Oct. 6, 2014, 8:23 AM
Oct. 4, 2014, 5:14 PM
- Redbox Instant, a streaming video service operated by Verizon Communications (NYSE:VZ) and Outerwall's (NASDAQ:OUTR) Redbox, will shut down next week because the venture has not been as successful as hoped.
- The JV launched in March 2013, and was viewed as a potential rival to Netflix (NASDAQ:NFLX). The service provided subscribers with access to a streaming library, plus the option to obtain credits toward DVD/Blu-ray discs that are available at Redbox kiosks. Customers could also rent or buy titles electronically from a separate library, with rentals starting at $3 for 48 hours, and purchases starting at $9.
- Redbox Instant by Verizon has not disclosed subscriber figures.
- Rumors about a shutdown first surfaced about a week ago; the service had disabled new sign-ups for three months due to a credit card fraud issue.
Sep. 22, 2014, 10:06 AM
- Shares of Outerwall (OUTR -3.5%) slip after B Riley tags the stock with a Sell rating.
- The investment firm also took its price target down to $47 from $54.
- On the other side of the trade, Piper Jaffray is in defense mode. Piper thinks Outerwall will only face a "slow bleed" of business, instead of the disaster some analysts forecast for the retailer. Shares are kept at Overweight on the premise they are over-sold.
Jul. 31, 2014, 4:05 PM
Jun. 18, 2014, 5:36 PM
May 1, 2014, 4:09 PM
Apr. 10, 2014, 4:46 PM
- Barry Rosenstein's Jana Partners has cut its Outerwall (OUTR) stake to 4.9% from 8.4%. The firm once owned 13.5% of the Redbox parent. (13D)
- Outerwall shares are up over 30% since Jana's original Oct. 4 disclosure. The company announced a major restructuring (widely believed to be at Jana's urging) in December.
Feb. 7, 2014, 9:10 AM
Feb. 6, 2014, 5:44 PM
Feb. 6, 2014, 4:47 PM
- Redbox gets a new president with the addition of Mark Horak, most recently president of the Americas at Warner Bros. Home Entertainment.
- Press release
- After completing $100M in share repurchases during Q4, company tomorrow plans to launch a $350M Dutch auction tender offer for more stock. The auction is expected to brgin with a price range based on a 5-20% premium to today's close of $63.64.The repurchase authorization last week was lifted to $650M from $500M.
- Turning to Q4 operations, Redbox revenue of $496.4M up 1.7% from a year ago. Operating income of $111.3M up 39.2%. Gross margin of 58.5% up 460 basis points.
- Coinstar revenue of $80.7M up 8.4%, with same store sales up 5.9%. Operating income of $30.8M up 17.2%.
- New Ventures revenue of $16.6M up from $300K a year ago, thanks to ecoATM acquisition.
- Free cash flow of $142.6M compares to $77.3M a year ago.
- FY2014 core EPS guidance of $5.16-$5.76 on revenue of $2.358B-$2.498B. Free cash flow between $200M-$240M compares to $166.4M in 2013.
- Press release, Q4 results
- CC at 5 ET
- OUTR +9.6% AH
Feb. 6, 2014, 4:16 PM
Feb. 6, 2014, 12:10 AM| Feb. 6, 2014, 12:10 AM | 4 Comments
Feb. 5, 2014, 5:35 PM| Feb. 5, 2014, 5:35 PM | 2 Comments
Jan. 7, 2014, 11:57 AM
- Online purchases of movies rose 47% to $1.12B in 2013 in the U.S., according to Digital Entertainment Group. The striking growth rate has calmed fears that consumers would opt to wait for rental windows to open up before buying movies.
- Streaming subscription rentals rose 32% to $3.16B during the period.
- Kiosk DVD sales slipped 1%, but the aging business still commanded $1.9B in sales. Brick-and-mortar rentals were off 14.3% to $1.042B.
- If there was a surprise, it might be the relatively slow pace of VOD movie sales, up only 4.8% to $2.11B.
- Full report (.pdf)
- Related stocks: NFLX, OUTR, VZ, CMCSA, CHTR, CVC, TWC, DIS, FOXA, DISH, DTV.
Jan. 2, 2014, 9:55 AM
- Jana Partners is still behind the scenes at Outerwall (OUTR -0.3%)., according to SEC filings from the firm.
- The investment firm only trimmed 55,594 shares from its last filing and still holds 3.72M shares in its back pocket.
- Much of the enthusiasm over Outerwall is predicated on Jana pushing management into some shareholder-friendly decisions.
Dec. 13, 2013, 12:55 PM
- New polling from Harris Interactive confirms that consumers streaming video content prefer the practice of binge viewing.
- The news isn't a shocker to Netflix (NFLX -0.2%) and Amazon (AMZN +1.3%) which have been pointing toward their own viewing data for quite a while.
- Redbox Instant (VZ, OUTR) could be the next streaming service to bring on TV shows for binge viewing, according to media buzz.
- The read-through for broadcasters (CBS, AMCX, FOXA, DIS, CMCSA) is mixed. Advertising rates could suffer if more viewers are willing to wait until series are available for streaming, but the payoffs for quality content are getting higher and higher. Just this week, CBS CEO Les Moonves tipped off that Amazon paid $700K per episode for streaming rights to Under the Dome - while AMC Networks knows full well that without Netflix hit show Breaking Bad would have broken down.
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