Redbox Records Record Profits – "Too Soon to Tell" Effect of Delayed Releases

Posted Mon May 3, 2010 at 09:00 AM PDT by Mike Attebery

It's been a good couple of months for Coinstar. They've got huge profits, agreements with the major studios, and Blu-rays on the way to their Redbox kiosks.

Redbox kiosks have been doing great, which means Coinstar, the company that owns them, is doing great too. They made 6.4 million dollars in profit in the last three months; triple what they made last year.

That 28 day window for releases hasn't hit yet though. "We’re very new into this, because we’re only a few days into this new window," says Coinstar CEO Paul Davis. But it may even out based on their newly increase access. "One of the things that happened with the workaround is we didn’t get the quantities we wanted to stock in our machine, " said Davis.

It looks like Blu-ray is finally on the way, but it's going to start in the markets where Blu-ray disc sales are strongest. "We’ll try our best to match where the market is," said Davis, adding that though a price still isn't set in stone, you're not going to see dollar-a-day Blu-rays. "because we’re paying more for it, obviously."

Source: Home Media Magazine

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Tags: Industry Trends, Redbox (all tags)