Redbox is leaving Canada
In its 4Q and year-end conference call yesterday, Outerwall Inc. announced that it will be shuttering its Redbox kiosk business in Canada.
"The remaining value of the content library and capitalized install costs will be amortized over an expected three-month wind-down period. Following the final shutdown of the operations in Canada, the company expects to report Redbox Canada results as a discontinued operation," the company said in a press release.
The Redbox Canada website also conveyed the news, with details on the exit. Customers can continue to rent movies from the kiosks until February 13, and will have until March 5 to return them. If customers keep movies past that date, they will be charged $30 plus tax for each DVD, and $40 plus tax for each Blu-ray.
"We were excited to bring our service here, but unfortunately, demand just didn’t meet our expectations," the company wrote in its F.A.Q. "We will be focusing our attention on our U.S. business, where demand for physical media remains strong."