Redbox Hurt By Lousy Movies In Second Quarter
A lackluster first quarter at the box office will translate into a lackluster second quarter for DVD rentals, a report by media analyst Eric Wold of B. Rile & Co. suggests. In a note to clients on Wednesday Wold said that kiosk rental outfit Redbox, which reports its second-quarter results next week, will likely see an average 8.5 percent drop in rental revenue per kiosk but that the drop will be more than offset by the addition of 900 new kiosks and operating efficiencies. Moreover, he noted, revenue from rentals is expected to soar during the second half of the year -- particularly in the fourth quarter -- as the spring and summer blockbusters become available at the kiosks. He also noted that 30-40 percent of Redbox kiosks were upgraded during the quarter to offer 80 slots each.