Mitch Lowe Out as President of Redbox
Mitch Lowe has resigned as president of Redbox, the kiosk company announced on Thursday.
Lowe is leaving to pursue "entrepreneurial" and other interests, Redbox said. He will continue at the company until a successor is named.
News of Lowe's departure came as Redbox's parent company Coinstar forecast lower than expected earnings for the upcoming quarter.
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Coinstar said it projects revenues between $434 million to $436 million for its second quarter. Analysts had anticipated that the company would generate more than $445 million for the period.
On the positive side, it also Coinstar lifted its earnings projections for the year, estimating profits of $2.90 to $3.15 a share, up from its previous forecast of $2.75 to $3.10.
That didn't prevent shares of the movie rental chain from plunging more than 10 percent to $52.45 in after hours trading.
“I feel very fortunate to have been part of the extraordinary Redbox team that transformed the DVD rental business, and I look forward to working closely with the company to ensure a smooth transition in the days ahead,” said Lowe.
“As the market continues to evolve, I look forward to watching Redbox innovate and grow with it," he added.
Lowe began at Redbox in 2003 while the company was still owned by McDonald's. He was made chief operating officer in 2005, a year that coincided with Redbox's sale to Coinstar. He ultimately rose to become the company's president in 2009.
His tenure also saw Redbox caught up in several distribution lawsuits with studios such as Warner Bros., 20th Century Fox and Universal. Redbox ultimately signed agreements with several studios in which it agreed to honor a 28-day delay on when it would offer new releases for rental.
Prior to working at Redbox, he helped to found Netflix. As the subscription service's vice president of business development, he helped bring Netflix public in 2002.
Coinstar said it has commenced an external search to identify a new president.
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