While Coinstar CEO Paul Davis declined to reveal Redbox’s streaming partner in its upcoming venture during his recent Q3 financials commentary, he did report that the company was in discussions with multiple parties.
The Street has run an interesting article discussing five potential Redbox streaming partners, with commentary from Wedbush Morgan analyst Michael Pachter. The list, along with Pachter’s opinion on each candidate, is after the jump.
“While we think an acquisition of Coinstar by Netflix would immediately reduce Netflix’s exposure to postage, we don’t see the partnership in the cards,”
“We see a partnership with Apple as being immensely beneficial to Coinstar, but see a partnership with Coinstar as in conflict with Apple’s core business of selling hardware,”
“We think that Wal-Mart would gain more from a partnership than would Coinstar, as the Vudu content offering is not as deep as any of the others on the list, and we are not certain that Wal-Mart has keen interest in competing head-to-head with Netflix,”
“[Sonic] doesn’t have a particularly strong brand, nor a large consumer base . . . We would view a partnership with Sonic as a non-event, and do not believe it would further Coinstar’s stated goals.”
“We think a partnership with Coinstar would be mutually beneficial, as it would allow Amazon to leverage its large customer base and to compete head-to-head with Netflix,”
What say you, Insiders? Is Pachter right in agreeing with Eric Wold that Amazon makes the most sense as a streaming partner for Redbox?
(via The Street)