Outerwall Inc. provides automated retail solutions. The company’s segments include Redbox, Coinstar, and New Ventures. Redbox This segment consists of self-service kiosks where consumers can rent or purchase movies and video games. Within its Redbox segment, the company operates 43,680 Redbox kiosks, in 36,140 locations, where consumers can rent or purchase movies and video games. Its Redbox kiosks are available in every the U.S. state, Puerto Rico, and Canada, and are installed primarily at grocery stores, mass retailers, drug stores, restaurants and convenience stores, including Walgreens, Walmart, Kroger and 7-Eleven. The company’s consumers can rent a movie or video game from one location and return their rental to any of its Redbox locations. Additionally, its consumers may reserve a movie or video game online or through a smart phone application and pick it up at the selected Redbox location. The company’s content library consists of movies and video games available for rent or purchase. It obtains its movie and video game content through revenue sharing agreements and license agreements with studios and game publishers, as well as through distributors and other suppliers. Coinstar This segment consists of self-service coin-counting kiosks where consumers can convert their coins to cash or stored value products. The company also offers self-service kiosks that exchange gift cards for cash under its Coinstar Exchange brand. Within its Coinstar segment, the company owns and operates 21,340 kiosks in 20,250 locations. Consumers feed loose change into coin-counting kiosks, which count the change and then dispense vouchers redeemable for cash or, in some cases, issue stored value products at the consumer’s election. Included in its kiosk total is a limited number of kiosks that exchange gift cards for a voucher redeemable for cash. The company’s Coinstar kiosks are available across the U.S., where they provide a convenient and trouble-free service to retailers, such as Kroger and Walmart, and in Canada, Puerto Rico, Ireland and the United Kingdom. New Ventures This segment focuses on identifying, evaluating, building, or acquiring and developing self-service concepts in the automated retail space. The self-service kiosk concept the company is exploring in the marketplace is its consumer product sampling concept SAMPLEit, in the Beauty and Consumer Packaged Goods sector. The company owns ecoATM, Inc. (ecoATM). In the Electronics sector, the company builds the ecoATM, business which provides an automated self-service kiosk where consumers can recycle mobile devices for cash and generates revenue through the sale of devices collected at its kiosks to third parties. New Ventures concepts and ecoATM are regularly assessed to determine whether continued funding or other alternatives are appropriate. Strategic Investments and Joint Venture The company makes strategic investments in external companies that provide automated self-service kiosk solutions. In the Health sector, the company has invested in SoloHealth, Inc. Seasonality The company has historically experienced seasonality in its revenue from its Redbox segment. December and the summer months have historically been high rental months. April has been a low rental month due, in part, to retail release timing in connection with the Academy award ceremonies and the Easter holiday that historically has provided stronger content and resulted in higher rentals in March. September and October have been low rental months, due, in part, to the beginning of the school year and the introduction of the new fall television season. The company has licensing agreements with certain studios that contain delayed rental windows. This has shifted the availability of titles affected by the delayed rental windows relative to historic patterns. Its Coinstar segment generally experiences its highest revenue in the second half of the year due to increased retailer foot traffic and holiday shopping in the fourth quarter (year ended December 31, 2014) and an increase in consumers’ desire for disposable income in the summer months. In its New Ventures segment, seasonality generally peaks during the summer months, declines in the fourth quarter and remains flat into the following quarter before increasing in late February. History The company was founded in 1991. It was incorporated in Delaware in 1993. The company was formerly known as Coinstar, Inc. and changed its name to Outerwall Inc. in 2013.
outerwall inc (OUTR:NASDAQ GS)
1800 114th Avenue SE
Bellevue, WA 98004
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