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.
NOTE: TECHi Two-Takes are the stories we have chosen from the web along with a little bit of our opinion in a paragraph. Please check the original story in the Source Button below.
TECHi weighs both sides before reaching a conclusion.
TECHi’s editorial take above outlines the reasoning that supports this position.
Abridge's 93% valuation jump in four months tells us that something bigger than typical startup growth is cooking. It's a…
The man that was leading Apple's ultra-secret electric vehicle project has decided to leave the company, according to the Wall…
When it comes to respecting the privacy of its users and rejecting profligate government surveillance, few companies have as bad…
Whenever you hear about the ridiculous amounts of money that mobile games like Candy Crush Sage and Clash of Clans make,…
