Redbox Owner’s Shares Rise After It Reports Strong Q4 Results And A Buyback

By | Thursday February 6, 2014 @ 1:48pm PST

Outerwall (yes, that’s the company’s name) also announced a new president for Redbox: Mark Horak, who’ll move from Warner Bros Home Entertainment on March 17 to run the DVD kiosk company. RedboxBut the financial disclosures are probably most responsible … Read More »

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Shares In Redbox Parent Rise After Jana Partners Discloses Shake-Up Plans

By | Monday October 7, 2013 @ 7:22am PDT

Outerwall‘s stock price is up about 8% this morning, the first trading day after the activist investor group disclosed it bought 3.8M shares — about 13.5% of the total – and wants the owner of the Redbox DVD rental kiosks to begin “a review of strategic alternatives” that could include a sale or breakup. Now the company’s largest shareholder, Jana Partners said in an SEC filing that Outerwall’s stock is “undervalued” and it wants management to consider “a strategic transaction, selling or discontinuing certain businesses, or pursuing a sale” of the company to provide “a significant return of capital to shareholders.” Jana also said it wants to talk to management about “other topics including management and board composition, strategy and future plans.” Outerwall — formerly known as Coinstar — has been on the defensive since it disclosed last month that Q3 earnings will fall short of expectations. One problem is that Redbox is “mature, making investment in the company difficult for growth investors,” Wedbush Securities analyst Michael Pachter says. But B. Riley’s Eric Wold says this morning that Jana’s interest in Outerwall could highlight “long-term opportunities that still remain with physical rentals” many of which have been “unrecognized and undervalued by investors.” Read More »

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Redbox Owner’s Shares Plummet After It Reports Disappointing Summer Sales

By | Monday September 16, 2013 @ 2:07pm PDT

Stock prices for kiosk company Outerwall are down more than 20% in post-market trading after it lowered its financial projections for the year noting in a release that promotion discounts in July and August “drove consumers toward more single … Read More »

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Is Redbox’s Impact On Video Rentals About To Peak?

By | Friday July 26, 2013 @ 1:04pm PDT

A lot of people are asking that question today after the company behind the DVD rental kiosks reported disappointing results for Q2. Shares of Outerwall (formerly Coinstar) closed down 13.2% after it said that Redbox revenues increased just 4% compared with the same period last year — even though the total number of kiosks was up 13%. Redbox came up short as bargain-hunters took advantage of promotions and only kept discs out for one night, resulting in a 9.9% decline in average revenue per kiosk. (DVDs go for $1.20 a night with Blu-ray discs $1.50.) The company also cut its forecast for the number of kiosks it will add this year while the experiment to sell sports and entertainment tickets at the kiosks “did not meet expectations”, CEO J. Scott Di Valerio told analysts. These developments will “accentuate concerns that the DVD rental market is quickly approaching saturation, and we believe that this is probably true”, says Wedbush Securities’ Michael Pachter. He also has soured on the Redbox Instant By Verizon streaming joint venture, saying the rollout “is moving at a very slow pace” and “revenues and profitability remain elusive.” Read More »

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Coinstar Shares Jump On Higher Than Expected Q1 Earnings

By | Thursday April 25, 2013 @ 1:15pm PDT

The stock is up more than 5% in after-market trading following the earnings report — plus an announcement that the company behind the Redbox kiosks plans to change its name to Outerwall. Whatever it’s called, it reported Q1 net income of $22.6M, -57.9% vs the period last year, on revenue of $574.7M, +1.1%. The revenue number is short of the $579.4 that analysts expected. But core earnings per share, factoring out one-time gains and losses, came to 93 cents — well ahead of the 86 cents the Street anticipated. The Redbox disc rental kiosk unit generated $92.7M in operating income (-15.3%) on revenue of $507.9M (+1%). The slight top-line growth was mostly due to the additional kiosks in the field. Profits took a hit as a result of “an increase in product costs related to higher DVD content purchases” — including increased buys from Warner Bros resulting from the deal they struck late last year. Coinstar says that “the physical market is stabilizing following further Blockbuster store closings and Netflix’s continued efforts to shift their disc customers to streaming.” Meanwhile, Blu-ray disc rentals “exceeded our expectations” and represented 14.2% of Redbox revenue, and 12% of total rentals. The company expects the HD discs to account for as much as 16% of Redbox revenue in Q2. CEO J. Scott Di Valerio says that the “continued growth in Redbox market share shows our ability to win with consumers.” Read More »

