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Redbox Q1 sales revenue down 5 percent YoY

05-06-2013, 04:04 PM
Per the DEG Report. First time we've seen a YoY decline in Redbox rental revenue, signaling that the last growth area of OD rental has peaked.

B&M rental was down only 12%, not much more than Redbox.


05-06-2013, 04:30 PM
Is there anything in particular which is eating into Redbox's revenue?

(ie. Besides apathy towards physical rental).

Or is it more like a perfect storm?

05-06-2013, 04:42 PM
Is there anything in particular which is eating into Redbox's revenue?


Doug k

05-06-2013, 04:43 PM
Just mostly part of an ongoing trend. Redbox YoY growth has been falling the last few years. It was in the single digits in Q4 2012 and is now in negative growth. Main factors are kiosk saturation and competition from streaming.

05-06-2013, 05:03 PM
At the present time, I don't know anyone personally who still rents out dvd/bluray, whether at redbox style vending machines or one of the few indie rental places still left in town.

Even at the nearby public library, one of the librarians there mentioned that most of the dvds on the library shelves are collecting dust. Very few people even bother borrowing them. Though they haven't gotten rid of the dvd section yet.

Amongst the hardcore movie buff types and couch potatoes I know offline, hardly any of them purchase any new dvds/blurays these days. The movie buffs typically either go to the movie theater and/or they just watch it VOD on the cable service. (They don't even bother using Netflix's dvd service anymore).

Of the hardcore couch potatoes I know offline, they either stockpile episodes on the dvr and/or they use a flat fee streaming service like Netflix, amazon, etc ... They seem to find it really annoying to deal with actual physical dvd discs. They would rather just press a few buttons on the remote control, without having to get off the couch.