CSTR smashed Q3 Earnings projections. Then stock price fell roughly 15% due to market’s thinking people won’t pay $0.20 more to rent a DVD. Although it is a 20% increase in price; the increase is relatively small in terms of cash outlay to the consumer. I believe the market got this one wrong. Redbox will not lose customers over 20 cents. Stock price will be up over the next 3 months or so.
Saturday, 29 October 2011
Talk about the future of distribution of movie contents and all you hear these days is about finding workable commercial models for streaming to a variety of computer and hand-held devices. DVD-rentals seem to be “oh so yesterday.” Both the sale and rental of DVDs continue their steady decline. U.S DVD sales [...]
By Tim Carmody October 28, 2011 | 9:56 am
Warner Bros. wants the 28-day window between sales and rentals of new DVDs and Blu-ray discs it’s negotiated with Netflix and Redbox to be even longer — and it wants big retail chains like Blockbuster to submit to the [...]
ANALYSIS AIR DATE: Oct. 27, 2011
Transcript
MARGARET WARNER: Now, Netflix stumbles badly, and its competitors see an opportunity in a fast-changing media and entertainment landscape.
In recent years, Netflix’s familiar red envelopes delivering DVDs by mail symbolized a company on the rise with an ever-expanding customer base. But late Monday, Netflix announced that it [...]
Watch out, Netflix! You may have wiped out almost all the Blockbusters from El Lay to La Canada, but there are still PLENTY of Redboxes…and more are coming!
According to Piper Jaffray analyst Michael J. Olson, Coinstar’s Redbox movie rental kiosk are reaping the benefits of Netflix totally screwing up with their formerly loyal customers.
Olson says [...]
Samimi is unveiling a kiosk membership program as part of a new pricing model to “allow consumers to have a physical DVD plan like Netflix, but enjoy the convenience of being able to come and get a DVD any time that they want,” he said.
September 15, 2011, 1:57 PM
Shares of Netflix NFLX got pinched Thursday after the company lowered its subscriber forecast for the third quarter, and at least some investors seem to be thinking that the Redbox DVD kiosk service will scoop up some additional share.
That was evident as shares of Coinstar CSTR jumped nearly 8% to $48.65 [...]
September 19, 2011
Accurate Prediction
In February and again in May I predicted that Netflix (NFLX) was setting up for disaster. I had been following the Netflix story for quite a while and saw way too many reasons Netflix looked like an extremely dangerous investment:
Valuations were extreme, signaling Netflix was priced for perfection.
It no longer had [...]
By David B. Wilkerson
CHICAGO (MarketWatch) — Among 1,000 Netflix NFLX -9.01% subscribers responding to a survey, some 30% are going to cancel their service or are seriously considering it, media research firm Frank N. Magid Associates Inc. said Tuesday. The firm was also the latest to suggest that Redbox, the $1 movie rental service [...]
Netflix is huge, but we had no idea just how huge it was until we saw this new infographic from GigaOM. Netflix By The Numbers illustrates just how big Netflix has become, in terms of business, bandwidth, devices and catalog.
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