LEADER
WHO??
Amanda Brunssen, Justin Gonner,
Staci Sullivan
OVERVIEW
 Coinstar, Inc. is a provider of automated retail solutions, which offers
convenient products and services.
 The company‘s offerings include its Redbox business, where consumers
can rent or purchase movies and video games from self-service kiosks
and its Coin business, where consumers can convert their coin to cash
or stored value products at self-service coin counting kiosks. Its New
Ventures business is focused on identifying, evaluating, building, and
developing self-service concepts in the marketplace.
 The company has approximately 33,300 DVD kiosks and 18,900 coin-
counting kiosks in supermarkets, drug stores, mass merchants, financial
institutions, convenience stores, and restaurants.
CSTR CONT…
 Market Cap- 1.59 billion
 No expected splits in the near future
 Do not pay a dividend.
 Retain all future earnings to fund development and growth.
 Retire debt obligations
 Buy back common stock
WHAT’S GOING ON IN THE INDUSTRY
 Netflix ended an exclusive deal with Epix
 Amazon just made a 3 year deal with will contribute 3000 movies to its
video streaming service
 Netflix-$96/year subscription, Amazon-$79/year subscription
 Epix may join forces with Apple and Google
 Google users could access Epix streaming through Android
 Apple users could access Epix streaming through iPhones and iPads, etc.
SWOT ANALYSIS
 Strengths-Redboxes in nearly every city, 24 hours.
 Convienece
 High brand awareness through strategic placement in mass retailers
 Inexpensive, appeals to a large target segment
 Weaknesses-Majority of revenue comes from Redbox.
 Does not use TV, print or other innovative marketing channels
 Opportunities-Currently don’t pay dividends.
 Other 4th wall placements such as dollar stores
 Diversify
 Threats- Licensing agreements with movie studios being terminated before
the contract length
 Cashless society
 Free ways of watching movies such as youtube or illegal websites
COMPETITORS
 Netflix- Started in 1999.
 Offers streaming and expanding in the international market
 More than 7000 movies
 Long wait for new releases
 Poor customer service
 Blockbuster- Been around since 1985
 Can return any online order to local blockbuster stores
 Need two separate accounts to rent online and in the store
 Movies rented in the store cannot be returned by mail
CSTR COMPETITIVE ADVANTAGE
 Redbox and Verizon are teaming up to offer an online streaming service
to directly compete with Netflix
 New customer and product segments, offering to new geographies with the online
streaming
 Verizon controls the pipeline for 14% of U.S. households through internet and
telephone services
 Only taking a majority stake in the new venture. Verizon controls 65% and CSTR
initial investment is $14 million which is not much for a $2 billion company
 Available to access 24 hours a day
 Don’t have to sign up for a membership
 If you forget to return the DVD the next day it is only another $1 for
each day you have it
HISTORY
 Jens Molbak, founder of Constar, was a graduate
student at Stanford University when he came up
with the idea.
 Two years after he thought of the idea, two
classmates joined him to make Coinstar
successful.
 They creating a machine that could quickly count
change and filter out the foreign coins, screws,
paper clips, and other debris that is often found in
piggy banks and coin jars.
HISTORY CONTINUED…
 1992 is when the machine was going to be tested in the real
world and the first machine was installed in four supermarkets in
San Francisco.
 Consumers loved the coin machines and now today they are
found in grocery stores, drug stores, and other locations across
the United States where people shop or go by.
 In 2001 Jen stepped down as chairman of the company but still
remains within the company.
HISTORY CONTINUED…
 In 2002 a division of McDonald’s
developed the first Redbox.
 Coinstar executives recognized the
alignment with its automated retail
strategy and they made an
investment in 2005.
 In 2009 they completed their
acquisition and since then Redbox
has grown to be one of the top
movie rental companies.
MORE HISTORY
 In 2010, Redbox made Blu-ray Discs available and then one year later
video games became available.
 in 2012, Redbox has over 2 billion total units rented.
 The Redbox consumer base is continuing to grow and also there is
mobile apps available that makes it easy for people to get movies and
game on the go.
 Coinstar continues to explore and test new automated retail solutions
that will make consumers lives easier.
DO YOU KNOW YOUR COINSTAR?
How many Redbox’s are in
Dubuque and where are they
located?
How many Coinstars are in
Dubuque and where are they
located?
ANSWERS

Redbox: 12
 Walgreens 20th street (2)
 Hy-Vee at Locus Street (2)
 Walgreen's on JFK (4)
 Hy-Vee dodge street (1)
 Wal-Mart (1)
 Hy-Vee at Asbury (2)
CoinStar: 1
 Walmart (1)
CEO, PAUL DAVIS
 Paul joined Coinstar in April 2008 as chief operating officer
 In 2009 he became the chief executive officer
 He serves on Coinstar’s Board of Directors.
 Global business leader
 Paul brings 30 years experience in retail and consumer packaged goods.
 Past experience, various sales and executive management positions
 Chief executive of Kettle Foods
 President of Starbucks North America
 President of PepsiCo’s Frito-Lay Company in Canada.
 Also various positions with Procter and Gamble.
PRESIDENT AND CHIEF OPERATING
OFFICER, GREGG KAPLAN
 In 2009, Gregg joined Coinstar as president and chief
operating officer
 Past experience
 Chief executive officer of Redbox Automated Retail, LLC, the
leading DVD rental kiosk company, which is now a wholly-owned
subsidiary of Coinstar.
 McDonald’s Corporation working in strategy and business
development group
 he helped McDonald’s create and build new businesses.
 Gregg’s other experience includes:
 working as an investment banker at Furman Selz where he focused on
corporate transactions of media and entertainment companies.
CHIEF FINANCIAL OFFICER, J. SCOTT DI
VALERIO
 January 2010, Scott joined Coinstar.
 In March 2011 he became chief financial officer.
 In addition to his leadership of the finance organization,
Scott also leads the company’s corporate information
technology and supply chain functions. He has over 25
years finance, operations and management experience.
 Past Experience
 President of the Americas for the Lenovo Group Limited (a leading
computer manufacturer).
 Senior positions at Microsoft Corp. as corporate vice president of
Microsoft’s OEM division and as corporate vice president of finance
and administration and chief accounting officer.
 Management positions at The Walt Disney Company and Mindwave
Software Inc.
 Partner at PricewaterhouseCoopers.
FINANCIAL STATEMENT
NFLX
No
CSTR MARKET STATUS
CSTR has the lowest PEG ratio in the Specialized
Consumer Services Industry
INVESTOR QUESTIONS
“EASY, FAST, AND INCREDIBLY
CONVENIENT.”
 Great PEG (.57) ratio and EPS. Best in the industry
 Top growth stock in the industry. LEADER
 Small market cap with plenty of room to grow and other markets to
expand.
 How many have rented a DVD in the last 6 months?
 Streaming issues? How many people actually stream?
HOLD!