Watch out, Netflix! You may have wiped out almost all the Blockbusters from El Lay to La Canada, but there are still PLENTY of Redboxes…and more are coming!
According to Piper Jaffray analyst Michael J. Olson, Coinstar's Redbox movie rental kiosk are reaping the benefits of Netflix totally screwing up with their formerly loyal customers.
Olson says that Web traffic to Redbox.com has increased, and Google search trends are suggesting that Netflix users will start migrating to Redbox more and more.
Not only that, but Back in July, Redbox's second-quarter profit DOUBLED as they continued to expand AND their revenue grew 34% to $363.9 million!!!!
Also, Coinstar has added approximately 6,000 Redbox locations over the last year, and they're continuing to do so! Not bad!
So yeah…they may not have a DVD-by-mail/online streaming service right now, but don't discount Redbox as a threat, Netflix! They've got an opportunity here and they're totally taking advantage of it…as they should!
What do U think? Is Redbox a major threat to Netflix at this point???