If it was so profitable there would be many copycats, like with their streaming business.
I don’t know of any copycat.
I don’t know of any copycat.
$80 million in revenue in Q2 2023.
however reading on company "Redbox shares were down 40% in recent trading.
Redbox shareholders on Tuesday approved the company's acquisition by Chicken Soup for the Soul Entertainment." in August.
You would think Netflix getting out of the business should be a sign for shares to go up. Maybe they're not that profitable either.
Investors don't care about profit of the business, they care about profit of their investment (ROI). Whether a company is profitable or bleeding money only matters as part of the prediction on where the share price will go.
Netflix IPOed in 2002 and Redbox's parent company is a penny stock (Chicken Soup of the Soul Entertainment // NASDAQ: CSSE)
VCs do not invest in public entities.
The companies that invest in public entities are Investment Banks and Private Equity, both of which are different industries with different norms and regulations from Venture Capital
A massively corp with many experienced analysts considers a market no longer capable of producing a profit... to me that is a sign that the sector is dying.
There's probably a [small] steady-state business in there, but investors want growth.
Are you aware that there are publicly funded buildings in most towns in the US that permit you to rent one or multiple books without a monthly subscription fee? And that the late fees charged by those institutions do not share any of those revenues with the author? And that this model has been around for hundreds of years?
millions of people rented nintendo/sega cartridges in the nineties. N actually tried suing blockbuster https://www.nintendotimes.com/1989/08/19/nintendo-sues-block... but couldnt on game lending grounds so went for xeroxing manuals. Blockbuster in return switched to third party manuals, but lawsuit failed.
N heavily lobbied for Computer Software Rental Amendments Act, but ultimately failed and games are excluded https://www.congress.gov/bill/101st-congress/senate-bill/198
There are still places without running water and sewage, never mind electricity and Internet access. I'm going to guess that everyone you know has a smartphone, if not a laptop, kindle, and a tablet, plus home Internet access. But not everyone is so lucky, and even in the US, there are poor areas. Huge swaths still don't have cell phone service, never mind 5G. $500 for a Starlink disk, with a monthly service charge, ain't happening.
Some of these places are intentionally devoid of Internet - there are places in Napa, outside of San Francisco, where none of the landowners will allow cell-phone towers in the hilly region, because they don't want it, so there's still no cell access. 10 years won't change that.
Whether that's enough to sustain Redbox, specifically, is a different question, and sure, more people will have Internet access in 10 years than today, but "dying business" is just a perception. Just because you don't have a use case for it doesn't mean that others won't. OG tech company Yahoo! could be called a "dying business", but they did $280 million in revenue for Q2, 2023.