Coinstar, the parent company of DVD-vending company Redbox, reported third-quarter earnings yesterday, with the unit’s revenues up 90 percent to $198.1 million. The company also added 2,700 kiosks during the quarter, bringing its total DVD kiosk count to 20,600 nationwide.
Revenue growth for Coinstar’s latest quarter actually slowed from previous quarters this year, as the LA Times points out. The company’s revenue grew 110 percent in the second quarter and 155 percent in the first quarter.
But, growth is growth, especially when it comes at a time when DVD and Blu-ray sales have dropped and home entertainment revenues are depressed.
Redbox’s growth probably won’t ease the heat the company is feeling from some Hollywood studios, which are none too happy about the kiosks’ cheapo dollar-a-night movie rentals. But not everyone is against Redbox; the company recently signed distribution deals with Summit Entertainment and NCircle Entertainment.
Redbox has also started experimenting with higher rental prices in select markets, in a move that could be an olive branch to grumbling studios, or a way to maintain revenue growth.
And just a reminder that we’ll be chatting with Redbox SVP of Marketing and Customer Experience Gary Cohen at next week’s NewTeeVee Live conference. If you act quick, there’s a $50 discount going on tickets until 5 p.m. PT today.