Tag Archives: outr

Video: Netflix Rival Redbox Instant Bites The Dust

Redbox Instant was no match for the Netflix juggernaut. Outerwall (OUTR), the operator of Redbox DVD rental kiosks, and Verizon Communications (VZ) announced Saturday that they are pulling the plug on Redbox Instant, a joint venture that combined Redbox DVD rentals and Verizon streaming video. The subscription service will shut down on Tuesday. Outerwall said that it will provide details on the end of its joint venture with Verizon when it reports third-quarter financial results on Oct. 30. Netflix (NFLX) stock was up more than 1% on the news, above 464, in afternoon trading on the stock market today . Outerwall and Verizon stocks were both down a fraction.

Redbox Instant joint venture rumored near end

The Redbox Instant joint venture between Outerwall (OUTR), the operator of Redbox DVD rental kiosks, and Verizon Communications is rumored to be coming to an end. The subscription service, which combined Redbox DVD rentals and Verizon streaming video, was launched in March 2013 in response to the growth of Netflix (NFLX) in the home video market. But the service never caught on with consumers. Gigaom reported on Monday that Redbox Instant is close to being shut down. It said the video service disabled sign-ups for new users three months ago because of a credit card fraud issue and hasn’t reopened its doors to new customers since. Also, existing customers have complained on social media that their service was terminated when they couldn’t update their payment information when their credit cards expired. A Verizon (VZ) spokesman declined to comment on the reports about Redbox Instant. Outerwall   (OUTR) did not respond to requests for comment as of this posting.

Redbox tests DVD price increases, lowers kiosk count

With DVD rentals slowing, Redbox kiosk operator Outerwall (OUTR) plans to squeeze more profit from the business by removing underperforming machines and potentially raising prices. Outerwall (OUTR) late Thursday said Redbox sales fell 7% year over year to $445.5 million in the second quarter. The number of Redbox movie rentals fell 9% to 169.3 million, which Outerwall blamed on a weak movie release slate. “June represented the lowest monthly theatrical box office in Redbox history,” Outerwall CEO Scott Di Valerio said in a statement. “Box office in June was down 83% from June 2013, as only four titles were released during the month.” Net revenue per rental was $2.63, an increase of 2.7% from the second quarter