BELLEVUE, Wash., Nov. 24, 2014 /PRNewswire/ -- Outerwall Inc.
(Nasdaq: OUTR), the parent company of Redbox, today announced
Redbox daily rental price increases in the U.S. Starting
December 2, 2014, the daily rental
rate for DVDs will increase from $1.20 to $1.50, and
the daily rental rate for a Blu-ray Disc® will increase
from $1.50 to $2.00. Beginning January
6, 2015, the daily rental rate for video games will increase
from $2.00 to $3.00. Outerwall selected the price points after
several months of market testing.
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"With new-release movies for $1.50
a day, Redbox remains the best value in new-release home
entertainment. Consumers can continue to expect access to the
newest movies months before streaming subscription services and
daily prices that are still lower than Video On Demand," said
J. Scott Di Valerio, Outerwall's
chief executive officer. "The pricing adjustments announced today
will allow Redbox to continue to offer consumers high quality
movies and games while making investments to enhance the customer
experience."
Due to the timing in the quarter, Outerwall is not revising its
fourth quarter 2014 guidance. While the company expects an adverse
impact on Redbox rental volume as a result of the national rollout
of the price changes, Outerwall believes the price increases,
coupled with Redbox's network optimization initiatives, will help
offset future declines in the physical rental market.
The company expects to provide additional details on the impact
of the price increases when it reports its fourth quarter 2014
results and provides 2015 annual guidance on its fourth quarter
2014 earnings call in early February
2015.
"Today's announcement represents the first time Redbox has
raised prices on Blu-ray discs and video games and only the second
time in more than 12 years that we've raised prices on DVDs," said
Di Valerio. "We look forward to
continuing to provide consumers with tremendous access to the
new-release movies and games they love in the formats they
want."
Prices may vary in certain places. For more information about
the price changes and ways for consumers to save on movie and game
nights visit: www.redbox.com/pricechange.
ABOUT OUTERWALL INC.
Outerwall Inc. (Nasdaq: OUTR) has more than 20 years of
experience creating some of the most profitable spaces for their
retail partners. The company mission is to create a better everyday
by delivering breakthrough kiosk experiences that delight consumers
and generate revenue for retailers. As the company that brought
consumers Redbox® entertainment, Coinstar®
money services, and ecoATM® electronics recycling
kiosks, Outerwall is leading the next generation of automated
retail and paving the way for inventive, scalable businesses.
Outerwall™ kiosks are in neighborhood grocery stores, drug stores,
mass merchants, malls, and other retail locations in the United States, Canada, Puerto
Rico, the United Kingdom,
and Ireland. Learn more at
www.outerwall.com.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. The words "believe," "estimate," "expect,"
"intend," "will," "anticipate," "goals," variations of such words,
and similar expressions identify forward-looking statements, but
their absence does not mean that the statement is not
forward-looking. The forward-looking statements in this release
include statements regarding Outerwall Inc.'s anticipated operating
results, Redbox's rental price increase, and the physical rental
market. Forward-looking statements are not guarantees of future
performance and actual results may vary materially from the results
expressed or implied in such statements. Differences may result
from actions taken by Outerwall Inc. or its subsidiaries, as well
as from risks and uncertainties beyond Outerwall Inc.'s control.
Such risks and uncertainties include, but are not limited
to,
- Changes in rental prices,
- competition from other entertainment providers,
- the ability to achieve the strategic and financial
objectives for our entry into new businesses, including ecoATM,
SAMPLEit and Redbox Instant™ by Verizon,
- our ability to repurchase stock and the availability of an
open trading window,
- the termination, non-renewal or renegotiation on materially
adverse terms of our contracts with our significant retailers and
suppliers,
- payment of increased fees to retailers, suppliers and other
third-party providers, including financial service
providers,
- the timing of new DVD releases and the inability to receive
delivery of DVDs on the date of their initial release to the
general public, or shortly thereafter, or in sufficient quantity,
for home entertainment viewing,
- the effective management of our content library,
- the timing of the release slate and the relative
attractiveness of titles in a particular quarter or year,
- the ability to attract new retailers, penetrate new markets
and distribution channels and react to changing consumer
demands,
- the ability to generate sufficient cash flow to timely and
fully service indebtedness and adhere to certain covenants and
restrictions,
- the ability to adequately protect our intellectual property,
and
- the application of substantial federal, state, local and
foreign laws and regulations specific to our business.
The foregoing list of risks and uncertainties is
illustrative, but by no means exhaustive. For more information on
factors that may affect future performance, please review "Risk
Factors" described in our most recent Annual Report on Form 10-K
and any subsequent Quarterly Reports on Form 10-Q filed with the
Securities and Exchange Commission. These forward-looking
statements reflect Outerwall Inc.'s expectations as of the date of
this press release. Outerwall Inc. undertakes no obligation to
update the information provided herein.
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SOURCE Outerwall Inc.