Redbox: Big Blockbusters Don't Make Good Rentals
You might imagine that the plethora of enormous $100-200-million blockbusters set to hit theaters this summer would have executives at the big online rental outlets like Redbox and Netflix salivating. Well, you'd be wrong, Galen Smith, CFO of Redbox parent Coinstar, is here to tell you. As reported by Home Media magazine, Smith told the B. Riley & Co. Investor Conference in New York on Wednesday that consumers generally buy the big blockbusters but rent moves in the $50-100 million range. That smaller ranger, he indicated, represents rental's sweet spot. He added, I'd much rather have a lot of movies in that $50-100 million range, than a lot of blockbusters. Smith's remarks sent shares of Coinstar down almost 3 percent at midday trading in on the Nasdaq exchange.