Market Currents

• Tuesday, December 1, 2009

• 09:26 AM NCR (NCR) expected to announce today it will roll out 200 Blockbuster-branded (BBI) DVD rental machines in NYC drugstores, a move aimed at competitor Redbox (CSTR), which has just three Manhattan boxes. The move highlights the trend toward low-price rentals at the expense of more lucrative revenue streams. Comment!

• Wednesday, September 16, 2009

• 07:57 AM Facing heavy competition from NetFlix (NFLX) and Redbox (CSTR), Blockbuster (BBI) plans to close up to 40% of its stores over the next two years in a move it says will boost profitability and save $26M in working capital. Comment!

• Wednesday, August 26, 2009

• 09:07 AM The four-month revenue-sharing trial between Paramount Pictures' (VIA) and Redbox (CSTR) is a win-win: it gives Redbox a little more leverage in dealing with hold-out studios and gives Paramount a little more flexibility in its efforts to boost DVD sales. Comment!

• Thursday, August 20, 2009

• 17:13 PM Great graphic demonstrates where entertainment dollars are going. Goes a long way toward explaining why studios are so vexed by Redbox (CSTR). 1 Comment

• Wednesday, August 19, 2009

• 10:50 AM Coinstar's (CSTR +0.5%) Redbox files suit against Warner Home Video (TWX -0.3%), disputing new terms that prohibit Redbox from renting Warner titles through its kiosks for the first 28 days after release. Redbox says it will continue to offer customers access to all new major releases. Comment!

• Tuesday, August 18, 2009

• 09:08 AM Redbox (CSTR) wins a partial, and unexpected, victory after a judge rules the firm can proceed with antitrust claims against Universal Pictures (GE). Two other claims were dismissed. Redbox is also battling Fox (NWS.A) and Warner Bros. (TWX). (previously) Comment!

• Wednesday, August 12, 2009

• 13:53 PM Redbox (CSTR) files suit against Fox (NWS.A) and Universal Studios (GE) over 30-day delays of new-release DVDs to the machine's boxes. The studios feel that the $1-a-day rental price is undercutting DVD sales. Comment!

• Thursday, August 6, 2009

• 13:13 PM Dollar-a-day DVD-kiosk company Redbox (CSTR -5.4%) got some earnings-call airtime yesterday from News Corp (NWS.A) (Redbox's effect on DVD sales "a real issue for us"), and now Fox is trying to fight what it considers gross undervaluing of its discs by establishing a 30-day delay for new releases to the machines. Comment!

• Tuesday, August 4, 2009

• 16:33 PM Coinstar (CSTR): Q2 EPS of $0.23 beats by $0.06. Revenue of $314M (+43%) vs. $305M. Sees full-year EPS of $0.80-0.86 vs. $0.77. Shares +3% AH. (PR) Comment!

• Monday, July 20, 2009

• 13:35 PM Hollywood studios' love-hate relationship with Redbox (CSTR +5.3%). Comment!