Redbox 2005 Annual Report Download - page 2

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Coin
Services
E-Payment
Services
DVD Rental
Services
Entertainment
Services
International
Services
...continued inside back cover
Fellow Shareholders:
Coinstar made great strides in 2005 to further implement our vision for the front of
retail stores. Two years ago when we were providing a single product – self-service
coin counting – we saw the potential for the retail area between the cash register and
the store’s front door that we now call the 4th Wall™ space. Today, Coinstar is positioned
as a leader at the front of the store. Our 4th Wall program clearly differentiates us
from our competition and has been the focus of much of our business development
this past year, and we expect it will continue to drive our growth as we move forward.
Product Expansion
Coinstar is the leading supplier for two of the top five highest performing categories at the front of the
store – self-service coin counting and entertainment services – and we continue to expand our offerings.
This past year we launched our Coin to Card™ program following a successful pilot with Starbucks®
.
This innovative service further expands Coinstar’s leadership position in self-service coin counting by
offering a no-fee service to consumers who choose to convert their loose change to a gift card. At the
close of the year, we had more than 5,800 Coinstar kiosks equipped with the service and a range of gift
cards and eCertificates for users to choose from. New gift card partners in 2005 included Amazon.com®
,
Borders®
, Hollywood Video®
, Linens ‘n Things® and Pier 1 Imports®
. In addition, we added
another product line to our 4th Wall portfolio. Through an investment in Redbox
Automated Retail, LLC with McDonald’s Ventures, and a stake in Video Vending
New York, Inc. (d/b/a DVDXpress), Coinstar now offers DVD rental kiosks to
its customers. Redbox™ is the leading self-service DVD rental kiosk in the
United States, and provides consumers the best value and most convenient
DVD rental service on the market today.