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The History Of Redbox


Redbox, an Outerwall Inc. (Nasdaq: OUTR) brand, was founded within McDonald’s® Ventures, LLC, in 2002 as a vehicle to drive traffic and deliver additional convenience to McDonald’s consumers. The fully-automated DVD rental kiosks were first tested at McDonald’s locations in Denver beginning in 2004.  In 2005, McDonald’s expanded the test to more than 800 restaurants across five additional markets: Baltimore, Houston, Minneapolis/St. Paul, Salt Lake City and St. Louis.

In 2005, Outerwall Inc. (formerly Coinstar, Inc.), signed an agreement with McDonald’s Ventures, LLC, to invest in Redbox by leveraging its retail expertise to expand the Redbox footprint outside of McDonald’s restaurants.  The agreement made Redbox a separate company from McDonald’s and set the stage for Redbox to expand into grocery stores, mass merchant retailers, drugstores and convenience stores. In 2009, Coinstar, Inc. purchased the remaining stake of Redbox from McDonald’s and other minority interest holders.

Today, Redbox offers new-release DVD, Blu-ray Disc® and video game rentals through its network of conveniently located, self-service kiosks. Redbox has rented more than 3.7 billion discs and is available at about 35,000 locations nationwide, including leading grocery, drug and convenience stores, and select Walgreens, Walmart and McDonald’s locations. Redbox serves millions of unique customers nationwide, every week.At the end of the third quarter of 2014, Redbox’s digital-marketing channels span 36 million email subscribers, 26 million app downloads and 5.4 million SMS subscribers.

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