Coinstar No. 15 on 'Fortune' Fastest Growing20 Sep, 2012 By: Chris Tribbey
Redbox parent Coinstar has jumped from No. 22 in 2011 to No. 15 this year on Fortune magazine’s 100 fastest growing companies. This is the third straight year Coinstar has made the list, ranked No. 61 in 2010.
“Coinstar is reimagining retail through its automated kiosks which deliver products and services that are simple, convenient and affordable," said Coinstar CEO Paul Davis. "Being recognized by Fortune for the third year in a row validates that our vision increasingly resonates with consumers and creates unprecedented value for retailers."
Meanwhile, Coinstar CFO J. Scott Di Valerio, speaking at the Goldman Sachs 21st Annual Communacopia conference Sept. 20, said Redbox will continue to see its DVD rental market share rise in the coming years.
“As the [brick-and-mortar] stores close we’re certainly taking on [share],” he said. “We’ve been able to continually grow our market share year to year, and we believe we can continue that growth out over the next several years.”
Di Valerio said that the upcoming Redbox Instant service, which will pair DVD rentals at kiosks with online streaming supported by Verizon, will be a good opportunity for studios to delve into their catalog, and for Redbox to offer those titles that it otherwise couldn’t fit in kiosks.
But, he also added that for all the discussion of streaming and the decline in physical disc, DVD isn’t going anywhere anytime soon.
“For the studios it’s a key part of their business still, and depending on which numbers you look at, it’s 30% to 40% of their revenue,” he said. “That’s a big chunk of revenues when you think about theatrical and the TV sales and streaming and all that. That’s a pretty big number to try and transition from.”
Streaming and digital may be the wave of the future, Di Valerio said, but “there’s still a large part of the population that likes the physical and doesn’t necessarily want to be streaming across their TVs or even have their TVs connected.”