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Coinstar Shares Fall After It Discloses CEO Departure And Replacement

By | Thursday January 3, 2013 @ 1:44pm PST

The stock is down 3.9% in initial after-hours trading. The maker of the Redbox DVD rental kiosks says that CEO Paul Davis — who has held the top job since 2009 — will retire in March, and be replaced by CFO J. Scott Di Valerio. The change comes as the company, in a joint venture with Verizon, begins to roll out a streaming service called Redbox Instant that aims to compete with Netflix and Amazon. The announcement about Davis’ departure also notes that Coinstar expects to hit its full-year and Q4 forecasts for revenue and cash flow growth with earnings from continuing operations at the high end of a range it provided. But that’s “primarily due to lower company G&A expenses and certain tax benefits at Redbox” — not necessarily strong results from the core business. Here’s the release: Read More »

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Redbox Instant Subscriptions Will Cost $8 A Month And Include EPIX Content

By | Wednesday December 12, 2012 @ 6:40am PST

We still don’t have a firm start date, although the joint venture between Redbox and Verizon says that consumers will be able to subscribe to a “beta product” sometime this month. Redbox Instant by Verizon‘s streaming service will cost a penny more than Netflix and will include four, one-night credits each month to rent DVDs at Redbox kiosks. For an additional dollar a month, customers can use the credits to rent Blu-ray discs. We still know little about the streaming content — Warner Bros is the only studio that has publicly said it will participate. But Redbox Instant says its new deal with EPIX will enable it to offer Paramount, Lionsgate, and MGM movies 90 days after they appear on EPIX’s pay TV channel. The venture also will sell and rent digital versions of new movies from Lionsgate, NBCUniversal, Paramount, Relativity and Sony Pictures Home Entertainment. The web-based service will work with mobile devices powered by iOS and Android operating systems as well as Samsung Blu-ray Players and TVs with SmartHub, LG Smart TV and Blu-ray Players, and Google TV. Here’s today’s release: Read More »

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Redbox Instant By Verizon May Offer Unlimited Streaming For $6 A Month: Report

By | Friday November 30, 2012 @ 10:06am PST

That’s one of the details disclosed by web site GigaOm, which found a help page for people beta testing the streaming service that’s due to launch next month — with hopes to challenge Netfllix and Amazon … Read More »

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Coinstar Shares Fall After Q3 Earnings Fall Short Of Expectations

By | Thursday October 25, 2012 @ 1:16pm PDT

UPDATE, 3:23 PM: If you were waiting for detailed information about the Redbox Instant by Verizon streaming plans, you’ll have to keep waiting. Coinstar told analysts in a conference call that the online service is in an internal beta test and the test will be opened to the public soon. “We’ve been really pleased with the progress,” CEO Paul Davis says. But he didn’t offer much more, including what studios might participate in addition to Warner Bros. “We’ll talk more about what the other offerings will be when we go public.” Coinstar said it kicked $10.5M into the joint venture in Q3. If it has to add more in Q4 then it will be “relatively small.”

PREVIOUS, 1:16 PM: Even the announcement of a new distribution agreement with Warner Bros — which will provide Redbox kiosks with home video titles 28 days after they hit retail stores — wasn’t enough to help the Coinstar in investors’ eyes. The stock price started to dive in late trading, and continued to fall about 8% after hours when the company behind the Redbox kiosks reported disappointing Q3 results. Net income of $36.8M was down 9.5% vs the period last year, on revenues of $537.6M, up 15.5%. Analysts thought that revenues would come in closer to $557M. And earnings per share from continuing operations, at $1.14 was a penny shy of forecasts. Read More »

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Redbox Will Promote UltraViolet In New Disc And Online Deal With Warner Bros

By | Thursday October 25, 2012 @ 1:10pm PDT

OAKBROOK TERRACE, Ill. (October 25, 2012) – Redbox, a wholly owned subsidiary of Coinstar, Inc. (Nasdaq: CSTR), and Warner Bros. Home Entertainment have signed a multi-year agreement to bring Warner Bros.’ Blu-ray Disc™ and DVD titles to Redbox® kiosks 28 days after their retail release dates.

