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RedBox-LogoThis is generally not a good sign for a company. Outerwall, corporate parent of Redbox, announce today that its long-time CEO, Scott Di Valerio, has has stepped down from his position and resigned from the company’s board of directors. Until Di Valerio’s replacement is found, board member Nora Denzel will fill the interim CEO spot.

Eric Wold, analyst with B. Riley & Co., stated that Redbox’s recent price increase did not have the intended affect of boosting the company’s bottom line, which didn’t reflect well on Di Valerio. Said Wold:

“Management noted to us that the price increase was meant to offset secular declines in the rental business and it seems as though the declines are worse than expected with this outlook – and the end result the CEO being terminated,”

Should Redbox fans breathe a sigh of relief that there will be new blood at the top, or is this leadership shakeup a sign of darker days to come?

[via Home Media Magazine]

6 Responses to “CEO of Redbox Parent Outerwall Steps Down”

  1. Visitor [Join Now]
    Danofive0 [visitor]

    Just my two bits….
    I think Red Box is sinking and fast. And that can’t patch the leak.
    1. They had to take a good hit when the streaming deal went south.
    And that hit cost them good. Even with a good Tax Wright off that took on it.
    As a loss. They still took a good hit.. A big one…..
    Then with the price increase. That did not set good with about 90% of the people that use the Box.
    Then I see some movies that they say they have out. But they are not at the Box??
    Red Box needs to do something and fast… Are they may end up going the Block Buster way… And yes it can happen..

  2. Visitor [Join Now]
    Vernon Dent [visitor]

    A classic case of…
    ‘The rats are the first to leave a sinking ship’!

    redbox’s niche is to pander to those who don’t: have, want nor can afford subscription services.

    Once it knows its place, its just a question of continually cutting costs.

  3. Visitor [Join Now]
    tinybrat [visitor]

    Eric Wold is not too into listening on investor calls or reading investor data apparently…. ” the declines are worse than expected with this outlook ” is what he states, however, I’m told as an investor that Outerwall’s 4th quarter was actually stronger than anticipated. Eric Wold has had nothing good to say on this company for over a year. You want to see how good a company is doing? Do your homework, research their data and make your own decision.

  4. Member [Join Now]
    MarkZLip [markzlip]

    Too much fixing a good thing, causes it to fail

  5. Member [Join Now]
    jonmac

    If the reason for him getting the boot was truly because of lost revenue, and if lost revenue is mostly from the price increase, the yes, he deserves the boot. He pissed off his customer base. Of course the streaming venture with Verizon was a huge mistake. But I’m not going to be some kind of know-it-all, they had to try streaming – they just did it wrong.

  6. Visitor [Join Now]
    Randy Gollihugh [visitor]

    Since the last increase I wait for it new releases to get to netflix or I buy. I use to be a big fan of redbox but with other options I have they are out of the picture.