Rentrak Posts $261K Q2 Loss3 Nov, 2011 By: Erik Gruenwedel
Company’s trademark revenue-sharing disc distribution business revenue declines 22%
Rentrak Corp. Nov. 3 reported a second-quarter (ended Sept. 30) net loss of $261,000, compared with income of $408,000 during the prior-year period.
The principle culprit included the Portland, Ore.-based company's trademark pay-per-transaction home entertainment business, which saw revenue drop 22% to $12.6 million, compared with revenue of $16.2 million last year.
Rentrak said the PPT segment saw a 13% decline in the number of retail customers (i.e. independent video stores) and a 20% decline in the number of theatrical rental titles made available during the quarter compared with last year.
Rentrak CEO Bill Livek said the PPT business was negatively affected by movie studios shifting content from the September quarter to later in the fiscal year. Livek said he doesn’t expect this trend to change until the middle of 2012.
“Additionally, Warner Bros.’ recent decision to release its video content in the retail channel before offering it to the rental market will have a negative impact on our PPT business for the remainder of the current fiscal year,” Livek said in a statement. “We continue to believe that the brick-and-mortar segment of the market will remain viable, especially with Blockbuster under new ownership.”
Meanwhile, Rentrak’s digital media measurement business saw revenue increase 17% to $9.3 million, from $7.9 million last year.