Have you ever seen those Red DVD Kiosks at your local supermarket? For $1 a day, you can automatically select any movie and rent the DVD. There are no late fees, and if you keep the movie after a certain number of days, the movie is yours to keep.
In this economy, and in general, this is a very appealing option. Blockbuster (BBI), for example, offers rental of a DVD for around $4 per day. Other options include Netflix (NFLX), which mails DVDs through the mail.
The Company that profits from those Red DVD Kiosks is Coinstar (CSTR). Yes, this is the same company that makes those machines that convert loose coins to cash for a fee.
Movie studios are not happy with the underpricing of these DVDs.
Coinstar is a $1 Billion company, with a forward PE of 22, and 5 Year Estimated Growth Rate of 28%, for PEG of 0.79, a very good value. (Anything PEG under 1 is a good value).
It is said that Redbox has a 13.8% market share of the DVD rental market, up from 9% last year, and just 2.3% in 2007.
Today's Stock Chart of CSTR
Compare Performance of CSTR, BBI, NFLX
Showing posts with label bbi. Show all posts
Showing posts with label bbi. Show all posts
Tuesday, September 1, 2009
Friday, June 6, 2008
Home Entertainment Content Overload Will Keep You at Home
How can we leave the living room?
We can see that the Analog to Digital Living Room Long Term Trend is in place as people are upgrading to High Definition Digital Television, [Corning Glassware (GLW) is a play on this.] and installing Home Theater Systems [Dolby (DLB) is a play on this]. Content providers such as Comcast (CMCSA), DirectTV (DTV), and the Dish Network (DISH), also help keep people in their seats.
Now there are even more ways to keep people in their living rooms.
DVRs, or Digital Video Recorders, allow users to record and watch their favorite shows, even in high definition. These devices are very user friendly, and users of products such as Tivo (TIVO) have a cult following. The NDS Group (NNDS) is also another play on this.
Tivo has recently teamed up with Amazon.com (AMZN) to provide a service called Amazon Unbox, that allows movies and shows to be directly downloaded from Amazon to the Tivo DVR.
Netflix (NFLX) and BlockBuster (BBI) offer another alternative to home entertainment. These companies ship DVDs by postal mail and provide another source of home entertainment.
Netflix (NFLX) recently teamed up with Roku. Roku provides a special set-top box that allows subscribers of Netflix to stream a selection of movies directly to their television (which could be a widescreen High Definition Television). [I recently tried out the Roku system, and it is easy to setup and convenient and there are no extra service fees from Netflix. Quality at this time is close to the VHS level, but streaming is very good using broadband.]
Apple (AAPL) has attempted a similar type of Set Top Box with AppleTV but that product has not taken off.
Gaming consoles, from makers such as Nintendo (NTDOY.pk), Microsoft (MSFT), and Sony (SNE) also provide even more reasons for people to stay in their living room.
With all these forms of entertainment in the living room, how will people leave their living room?
We can see that the Analog to Digital Living Room Long Term Trend is in place as people are upgrading to High Definition Digital Television, [Corning Glassware (GLW) is a play on this.] and installing Home Theater Systems [Dolby (DLB) is a play on this]. Content providers such as Comcast (CMCSA), DirectTV (DTV), and the Dish Network (DISH), also help keep people in their seats.
Now there are even more ways to keep people in their living rooms.
DVRs, or Digital Video Recorders, allow users to record and watch their favorite shows, even in high definition. These devices are very user friendly, and users of products such as Tivo (TIVO) have a cult following. The NDS Group (NNDS) is also another play on this.
Tivo has recently teamed up with Amazon.com (AMZN) to provide a service called Amazon Unbox, that allows movies and shows to be directly downloaded from Amazon to the Tivo DVR.
Netflix (NFLX) and BlockBuster (BBI) offer another alternative to home entertainment. These companies ship DVDs by postal mail and provide another source of home entertainment.
Netflix (NFLX) recently teamed up with Roku. Roku provides a special set-top box that allows subscribers of Netflix to stream a selection of movies directly to their television (which could be a widescreen High Definition Television). [I recently tried out the Roku system, and it is easy to setup and convenient and there are no extra service fees from Netflix. Quality at this time is close to the VHS level, but streaming is very good using broadband.]
Apple (AAPL) has attempted a similar type of Set Top Box with AppleTV but that product has not taken off.
Gaming consoles, from makers such as Nintendo (NTDOY.pk), Microsoft (MSFT), and Sony (SNE) also provide even more reasons for people to stay in their living room.
With all these forms of entertainment in the living room, how will people leave their living room?
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