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Disrupters Are Getting Disrupted Now

Cable companies have been suffering lately as more of their customers have decided to opt out and use cheaper online VOD services like Netflix and Hulu. But now it looks like some of the disrupters may be getting disrupted.

Monday night, Outerwall reported a plunge in business at its Redbox DVD rental service, the cheap alternative to cable on-demand movies.November was bad and December is worse, the company said in a pre-announcement that its year-end results won’t meet previous guidance. The stock plunged 22% in mid-morning trading, leaving Outerwall investors staring at a total loss of 39% for 2015.

Redbox has been a classic low-end disrupter of the cable movie rental business. Its ubiquitous kiosks offer a slender selection of movies on the old-fashioned DVD format, but the price is cheap and the service convenient for people who shop for groceries at least once a week.

Source : Yahoo

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