17 Oct, 2011
With Warner Home Video likely to lengthen the 28-day embargo to 60 days for kiosks such as Redbox and Blockbuster Express beginning next month, independent kiosk operators welcome the news.
“Bring it on,” said Dan Kearney, who owns and operates two rental kiosks under the DBA “EnjoyNewReleases” with his wife, Mary, in Milford and [...]
“In our opinion, this price would still be more attractive than other rental options and could actually drive a margin boost to Redbox since the price increase would benefit all transactions, while the debit fee hike would only impact about half of all transactions,” Wold wrote in a Sept. 21 note.
“It’s nice to see that positive response,” the company’s video game VP Joel Resnik tells Gamasutra, following the company’s announcement of 4 million game rentals in 2011.
By NAT LEVY
Bellevue Reporter Staff Writer
Sep 19 2011
Bellevue-based Coinstar, the parent company of the popular Red Box movie kiosks, has been named to Fortune Magazine’s top 100 fastest growing companies.
Coinstar was ranked 22nd overall by Fortune, and was the fastest growing company in the state according to revenue. Coinstar saw a three-year earnings growth [...]
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 [...]
Shares of coin-counting machines and DVD rental kiosk maker Coinstar (CSTR) are down $1.37, or 3%, at $42.53, double the market’s decline, despite an upgrade today by JP Morgan’s Paul Coster from Underweight to Neutral, based on valuation considerations.
Action to Take –> The DVD business will eventually mature, though not before a Netflix-inspired spurt in the next 12 months. In coming years, new kiosks ideas should augment those cash-flow rich mature businesses of coin-counting and DVD rentals. Analysts have been raising their estimates, even as the share price continues to fall. At just 12 times next year’s projected EPS, shares discount Coinstar’s still-robust growth that lies ahead.
Only days after reporting $363.9 million in quarterly revenue and $79 million in operating income, up 34% and 99% year-over-year, respectively, DVD kiosk company Redbox has released some more impressive figures. With more than 27,000 kiosks spread across the country, the Coinstar-owned service is now seeing an average of 55 million monthly rentals and up to 40 rentals per second.
Revenue for the DVD rental kiosk operator rose 33.8 percent for the latest period to nearly $364 million, at the lower end of company projections, as management says it is looking to attract Netflix users upset with a recent price hike.
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