Showing posts with label Redbox. Show all posts
Showing posts with label Redbox. Show all posts

Redbox parent Coinstar peaked

Redbox parent Coinstar peaked
There's a idea that many new technology become outdated about 18 months after they're presented -- as soon as the modified, next-generation gadgets are combined out. That idea can certainly be used to computer systems -- and perhaps to video-rental distribution systems as well.

Coinstar (CSTR) declared lower-than-expected income in its fourth-quarter income review on Saturday, with earnings for the 1 / 4 down 27%. It also provided a flat prediction for the current 1 / 4.

The mother or father company of the computerized coin-counting devices also operates RedBox, a self-service kiosk that leases out films and film gaming at more than 42,000 places across the U.S. and North america.

Some experts reduced the stock on Saturday, and it dropped nearly 7% in trading to close at $48.47. Part of the issue for Coinstar seems to be the new methods of obtaining video clips.

Remember how Smash hit damaged your local, mom-and-pop film store? Nearly all those video-rental shops washed out away with the release of film loading and DVDs available both though the mail and by computerized kiosk.

In fact, the brick-and-mortar film lease market dropped nearly 14% between 2007 and last year, according to market experts at IBISWorld, as on the internet technology changed in-store leases.

And now, with Smash hit on the internet (NFLX) as the prominent player in the on the internet movie-rental scenery, opponents like Coinstar are looking to take a chew out of that growing market.

Coinstar is releasing its own video-streaming collaboration with Verizon (VZ) called "Redbox Immediate by Verizon." As Mashable’s Christina Warren notices, "Redbox Immediate has a long way to go before it can contest with companies Smash hit on the internet and Amazon (AMZN). Still, I'm not willing to create the assistance off just yet.”

If the assistance takes off, "and Redbox statements that tens of many people have asked for access to the try out -- this tale will turn itself around," says John Aristotle Munarriz in The Motley Deceive. But he also considers Smash hit on the internet might have too much of a jump start for Coinstar to capture up.
READ MORE - Redbox parent Coinstar peaked