Bellevue-based Coinstar, which operates coin counting and movie rental kiosks, is considering a corporate name change to Outerwall. The new name is meant to “signify innovation and pushing the walls of retail out into a new dimension through current and future automated retail solutions,” the company noted in a press release.
Coinstar, perhaps best known for its Redbox movie rental kiosks, may need to push the envelope when it comes to new businesses, especially as Netflix, Amazon and others tout their streaming video services.
Coinstar also announced today first quarter revenue of $547.7 million, up just 1.1 percent compared to the same period last year. Redbox accounted for $507.9 million of the company’s revenue, though the slight jump in revenue was tied to new kiosk installations.
Coinstar boss Scott Di Valerio told the Associated Press that he believes Redbox can grow by 5 percent to 10 percent annually during the next three years.
Meanwhile, profits at Coinstar fell to $22.6 million during the first quarter, down from $53.6 million. Analysts had already anticipated the slowdown, brought on in part by Netflix, and as a result Wall Street gave Coinstar’s stock a bit of a boost today as a result. (Previously: Netflix to offer $11.99 plan, will allow four simultaneous streams).
Shares of Netflix also have been on the rise after its earnings report this week exceeded Wall Street estimates. Netflix, which added two million Internet customers last quarter, now boasts 29.2 million streaming subscribers.