Tag Archives: outr

Netflix, Amazon focus on hit TV shows, fewer movies

Streaming video services Netflix and Amazon.com are reshaping their content libraries to focus more on popular TV shows and less on hit movies, a new study indicates. Netflix (NFLX) has maintained its strong position in offering top TV show content to subscribers, while Amazon.com (AMZN) has made strides over the past year to close the gap, Piper Jaffray analyst Michael Olson said in a research note Wednesday. Netflix now offers 32% of the top 75 TV shows from the past four years, compared with 33% a year ago. Amazon has 12%, up from 7%. But Hulu reigns in the category with 51% of the top TV shows, up from 44% last year. Redbox Instant, a joint venture of Redbox parent Outerwall (OUTR) and Verizon Communications (VZ), has none of the top TV shows because its focus is on movies. Netflix and Amazon are cutting their reliance on hit movies for…

Best Days Of Redbox Now Behind It As DVD Rentals Slow

With DVD movie rentals in decline, Redbox and its parent company Outerwall are going to take a hit, a new report says. Pacific Crest Securities analyst Andy Hargreaves called Outerwall (OUTR) “significantly overvalued” in a research report Tuesday. He rates the stock as underperform. “Total DVD/Blu-ray rental volume in the U.S. has declined for six consecutive years,” Hargreaves wrote. “We have found no physical format in the past 40 years that has stabilized after five or more consecutive years of decline, which makes a stabilization at Redbox seem highly unlikely.” He estimates that Outerwall stock has a fair value of 33, based on a scenario of relatively stable 10% annual declines in rental volume. Outerwall stock hit an all-time high of 74.30 on March 7. In afternoon trading, Outerwall was down a fraction just above 59. In the first quarter, Redbox DVD rental kiosks accounted for about 86% of Outerwall’s…

Redbox DVD sales seen posting first-ever decline in Q2

DVD rental kiosk operator Redbox posted better-than-expected results in the first quarter, driving sales and profits higher for parent company Outerwall (OUTR). But Redbox expects to see sales decline for the first time ever on a year-over-year basis in the current quarter. Outerwall stock rose 6.3% to 71.60 on Friday after reporting Q1 results late Thursday. The Bellevue, Wash.-based company earned $1.27 a share excluding items, up 37% from a ear earlier, on sales of $600 million, up nearly 4.5%. Analysts polled by Thomson Reuters were expecting Outerwall to earn 93 cents a share on sales of $587 million in the March quarter. Earnings per share were boosted by Outerwall’s stock repurchasing program. It bought back about 6 million shares during the quarter. Redbox expects to see its first year-over-year quarterly revenue decline ever in the June quarter, Wedbush Securities analyst Michael Pachter said in a research note Thursday…