More Blu-ray In The Immediate Future For Redbox

Posted Thu Aug 6, 2009 at 01:00 PM PDT by

Record profits spur expansion for the increasingly popular rental service.

In 2008, Coinstar made $73 million in profit from Redbox kiosks. In the first half of 2009, they’ve made $58 million. That’s around eighty percent of the money in just half the time, and it leaves Redbox execs wanting only one thing: MORE!

In a conference call with investors on August 4th, Redbox chairman Paul Davis stated that both video games and Blu-ray discs were in the immediate future for Redbox. Said Davis, “We plan to extend the current product offering by testing video games, Blu-ray, and a broader title base.”

He also spoke on the recent deal with Sony Pictures, which sees Redbox stocking about 20% Sony DVDs and giving up reselling rights, meaning that when the discs are done being rented, they will be destroyed. “We wouldn’t do deals that we didn’t believe were margin/dollar positive at the end of the day.”

Those interested can read the entire transcript of the call here.

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Tags: Redbox, High-Def Rentals (all tags)