Redbox looking for the next big hit
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By John Pletz October 15, 2012
Redbox still dispenses double-digit revenue growth as reliably as its namesake machines spit out DVDs.
But the company already is looking for its next big hit as investors worry that the DVD is about to lose top billing as consumers' favorite way to watch movies at home. The first hints of this long-feared plot twist in Redbox's story emerged earlier in the second quarter, when the number of DVD rentals per kiosk declined 7 percent—its first drop. The Oakbrook Terrace-based company said it was suffering from a weak summer movie lineup. The stock has fallen 25 percent since then to about $45.
