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When will the DVD business of Coinstar (CSTR -1.3%) become fully saturated? The answer depends...

When will the DVD business of Coinstar (CSTR -1.3%) become fully saturated? The answer depends on who you ask with Wedbush seeing revenue falling even as new kiosks are being added while B. Riley isn't so sure the lack of blockbuster films in Q1 isn't a big factor in Coinstar's sluggish DVD business. During its earning conference call, execs noted the company is taking back market share as competitors peel away and think Coinstar will continue to have an advantage in the market for new releases. (transcript)
Comments (3)
  • Coinstar must place NETFLIX squarely in its crosshairs and undercut their streaming market. I would keep the Red Box kiosks alive, but diminish expansion since the DVD is obsolete in 3 years. Coinstar should also form an alliance with APPLE and get in on the iTV craze that will strike this December.
    30 Apr 2013, 03:48 PM Reply Like
  • Box office strength of Home Video releases in Q1 2013 were up 30.6% compared to Q1 2012 ($3.17 billion vs $2.43 billion).

     

    And yet Redbox revenue growth was nowhere near that amount, and same kiosk revenue was down.

     

    Anyone else see a near term problem with this for Coinstar?
    30 Apr 2013, 04:08 PM Reply Like
  • Wedbush may see revenue falling, but they also rate Coinstar "Outperform," which they judge should primarily occur in the second half of the year. They also raised the target price to $78 from $66.
    30 Apr 2013, 09:56 PM Reply Like
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