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Tomorrow Coinstar shares were affected by their earnings that came out yesterday after the -- soaring today.
After reporting earnings yesterday afternoon right here on the show and that on the heels of announcing a major partnership.
Between red box its dvd rental business and Verizon in an effort to get into the fast growing video streaming feel -- it.
We sat down with -- -- CEO Paul Davis earlier today to talk about company's earnings.
The partnership -- with Verizon also how the company plans to take on Netflix take a look.
Red box continues to be the marketshare leader the last two quarters -- we're really pleased with this announcement with Verizon yesterday.
The joint venture really we think about it is -- that the two great companies Verizon brings the technology brings the contents and millions and millions of consumers.
And then red box of course brings the leadership in dvd rental.
And 35000 locations so very low consumer base we think it's a great partnership is gonna do very -- we now move into the -- space now some folks.
Think about what's happened in history they think of what happened the VCR of course you gave way to the DVD.
Some people are wondering whether the DVD will give way completely.
The way of streaming is DR DVDs gonna become the dinosaur of of the video wage.
In fact if you look across America it's still by far the predominant way to consumers like to view movies is that -- physical.
How we think there's a very long tail and we have market share leadership there we have thirty million consumers that's that's how they like to consume.
And there's a lot of overlap our consumer with new people in the in the download space.
So that consumers have told us -- what they'd like forced -- now do is to expand into individual offerings so we think this Verizon and red box partnerships going to be perfectly set up.
But what's called that would really -- -- taking on Netflix and possibly Amazon and Wal-Mart but with the screen aspect of it.
Every analyst -- every shareholder wants to know what kind of content deals are -- I'm going to assume that you're gonna say we can't talk about it right now but are you talking directly to studious.
-- exactly right we can't give a lot of color at this point in time on the content deals -- strike and one of the things that -- Verizon brings the table is access to contests to go play the lead on working directly with the studios as they negotiate those deals what if the studios decide to stream directly to something like apple TV for example does that cut you out.
Well -- it's still the -- -- the footprint that we have of the 35000 kiosk and -- -- consumer base coupled with Verizon consumer base.
We think we're well positioned to be the portal to both physical.
An additional when you're looking at what you be able to offer through this Verizon red -- deal is this new release stuff or is this sort of B movies that we've all seen before on Arnold movie channels.
It's a great question the the joint venture is really designed to give consumers exactly the entertainment choices they want how they want at any -- anywhere.
So if you think about red box would be really focused on new release content.
In the physical space at the kiosks and and likely the digital offerings might be catalog offerings or wide array of different possible -- -- -- We've mentioned apple a couple of time -- times Verizon course -- -- -- on any.
Roll with you guys lose any deal that you guys -- cut with apple TV there.
-- new product is gonna be extraordinary apparently if you believe the hype.
Yeah our joint venture partnership is with Verizon were very pleased to have them as a partner given everything that they bring to the table so.
As we get closer to the the launch the second half the you'll get a lot more do you -- you haven't ruled out piggybacking on Verizon's at all it's not at this point in time could talk about pricing.
Actually we're not talking about price in the what I can tell you though is if you look at red box and some of the core attributes.
Value and convenience what -- Netflix you wrong.
They are not really here to talk about our competition all I know is what we're trying really hard to offer both you know what Netflix is offering.
The same time having in this instant.
The access to content through our boxes so you get the best of both worlds both physical and digital but wasn't my question to you from some of the things they did grow the thing that we.
Really always try to concentrated -- red box is to listen closely to our consumers.
We -- went through price increase and we went to great lengths to make sure that we've breached again happened and really tried to keep our consumers are red box very close.
And those are changes that need to be made we we -- to adapt to those changes what do you think is gonna happen in the economy in the next year and a half.
Or an organization that that -- start red -- -- were hiring a lot of people solve new things -- are working well for our company.
We stay close took David and I brought a whole bunch of coins if you wanna head out for us you -- -- deal.