More Blu-ray In The Immediate Future For Redbox

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

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.

See what people are saying about this story in our forums area, or check out other recent discussions.

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