Biz: Company that owns Redbox machines said sales are terrible/stock is crashing

[playahaitian]

The company that owns those DVD-vending machines said sales are terrible, and now its stock is crashing

Outerwall is having a tough time getting people to rent DVDs.

Shares of the supplier of movie and game-rental kiosks plunged nearly 30% in after-hours trading on Monday after it lowered its forecast for full-year revenues.

The company said its fourth-quarter profitability would be dented by its increased spending on marketing and additional content to persuade customers to return to "normal renting patterns".

With the abundance and affordability of content-streaming services like Netflix and PlayStation Now, demand for services that rent physical CDs has plummeted.

Outerwall said in a statement, "While Redbox has driven improvements in both unique customers and total rentals during the first two months of the fourth quarter relative to the third quarter, the business has not met the company's performance expectations and continues to remain challenged by the historically low box office during the third quarter, which was the worst theatrical box office in Redbox kiosks in four years."

Outerwall said it expects Redbox's 2015 revenues to come in between $1.750 billion and $1.765 billion, versus the prior range of $1.790 billion to $1.815 billion.

It sees diluted earnings per share from continuing operations at between $7.65 and $8.15, versus $8.82 to $9.52 previously guided.

It further announced that Redbox president Mark Horak is leaving the company, and Outerwall CEO Erik Prusch will fill the role in the interim.

Outerwall shares are down about 23% year-to-date. Here's a chart showing the drop in after-hours trading:

 

[KingTaharqa]

It doesnt help that movie offerings have been real shitty lately

 

[tallblacknyc]

better start putting out more kids movie and putting them shits where a lot of mothers and kids can see them

 

[JamesATL]

whats a DVD?

 

[King Natty]

I've never used these, but I haven't used a DVD in quite a while either

 

[Skinnie Talls]

It doesnt help that movie offerings have been real shitty lately

That's pretty much it right there. Plus Redbox releases are really late too. Their new releases be like Southpaw and shit like that.

 

[dawilleyone]

yeah, but they had a niche and made some money, but their streaming options never materialized. I think the movie companies and stores like Best buy, Target and Walmart also made it harder for them to get the new releases when they first came out. You had to wait for a week or so to get them on Redbox so the big box stores could make their money of DVD sales.

They will always be remembered as the company that basically put Blockbuster/Hollywood Video out of business though

 

[Drayonis]

I bet it has more to do with this than the Quality of movies being released. People are getting hip.

 

[Mrfreddygoodbud]

who didnt see this writng on the wall.....

they lucky public wi fi aint common place..

then they would really be fucked..

but I agree with what tallblack said,

they need to produce and market their own kiddie shows and

family friendly shows..

or else they going to see those numbers drop every year...

 

[Skinnie Talls]

They will always be remembered as the company that basically put Blockbuster/Hollywood Video out of business though

They are the front man for " the company that basically put Blockbuster/Hollywood Video out of business". Everybody knows street bootleggers/piracy put video stores on they ass. How can you compete with an exclusive/preshipped DVD delivery service with a store full of old releases?

 

[XXXplosive]

I bet it has more to do with this than the Quality of movies being released. People are getting hip.

Nah, most people still ain't hip to Kodi, even on this board.
The mainstream still has issues/paranoia about streaming protected content.
Cord-cutting and streaming in general like Netflix and other LEGIT sources is growing.

I've never rented a DVD from Redbox in my life.
Funny, Redbox was the one that put Blockbuster and the like out of business.
Now, Netflix will be the one to put Redbox out of business.
Physical media will pretty much be dead in a few years.

 

[playahaitian]

Nah, most people still ain't hip to Kodi, even on this board.
The mainstream still has issues/paranoia about streaming protected content.
Cord-cutting and streaming in general like Netflix and other LEGIT sources is growing.

I've never rented a DVD from Redbox in my life.
Funny, Redbox was the one that put Blockbuster and the like out of business.
Now, Netflix will be the one to put Redbox out of business.
Physical media will pretty much be dead in a few years.

great point

 

[playahaitian]

Nah, most people still ain't hip to Kodi, even on this board.
The mainstream still has issues/paranoia about streaming protected content.
Cord-cutting and streaming in general like Netflix and other LEGIT sources is growing.

I've never rented a DVD from Redbox in my life.
Funny, Redbox was the one that put Blockbuster and the like out of business.
Now, Netflix will be the one to put Redbox out of business.
Physical media will pretty much be dead in a few years.

i don't know if I agree with this.

they have said that for years but lps to 8 tracks to cassettes to CDs to DVDs to Bl Ray...

I think there will always be SOMETHING.

 

[XXXplosive]

i don't know if I agree with this.

they have said that for years but lps to 8 tracks to cassettes to CDs to DVDs to Bl Ray...

I think there will always be SOMETHING.

No, it's different now.
There was always a new form of physical media to replace the previous type of physical media.
Streaming content is becoming more mainstream now.
The new physical media is/will be UHD Blu-ray, but it will never be mainstream.
While there will still be physical media around, it won't be the dominant form of media like in the past.

 

[playahaitian]

No, it's different now.
There was always a new form of physical media to replace the previous type of physical media.
Streaming content is becoming more mainstream now.
The new physical media is/will be UHD Blu-ray, but it will never be mainstream.
While there will still be physical media around, it won't be the dominant form of media like in the past.

understood

 

[gdatruth]

Kudos to netflix. They this coming and went all in on original programming/streaming

 

[PeerlessMack]

Physical media (blu-ray, dvd, cd) is on life support right now. It's all about streaming.

