Time Warner and Coinstar Squabble Over Redbox Delivery
Expect more delays at your local Redbox, as a new agreement between Coinstar (NASDAQ:CSTR) (the company that manages mobile rental unit Redbox) and Time Warner (NYSE:TWX) will extend by double the time Redbox will have to wait for Time Warner content. All Things D divulged late Thursday that Redbox will now be on a 56 day delay for new releases, as opposed to the prior arrangement of 28 days. This will be the same deal with Netflix (NASDAQ:NFLX) and Dish Network’s (NASDAQ:DISH) Blockbuster.
At the same time, Coinstar is stating that its 28-day deal with Time Warner is still intact, as reported by Bloomberg today. Research firm Piper Jaffray issued a note to investors yesterday weighing in with its opinion that Coinstar will be settling for a 45-60-day delay with reduced fees owed to Time Warner, or implement a workaround.
Despite the discrepancies, none of the outcomes bode as poorly for Coinstar as some on Wall Street might think, said Piper Jaffray, which holds to a positive outlook for Coinstar. On the other hand, Morgan Keegan downgraded Coinstar Friday morning to Market Perform from Outperform, in part because the research firm thinks that other film studios will also attempt making Coinstar wait longer for their rental content.
Here’s how Time Warner, Coinstar and Netflix are each reacting to the news today:
Time Warner Inc. (NYSE:TWX): TWX shares recently traded at $36.52, down $0.27, or 0.73%. They have traded in a 52-week range of $27.62 to $38.62. Volume today was 2,232,808 shares versus a 3-month average volume of 7,098,020 shares. The company’s trailing P/E is 13.86, while trailing earnings are $2.63 per share.
Coinstar Inc. (NASDAQ:CSTR): CSTR shares recently traded at $41.82, down $1.55, or 3.57%. They have traded in a 52-week range of $37.43 to $60.71. Volume today was 1,407,300 shares versus a 3-month average volume of 1,184,630 shares. The company’s trailing P/E is 16.06, while trailing earnings are $2.60 per share.
Netflix, Inc. (NASDAQ:NFLX): NFLX shares recently traded at $86.26, up $6.96, or 8.78%. They have traded in a 52-week range of $62.37 to $304.79. Volume today was 12,154,572 shares versus a 3-month average volume of 8,255,690 shares. The company’s trailing P/E is 19.61, while trailing earnings are $4.40 per share.
To contact the reporter on this story: Brooke Edge at email@example.com
To contact the editor responsible for this story: Damien Hoffman at firstname.lastname@example.org