outerwall
Latest
Redbox is reportedly giving internet video another shot
Remember Redbox's first stab at online video? You'd be forgiven if you didn't. The whole affair lasted about a year and a half before low adoption and payment snafus led Redbox to call it quits. However, the company appears ready to give it another try. Variety's tipsters have leaked details about Redbox Digital, a service that would let you buy and rent movies across PCs, mobile devices and TV add-ons like Roku boxes. It'd tie closely with both the company's website and its existing mobile apps, and every movie you grab would count towards Redbox's loyalty program.
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 Instant's streaming video service shuts down on October 7th
If you thought that Redbox Instant would have trouble competing against a streaming video behemoth like Netflix, you were right. The Verizon-backed service is telling customers that Instant will shut down just before midnight on October 7th, roughly a year and a half after it got off the ground. Should you be a customer, you'll get a notice about any relevant refunds on October 10th. The closure isn't entirely surprising -- Outerwall (Redbox's parent company) wasn't happy with Instant's subscriber numbers, and a credit card fraud incident prevented it from taking new customers for three months. Still, this isn't good news if you liked Redbox's unique hybrid of online and kiosk-based rentals. [Thanks, Mike]
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.
Redbox Instant channel launches for Roku players
Outerwall promised two months ago that it would offer Redbox Instant on Roku players, and the company is making good on its word by launching that channel today. The subscription movie service is now available for both the Roku Streaming Stick as well as conventional players ranging from the Roku LT to the Roku 3. There aren't any visible new features in the Roku version of Redbox Instant, but we doubt that many customers will complain -- they're getting cheap movie streaming through a similarly frugal media hub.
