The stock of Coinstar is strong this year due to its mighty redbox DVD-rental kiosk, according to an Associated Press story that ran in the Boston Herald. As of last Friday Coinstar’s stock was up 50 percent in 2010 compared with a 4 percent rise in the S&P 500 Index, the AP reports.
The article notes the stock, and redbox, remain attractive despite competitive challenges from Netflix and the digital download of movies. After all, consumers in the midst of a severe recession appreciate the $1 redbox rental price and many do not have cable access for digital downloads. And don’t forget, redbox should pick up customers of bankrupt Blockbuster as it closes stores, according to an analyst in the story.
| What do you think? Will redbox continue to generate strong revenues as competitors switch to digital download technology? Continue the conversation in the comments below! |
