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Redbox owner buys phone trade-in company to get away from DVDs
If you owned Redbox and faced a slowly declining disc-based movie rental business, what would you do? Diversify so that you're not rendered obsolete by internet video? If so, you're not alone. Outerwall (Redbox's parent company) has bought the phone trade-in firm Gazelle for a relatively modest $18 million. The deal gives it an online counterpart to EcoATM, its kiosk-based trade-in outfit -- the hope is that it'll catch those customers who'd rather not leave home to sell an old device. The shift in strategy may seem odd at first blush, but it makes sense given that Outerwall didn't have much success dragging Redbox into the streaming era.
Redbox gets a new president plucked from the studios, former Warner exec Mark Horak
Redbox went from duking it out with Warner in 2012 over a proposed 56-day delay for rentals to cutting a deal for a shorter 28-day delay and implementing UltraViolet support in Redbox Intant, and now the relationship is getting even cozier. Parent company Outerwall announced its earnings today and that Mark Horak, president of the Americas for Warner Bros. since 2008, will be the new president of Redbox. A "leadership transition" saw former president Anne Saunders leave in December, and Outerwall CEO J. Scott Di Valerio cited Horak's experience and relationships "growing DVD, Blu-ray, video game and digital sale" as reasons he's perfect for the spot he's taking over on March 17th. Other than executive changes at Outerwall's other businesses (Coinstar and ecoATM), we're not seeing any immediate changes, and Redbox's most recent numbers seem on track, with revenue for Q4 that was slightly higher than the same period last year. The most important new business is the Redbox Instant streaming/kiosk combo effort, although it hasn't gained much traction yet against competitors like Amazon Prime Video, Hulu Plus and Netflix. The company says Redbox Instant activity increased as it launched on new platforms like Windows Phone, Xbox One and PS4, but it still didn't have any exact data to share. As far as disc rentals Redbox is focusing on Blu-ray now, since 55 percent of its rental customers have a Blu-ray player. It's already trying to upsell customers to more expensive rentals on its website and app, and plans to roll that out directly on the kiosks soon. The investor call didn't reveal much in the way of a new direction for Redbox, but we're hoping the next step is squeezing a dedicated rental return slot onto the boxes.
EcoATM offers instant money for your old phone, we go hands-on at CTIA E&A 2011 (video)
Old-fashioned ATM meets modern-day phone recycling program. That's the idea behind EcoATM, a startup aimed to help reduce electronic waste and beef up your wallet at the same time. Of course, it's not a new concept: phone recycling programs have been around for a while now, helping you stay green by giving you some green. Trading in an old phone for the almighty dollar, however, typically involves filling out paperwork, printing labels, shipping the device to the facility and waiting for four weeks for a check. EcoATM's goal is to eliminate all of that in favor of a simple 5-minute process that ends with cash in-hand. The company has machines set up in popular shopping malls in various cities across the country, ready to help you part ways with your old device. Take a gander at a gallery and the full demonstration below. %Gallery-136313% Zachary Lutz contributed to this report.
