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Why Coinstar Is Dominating the DVD Rental Market

Coinstar's (NASDAQ: OUTR  ) Redbox kiosks are running away with the DVD rental business.

The automated retailer improved its market share by 7 percentage points, to reach nearly 50% of the market last quarter. And with DISH Network's (NASDAQ: DISH  ) Blockbuster still closing stores, and Netflix (NASDAQ: NFLX  ) continuing to push its customers into streaming, further gains appear to be in the cards for Coinstar.

In the video below, Fool contributor Demitrios Kalogeropoulos discusses Coinstar's growing dominance and argues that the company's biggest opportunity is in convincing its growing customer base to use the service more frequently.

Internet video streaming may be all the rage, but customers still flock to the ubiquitous red boxes that spit out DVDs. How long can Coinstar, the company behind RedBox DVD rentals and its namesake loose-change coin machines, survive on this old-media medium? Longer than many may think, especially with its new expansion plans. The opportunity is ripe for Coinstar to grab market-share, but is it the right time for investors to grab its stock? To answer this question, you're invited to check out The Motley Fool's new comprehensive research report on the opportunities, risks, and must-watch areas in Coinstar's future. Simply click here now to claim your copy today.

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  • Report this Comment On May 11, 2013, at 10:15 AM, segarolow wrote:

    The thing is. RedBox does not have much of anything...I have Netflix three out at a time. And the online deal. And the new WB online deal. Got more then I need. And all for under $40.00 a month...Sorry RedBox...

  • Report this Comment On May 11, 2013, at 10:22 AM, iarmed45 wrote:

    I use redbox.... because they just don't make anymore than one movie per month worth watching..... so i spend only 1.20 per month on movies at most...... To me id rather spend the money on a good book and enjoy that for a week or so..... reading is better for you and if you like history, its great for your ability to anticipate how future events will impact your life and world.get an ebook

  • Report this Comment On May 11, 2013, at 11:59 AM, pauldeba wrote:

    Redbox is good if you want 1 movie a week that's failry new. $40 for Netflix and WB sounds like a lot, I couldn't spend more than one show 2 nights a week watching Netflix and maybe a mivie, and $30 or so for 2 nights is about double what I pay for cable per hour.

    Netflix will eventually reach 2 extremes, people that watch constantly and people that barely watch anything and don't want to pay much. The middle will 50-70% will eventually cancel as the stale material loses interest.

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