The Deal between kiosk operator Redbox and several studios that prevents Redbox from renting DVDs until 28 days after they hit retail shelves was being blamed for lower-than-expected earnings for Redbox parent Coinstar. While on Thursday Coinstar reported fourth-quarter income from DVD sales of $11.7 million -- up from $3.4 million for the year-ago quarter -- "this was not in line with our expectations," Coinstar CEO Paul Davis said Thursday. "We have taken definitive Steps to correct the issues we encountered with our Redbox business in the fourth quarter and will be tracking progress closely." He did not indicate what corrective measures are being taken. Meanwhile, Coinstar competitor NCR announced Thursday that it will add 3,000 new Blockbuster Express kiosks to its 8,000 units by the end of this year. Company officials said that they had delayed the introduction of the new kiosks while they addressed underperforming units. "We are either addressing site issues or redeploying machines that did not show up to have the rental foot traffic we had expected," NCR exec John Bruno said.
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