Netflix (NFLX) on Watch Following Update from Peer Outerwall (OUTR)
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Netflix (Nasdaq: NFLX) is active at the start following an update issued by peer Outerwall (Nasdaq: OUTR).
Outerwall, formerly Coinstar, said it planned to cut about 8.5 percent -- or 251 jobs -- of its workforce and said Redbox president Anne Saunders would be leaving the company.
Redbox is a competitor with Netflix and accounts for about 80 percent of Outerwall's annual revenue. Redbox has 43,700 kiosks which allow customers to rent or buy films and video games.
Today's news might hint that more consumers are embracing the Netflix model, which allows for streaming video content versus having to physically go rent an item. The process is quicker and allows for a wider variety of choices versus the stationary kiosk.
Outerwall and Verizon (NYSE: VZ) recently launched Redbox Instant, which was aimed to be a stronger competitor in the streaming video content segment, but updates to how the service has been performing is limited. Today's news might be a telling tale of how that initiative has gone.
For more on Outerwall's updated outlook, click here.
After starting lover Tuesday, Netflix is up about 0.3 percent.
Outerwall, formerly Coinstar, said it planned to cut about 8.5 percent -- or 251 jobs -- of its workforce and said Redbox president Anne Saunders would be leaving the company.
Redbox is a competitor with Netflix and accounts for about 80 percent of Outerwall's annual revenue. Redbox has 43,700 kiosks which allow customers to rent or buy films and video games.
Today's news might hint that more consumers are embracing the Netflix model, which allows for streaming video content versus having to physically go rent an item. The process is quicker and allows for a wider variety of choices versus the stationary kiosk.
Outerwall and Verizon (NYSE: VZ) recently launched Redbox Instant, which was aimed to be a stronger competitor in the streaming video content segment, but updates to how the service has been performing is limited. Today's news might be a telling tale of how that initiative has gone.
For more on Outerwall's updated outlook, click here.
After starting lover Tuesday, Netflix is up about 0.3 percent.
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