In addition, Redbox announced plans to join the Digital Entertainment Content Ecosystem (DECE) and has agreed to promote UltraViolet through a program of mutually agreed-upon promotions and marketing tactics designed to help retail customers discover UltraViolet.

“For the past 10 years, Redbox has been committed to giving consumers affordable access to new-release entertainment,” said Galen Smith, senior vice president, Redbox. “This new agreement continues this commitment and represents an exciting new chapter in our relationship with Warner Bros., and an opportunity to explore our consumers’ interest in UltraViolet.”

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Redbox Begins To Sell Event Tickets At Its DVD Rental Kiosks

By | Wednesday October 3, 2012 @ 8:18am PDT

The Coinstar-owned DVD kiosk company had signaled that it might begin to offer tickets — although today’s announcement doesn’t include movie theaters, as at least one analyst expected.  Redbox, which is owned by Coinstar, says that it’s teaming … Read More »

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Coinstar Chief Ducks Question About Possible Sale As Shares Spike

By | Thursday August 16, 2012 @ 10:25am PDT

The stock price is up more than 8% at midday after the New York Post said that the owner of the Redbox DVD rental kiosks is talking about selling itself to “an undisclosed private-equity firm.” Coinstar has a market … Read More »

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Redbox President Gregg Kaplan Replaced by Education Company Exec

By | Monday August 13, 2012 @ 1:56pm PDT

This is the second time over the last 12 months that the president has split from Coinstar’s influential DVD kiosk unit. Gregg Kaplan, a Redbox co-founder, became interim president in July 2011 when another co-founder, Mitch Lowe, left. Kaplan is … Read More »

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Sony Extends Redbox Distribution Deal For Two Years

Sony had the right to bail out on September 30, but will hang in for two years — with two, one-year options to extend the agreement past 2014 — Redbox parent Coinstar says in an SEC filing … Read More »

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Coinstar Shares Hammered After Q2 Earnings Fall Short Of Expectations

By | Thursday July 26, 2012 @ 2:02pm PDT

The stock price is down about 15% after hours for the company behind the Redbox kiosks. It reported net earnings of $36.9M, +37.9% vs last year’s Q2, on revenues of $532.2M, +22.3%. So what’s the problem? Analysts thought that … Read More »

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Verizon Exec To Run Video Streaming JV: “Redbox Instant By Verizon”

By | Tuesday July 24, 2012 @ 7:02am PDT

Redbox and Verizon are going to have a tough time catching up with Netflix if they continue to haphazardly dribble out news about their streaming plans — the way they did this morning. Five months after … Read More »

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Redbox Will Rent ‘John Carter’ DVDs Soon Despite Disney’s New 28-Day Delay

By | Thursday June 7, 2012 @ 6:42am PDT

Disney has quietly joined Universal, Fox, and Warner Bros in refusing to provide DVDs to low-cost rental firms including Redbox and Netflix on the day the discs go on sale, Home Media Magazine reports. The unannounced change caught people’s attention this week when Redbox kiosks didn’t have Disney’s John Carter, released on home video this past Tuesday. But those waiting for the financial mega-bomb to hit Redbox — so they’d only have to pay $1.20 a night to see what the fuss was about — won’t have to wait long. The company will simply buy discs from retailers so it can offer them for rental by June 12. “Redbox has always worked with Disney on a per title basis, without a contract,” the Coinstar-owned company says. “We will be sourcing John Carter through alternative means.” Redbox began to do the same thing with Warner Bros releases this year after the studio said it would double the delay period to 56 days before it would offer wholesale terms for its rental discs. Redbox has agreed to terms with Universal and Fox that include a 28-day delay. Other studios including Paramount and Lionsgate provide home videos the same day they hit retail shelves. Read More »

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Coinstar Chief Says Coffee And Redbox Blend In Automated Retail Strategy: Video

By | Wednesday June 6, 2012 @ 3:36pm PDT

Coinstar CEO Paul Davis — whose company owns the Redbox DVD rental kiosks — appeared on CNBC today to discuss a venture that’s almost as important to folks in the media business: coffee. Coinstar shares were up 6% after Coinstar said that by year end it will roll out 500 … Read More »

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Is Redbox Preparing To Sell Movie Tickets At Its Disc Rental Kiosks?

By | Thursday May 17, 2012 @ 5:40am PDT

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 … Read More »

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