Wedbush Securities’ Michael Pachter thinks so after attending Redbox parent company Coinstar’s briefing yesterday for Wall Street analysts. Although the company only referred cryptically to its plan for a “new Redbox venture,” Pachter says this morning he believes that Coinstar “intends to sell movie tickets through its Redbox kiosks, helping its studio partners to drive higher-margin theatrical exhibition sales, while driving awareness of films that will ultimately come to DVD.” The company said in its presentation that it plans a market test for its “first Redbox new business concept” this year. The company has about 37,000 kiosks in 30,000 locations. Execs also offered a few details about their broadband venture with Verizon, on track to launch in the second half of this year. No word on pricing, but Pachter says “it appeared to us from the context of the discussion” that the subscription offer “will allow for unlimited streaming and limited DVD rentals at Redbox kiosks.” In addition to the talk about Redbox, Coinstar execs said they plan to sharply increase the number of kiosks that sell coffee, consumer electronics, beauty products, and prepared foods. In addition, Coinstar’s rolling out photo booths, and machines that enable consumers to get cash for their unused gift cards and used cell phones.
By DAVID LIEBERMAN, Financial Editor | Thursday May 17, 2012 @ 8:40am EDTTags: Big Deals Film, Coinstar, Redbox
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