While Netflix is putting most of its energy into attracting customers to its streaming service, Redbox, while also expanding its streaming service, plans to focus its attention on physical media -- DVD and Blu-ray rentals, J. Scott Di Valerio, CEO of parent company Coinstar, told the annual J.P. Morgan Global Technology, Media and Telecom Conference in Boston on Thursday. Di Valerio said that Redbox will likely attract even more business as it updates its kiosks to hold 80 discs, The greater capacity will allow Redbox to offer additional copies of the most in-demand titles. He said that Redbox rented about 200 million discs during the first quarter of this year, and he anticipates that overall rentals will increase 5-10 percent over the next three years although he expects Blu-ray discs to become an ever-growing contributor to growth -- particularly since Netflix, Redbox's principal competitor, can't offer Blu-ray quality via its streaming service.
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