Apparently, not all is well in the world of Redbox.
According to reports, revenues for Coinstar, the parent company of Redbox, and their fourth quarter clocked in at $391 million, missing the forecasted $415-440 million, and ultimately lowered their earnings for the quarter from 79-85 cents a share to 65-69 cents a share.
Revenue for the full year is currently slated to be between $1.7 and $1.85 billion, and will be announced come February 3.
At first glance, this does sound like rather poor news for the company, particularly given the fact that this was the first holiday season for the company, while the 28-day delay window was put into place. However, Redbox revenue has grown 38% ‘year over year in the fourth quarter,’ and proves that while the delay window may not be the greatest aspect of the company’s portfolio, it hasn’t exactly killed it. At least not yet.
I only say not yet, because while the company may be growing ‘year over year,’ it’s not at the pace or rate that would have been originally thought. It will remain to be seen over the next few years as to the impact of this window on Redbox, and the overall world of film distribution as a whole.
That said, things don’t appear to be going too well over at Coinstar, so more on this as it comes.