Since the advent of the VCR, movie rentals have been big business. However, as technology has changed the way that people accessed those rentals has evolved. Now it looks like we may be on the verge of another major change in the industry.
Source: www.cinemablend.com
Redbox, the kiosk-based DVD rental unit of Outerwall, reported a 17% decline in revenue for the fourth quarter of 2015, as movie rentals dropped 24% year over year. Outerwall said Redbox’s revenue for the quarter was $407 million, down from $490.7 million in the fourth quarter of 2014.
Source: variety.com
The company operated 40,480 Redbox kiosks at the end of 2015, removing 1,800 units (a decline of 4.2%) over the course of the year. In 2016, Outerwall expects to remove 2,000 more Redbox vending machines.
Overall, Outerwall reported $527.2 million in consolidated revenue for the fourth quarter of 2015, a 12% decline, and net income of $17 million ($1.00 per share), down 61% from the year-earlier period. The results beat Wall Street estimates of $513 million in revenue and earnings per share of 63 cents; those were based on Outerwall’s lowered guidance for full-year 2015 earnings and EPS, which it issued in early December.