40 Million Reasons Netflix Was Wrong?

Buoyed by Netflix's (NFLX -1.31%) dramatic rush away from the DVD rental business, Coinstar (OUTR) has seen some impressive success with its rival Redbox kiosks. In fact, the company just passed 40 million customer accounts.

But subscriber growth isn't the only thing Netflix is missing out on by dialing back its challenge for the DVD rental market. In the following video, Fool contributor Demitrios Kalogeropoulos discusses how Coinstar is seeing profitability spike as Blu-ray disc usage rises. And console video game rentals have been another bright spot for Coinstar. With Netflix keeping its focus on streaming, it doesn't look as if its priorities will be changing anytime soon. And that leaves Coinstar well positioned to dominate the DVD business for years.