Redbox will be closing over 500 of its rental kiosks this year

Redbox’s streak of big growth is over: the company says it plans to uninstall more than 500 of its DVD/Blu-ray rental kiosks this year. The move comes after Redbox saw its revenue increase by just 3 percent last year, and The Wall Street Journal says it’s not likely to see better results in 2014. But beyond the flat growth, Redbox seems to be running out of new spots for its signature rental machines, having already hit saturation across most major US supermarkets.

Redbox installed more than 40,000 DVD rental kiosks in grocery stores, 7-Eleven’s and Wal-Marts over the past seven years, fundamentally transforming the movie business in the process with its low prices and convenience. This year it is uninstalling kiosks—more than 500 of them in the U.S. The decision by Redbox’s parent company, Outerwall Inc., to start managing its network of ubiquitous red machines for efficiency rather than growth signals a vital change. After years of double-digit increases, Redbox revenue rose only 3% last year, to $1.97 billion, and is projected to stay about even in 2014. Operating income was flat at $239 million last year, after increasing 41% in 2012 and 74% in 2011.