Redbox Execs Move Into Parent Company Coinstar6 Apr, 2009 By: Chris Tribbey
As announced April 6, two Redbox executives are taking main positions with parent company Coinstar.
Redbox CEO Gregg Kaplan will succeed Paul Davis as president and COO, while Redbox CFO John Harvey will take over the same roll at Coinstar, with previous six-year Coinstar CFO Brian Turner leaving.
“I’m delighted that Gregg Kaplan has joined the management team of Coinstar,” said Davis, who recently became CEO of Coinstar. “He’s an experienced and innovative executive, having pioneered the self-service DVD rental category and grown Redbox from a start-up in 2002 to the leader in the category, with a network of 14,000 kiosks in 48 states.
“His extensive knowledge of self-service operations and product expansion will be a great asset to the company, and we look forward to his continued contributions across all of our businesses.”
Mitch Lowe, COO of Redbox, will take over Kaplan’s duties as president, while Bill Unverzagt, Redbox VP and controller, will take over Harvey’s duties as VP of finance and chief accounting officer.
Coinstar, which announced in February that it would pay as much as $151 million in cash and stock to buy out the shares of Redbox co-owner McDonalds, has seen its stock double since December, to just under $33 as of April 6. Coinstar completed the acquisition, to own 100% of Redbox, in late February.
Revenue from DVD for Coinstar increased 179% in 2008 to nearly $400 million, compared to 2007, with DVD profits up $72 million during the same period, thanks mostly due to the installation of just under 6,000 new DVD rental kiosks. The company aims to install another 6,000-8,000 kiosks in 2009.