What's Next for Outerwall?
The Motley Fool is on the road in Seattle! Recently we visited Coinstar -- now officially renamed Outerwall -- to speak with CFO-turned-CEO Scott Di Valerio about the 22-year-old company's well-known coin-cashing machines, as well as its more recent acquisition of Redbox, and future initiatives to expand into other aspects of the automated retail market.
In this video segment, Scott reveals some digital offerings the company is developing to complement its physical services, including PayPal options on Coinstar machines, gift card exchanges, and event ticketing through Redbox. The full version of the interview can be watched here.
A full transcript follows the video.
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Austin Smith: What's next in the pipeline for Coinstar? You guys obviously are rolling out a lot of new devices, looking at new automated kiosks. What else is there for users, that they should be looking forward to over the next few years?
Scott Di Valerio: We're going to continue to look and bring great automated retail solutions. Certainly, with our coin line of business we are rolling out the PayPal, so that's a great opportunity for people to lever their PayPal accounts and do some things they want to do there.
We also have a business in the coin business called Gift Card Exchange, where you can exchange your gift cards that you've been getting for years, at stores that you might not go to, or stores that you have a little bit of money left on those cards, and get those turned in for cash.
We think that's going to be a very interesting business for us. We're starting to roll that business out. There's around 50 kiosks in the market today, and we'll expand that out over the next year to capture that, and also be looking to do that with both your physical gift card, but also your digital gift cards, to be able to be the place where you're turning in your gift cards and then we're remonetizing those out.
As I look at Redbox, for example, we're obviously beginning to roll out Redbox Instant in a broader fashion, along with Verizon . We're testing tickets out, and we're putting in some very good CRM and loyalty programs that will roll out in the third and fourth quarters that will continue to extend out that Redbox brand and value; simplicity, convenience, and entertainment.
We are the No. 1 place for people to watch new release content. We want to be the No. 1 place that people come to for overall entertainment.
If I look at the business broader, we think there are some great opportunities to bring new products into the marketplace, but also to extend them out, both from a physical perspective as well as from an online perspective, and keep marrying those two things up as we go forward.
The article What's Next for Outerwall? originally appeared on Fool.com.Austin Smith owns shares of eBay. The Motley Fool recommends and owns shares of eBay. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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