A shocking new report from L.A. Biz shows Redbox is facing an uphill battle when it comes to staying relevant in the age of online streaming.
The company saw its revenue per kiosk slump $5,000 between Q1 and 2012, when it was $50,000 on average, and its number of new releases is down almost 13% year-over-year, says L.A. Biz. "Many of Redbox's current stock are rip offs or cheap imitations of more popular films, which aren't fooling consumers who are used to Netflix's selection."
That revenue per kiosk will only decline further as more customers look for ways to get their hands on new releases faster. There's a 28-day window between the time a movie comes out on DVD/on-demand and when it hits a Redbox kiosk. And with only 39 major new releases on deck—down 14% from 45 last year, says L.A. Biz—the company is scrambling to catch up.