Why Coinstar Is Dominating the DVD Rental Market

Coinstar's Redbox kiosks are running away with the DVD rental business.

The automated retailer improved its market share by 7 percentage points, to reach nearly 50% of the market last quarter. And with DISH Network's Blockbuster still closing stores, and Netflix continuing to push its customers into streaming, further gains appear to be in the cards for Coinstar.

In the video below, Fool contributor Demitrios Kalogeropoulos discusses Coinstar's growing dominance and argues that the company's biggest opportunity is in convincing its growing customer base to use the service more frequently.

Internet video streaming may be all the rage, but customers still flock to the ubiquitous red boxes that spit out DVDs. How long can Coinstar, the company behind RedBox DVD rentals and its namesake loose-change coin machines, survive on this old-media medium? Longer than many may think, especially with its new expansion plans. The opportunity is ripe for Coinstar to grab market-share, but is it the right time for investors to grab its stock? To answer this question, you're invited to check out The Motley Fool's new comprehensive research report on the opportunities, risks, and must-watch areas in Coinstar's future. Simply click here now to claim your copy today.

The article Why Coinstar Is Dominating the DVD Rental Market originally appeared on Fool.com.

Fool contributor Demitrios Kalogeropoulos owns shares of Netflix. Erin Miller has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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