KIOSK RENTALS LIKELY TO ROCKET IN 2011

Kiosk operators Redbox and Blockbuster Express are likely to see their revenue soar as a result of increased Blu-ray Disc rentals, which command a 50-percent premium, according to Wedbush Securities analyst Michael Pachter. As reported by Home Media magazine, Pachter, in a note to clients, forecasts that Blu-ray rentals will boost Redbox’s revenue by 25 percent by the end of 2011, as Blu-ray player penetration reaches 30 percent of households. Currently, standard DVDs rent for $1.00 at the Redbox and Blockbuster Express kiosks, while Blu-ray Discs rent for $1.50.