There will be a big shake up in the entertainment also. I say in the next 10 years TV channels will start breaking away from cable companies and offer there own streaming app, program, or site.

Times are changing. Adapt or get left behind.

 

[An RnB Thug]

They needed to reinvent themselves
DVD's are DEAD Technology

 

[An RnB Thug]

Kudos to netflix. They this coming and went all in on original programming/streaming

Whoever bought stock the day after they made that announcement is a genius.
Shit DROPPED to 7 Bucks a share today $127

 

[Non-StopJFK2TAB]

Kudos to netflix. They this coming and went all in on original programming/streaming

The guys with content will always be king.

 

[Non-StopJFK2TAB]

Physical media (blu-ray, dvd, cd) is on life support right now. It's all about streaming.

There will be a big shake up in the entertainment also. I say in the next 10 years TV channels will start breaking away from cable companies and offer there own streaming app, program, or site.

Times are changing. Adapt or get left behind.

I have Comcast cable. I like Netflix, I really do, but sometimes they have movies and sometimes they don't. They still don't have Seinfeld. Anyway, i love Comcast, but they raised my rate and I had to give them a call. They're crediting my account $20 and are giving me HBO for free. I'm coming out ahead.

 

[Amajorfucup]

Redbox ended Blockbuster....and quietly ended Netflix mailing/renting service... Then made the mistake of only going halfway in and never getting their streaming service together. They made a shitload of money. They can survive in rural areas and as a niche provider in densely populated areas.

 

[XXXplosive]

Physical media (blu-ray, dvd, cd) is on life support right now. It's all about streaming.

There will be a big shake up in the entertainment also. I say in the next 10 years TV channels will start breaking away from cable companies and offer there own streaming app, program, or site.

Times are changing. Adapt or get left behind.

Most networks already have a dedicated app for live streaming or on-demand viewing.
It would be nothing for them to exclusively offer their content directly via their app and bypass the cable/satellite companies altogether.
Sling TV was just a start in terms of offering a la carte programming and not having to pay for a full cable TV package.

 

[mexico]

It doesnt help that movie offerings have been real shitty lately

This and this can't be overlooked...

Outerwall said in a statement, "While Redbox has driven improvements in both unique customers and total rentals during the first two months of the fourth quarter relative to the third quarter, the business has not met the company's performance expectations and continues to remain challenged by the historically low box office during the third quarter, which was the worst theatrical box office in Redbox kiosks in four years."

The thing is only as good as the content, no matter how cheap it is and studios are real stingy with new releases. If they could ever get hold of a distribution deal a studio would release something like Jurassic World or Marvel content to Redbox in the same window as it releases to retail then that would breathe new life into them, especially considering how cheap they are.

But good luck with that.

 

[Lehigh]

Blu ray only

 

[cnc]

Spend gas, time, effort and run the risk of getting robbed to go rent and/or return a DVD that hundreds, maybe thousands, of hands have been on....or;

Walk from kitchen to couch. Turn on TV, load application, pick movie, watch at your leisure.

Seems fairly simple enough to figure out to me.

 

[mexico]

Spend gas, time, effort and run the risk of getting robbed to go rent and/or return a DVD that hundreds, maybe thousands, of hands have been on....or;

Walk from kitchen to couch. Turn on TV, load application, pick movie, watch at your leisure.

Seems fairly simple enough to figure out to me.

Can't dispute the part about the germs, ain't no effort involved in finding a redbox. They're ubiquitous as fuck. Every grocery store I go to has one. I just grab one on my way out if the mood strikes me and you can drop 'em off anywhere.

Now if you don't shop often or there's not a convenience store a couple minutes away then yeah...

 

[Mr. Del]

Netflix, hulu and the like are killing them. Why run outside in the cold when I can stream online?

 

[EPDC]

Never used one

 

[King Natty]

I bet it has more to do with this than the Quality of movies being released. People are getting hip.

Just installed this on my firestick

 

[RUDY RAYYY MO]

I use it mainly for games,I'd rather rent test the game out for a few dollars than buy for 60 and its wack

 

[4 Dimensional]

Who the fuck rents DVDs now of days? Either you buy it, download or stream it. This was an inevitable outcome. They should have seen this a long time ago.

 

[Darrkman]

Nah, most people still ain't hip to Kodi, even on this board.
The mainstream still has issues/paranoia about streaming protected content.
Cord-cutting and streaming in general like Netflix and other LEGIT sources is growing.

I've never rented a DVD from Redbox in my life.
Funny, Redbox was the one that put Blockbuster and the like out of business.
Now, Netflix will be the one to put Redbox out of business.
Physical media will pretty much be dead in a few years.

You're right. With how common streaming media has become plus the fact the quality is as good as a blu ray you tend to not have any need to go to a Redbox. I was a HUGE redbox user until I got my Chromecast. Now I can't tell you the last time I used a redbox.

The Smart TV killed Redbox.

 

[World B Free]

Duh

 

[CurtDawg]

I think Redbox will only work in rural areas
Because you still have some people in rural areas with shitty internet
People with less than 10MB DSL, or Satellite internet, or Verizon/AT&T cell internet, limited to a certain number of GB per month
For them it makes sense to grab a movie from Redbox, instead of running up their monthly internet allowance

Plus with Ultra High Def movie coming out soon, most people don't have the bandwidth speed to download those huge movies
You need at least 25mb per sec speed, or else it's going to buffer
Redbox needs to double down on all the grocery stores & etc, in rural areas