Shares of RedBox parent Coinstar are down 30% after hours after the company slashed guidance.
In an announcement, the DVD kiosk company cited soft demand for some key titles as being behind the ugly news.
For the fourth quarter, it now sees revenue of $391 million, which is below the $415-$440 million range it had previously given.
Said CEO Paul Davis: “Overall, the performance of the redbox business during the fourth quarter was not in line with our forecast. This was redbox’s first holiday season with 28-day delayed titles, and we underestimated the impact that the delay would have on demand during the fourth quarter. We also expected much better performance from Blu-ray and had purchased to a higher level of demand.”
Shares of Netflix are sliding in sympathy.
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