maximizing its kiosk revenue. Said Wold:
“We continue to believe this needs to be accomplished without increasing rental prices given the price inelasticity seen by management when testing prices above $1.20 a night,”
What do you think, Insiders? Should Redbox get out of the streaming business?
[via Home Media Magazine]
One wonders how many redboxers even knew redbox WAS in the streaming business! ;)
Redbox should definitely end its interest in Redbox Instant, however, maybe there is incentive for them not to. Verizon owns the company, Redbox is just a partial owner. Maybe Redbox is getting discounted wireless deals or something in exchange for their name on it? Not sure. I haven’t seen any information on the deal.
Personally I think a Redbox & Amazon partnership makes more sense. Make it so that you can buy the Amazon Prime membership right at the kiosk. Bring in the Coin counting kiosks as advertising for Amazon as well. They are both based in Seattle which would be good for business too. Make things easier.
Short answer yes.
Just a thought.. RedBox could put Two Box’s at each place…. One for DVD’S And One for Blue-Ray’s.
Drop the Streaming deal. And Just go with the DVD’S.
And have 8 DVD’S for $.8.00 a month.. Are 8 Blue-Rays for $10.00 a Month.
But as others have said.. They are in this with Verizon. And Verizon has a big hand in it. Even if they lose every month. Verizon has the buck’s to burn. And can use this as a tax wright off. And other things. Verizon is not losing anything on this at all. Verizon is keeping this going. They have a reason.. And its all about MONEY!
What the !#%$& is a tax “wright ” off?
Take Business Tax Accounting 110-120 up. In a U C Collage .
You really think Verizon is losing big Money here. Ha!..
They get all kinds of Tax wright off’s. And Loss wright off’s.
Outerwall does also.
The Big Co’s get so much tax wright off’s its not funny..
The little guy. Ha!
If they were losing all that much. They would shut it down and fast.
But with all the wright off’s.
They will keep it going…
Take English 101, danobunghole. The correct term is “write-off”.
I can do this all day long.
P.S. – What is a U C collage? Is it anything like a college?
Does this look familiar danobunghole. It was a comment by you on an Inside Business article posted today, titled ” 71 Movies Are About to Disappear From Netflix”. There’s no mistaking who wrote this comment, as is the same BS that you have been posting here every day, over and over and over.
M 5 hours ago 6 4 Keep in mind some of the Movies are from Warner Bros. And They will not be renewing anything with NetFlix..When it comes due. . As they have there own Online deal now. $9.99 a month.
I have NetFlix in the mail. Three out at a time, the Online deal. Warner Bros online and RedBox online with (4) DVD’S at the Box.. No Cable TV.. Cut that out years back. And I hove more to watch then I ever need. All for under $40.00 a month. + My High speed net. $70.00 a month.
$110.00 a month and still put about $50.00 a month in my pocket from not having the B.S Cable TV.. Don’t miss it at all.