OAKBROOK TERRACE, Ill.,
July 15, 2021 /PRNewswire/ -- Redbox,
America's destination for affordable new-release movies and
entertainment, held an overview meeting with sell-side analysts on
Wednesday, July 14, 2021, during
which the Company's management team outlined its future growth
plans as a public company and its efforts to transform in-home
entertainment for consumers across physical and digital
channels.
"Over the last several years, we have built one of the most
trusted brands in entertainment, with a loyal customer base of more
than 39 million Redbox Perks members," said Galen Smith, CEO of Redbox. "We have made
incredible strides evolving with the entertainment industry and are
accelerating our digital transformation to offer consumers more
choice across the streaming and in-home entertainment market. As a
public company, we will be able to offer our entertainment-loving
customers and partners a multi-product experience that spans
physical and digital, addressing an important market gap as more
consumers cut the cord and look for new sources of affordable
entertainment."
As previously announced on May 17,
2021, Redbox entered into a definitive agreement to combine
with Seaport Global Acquisition Corp. (Nasdaq: "SGAM", "SGAMU," and
"SGAMW") ("Seaport Global Acquisition"), a publicly traded special
purpose acquisition company. The transaction, which is expected to
close in the third quarter of 2021, will result in Redbox becoming
a publicly traded company on Nasdaq under the ticker RDBX.
Redbox Poised for Long-Term Growth
During the event, Redbox's management team presented an overview
of the Company's Legacy and Digital businesses. As a reminder,
Redbox's Legacy business includes the Physical Kiosk business,
Redbox Entertainment and the Redbox Service business, which
provides best-in-class field service to other kiosk operators,
including AmazonHub and ecoATM.
Highlights of the topics covered at the Analyst Meeting
included:
Physical Kiosk Business Poised for Significant Recovery as
Movie Theaters Reopen, Full Content Release Schedules Return.
For many customers, Redbox serves as the only practical access
point to new release movies, with the Company offering the latest
content for less than $2 a night.
Redbox's physical business is driven by new movie releases, with
the COVID-19 pandemic severely impacting the number of new movies
released by studios. Over the past two years, there has been an
approximately 50 percent reduction at the box office as movie
theaters shut down and studios delayed releases and paused
production.
As theaters continue to open and distributors release new
movies, Redbox expects to see a build in the number of releases
from about nine each quarter in Q1 2021 and Q2 2021 to a more
normalized rate of 30-40 per quarter. Redbox expects a full movie
release schedule to return in 2022, with approximately 140-150
movies scheduled to be released, in-line with 2019.
Digital Strategy Solves Gap in Growing $58 billion Market. Redbox is building a
digital ecosystem that consumers can use as a one stop shop for
their entertainment needs by engaging with a variety of digital
video services within the Redbox app. Over the past several years,
Redbox has transformed from a single product physical offering into
a multi-window, multi-product experience for entertainment lovers.
Today's audiences are fueling an unprecedented demand for quality
on-demand content that is both through subscription and free with
advertising, as the overall addressable U.S. digital market is
expected to reach $58 billion by
2024.1 Looking ahead, Redbox plans to invest in
additional ad-supported content, deploy a subscription on demand
(SVOD) channels platform, and expand original movies through Redbox
Entertainment titles, helping to simplify the cord-cutting process
for consumers. With a unique customer base and new offerings,
Redbox's business is poised to grow and deliver value over the
near- and long-term.
Large, Loyal and Differentiated Customer Base Offers Unique
Asset. Redbox is an established entertainment brand with
tremendous marketing reach and deep customer base. The Company
reaches more than 46 million consumers via email and has recorded
more than 43 million mobile app downloads. Through the Redbox Perks
loyalty program, the Company engages and incentivizes 39 million
members, resulting in higher average revenue per user and reduced
churn. The typical Redbox customer is unique when compared to the
general population, with a focus on value (71 percent self-identify
as "Deal Hunters") and loving movies (average customer consumes
significantly more movies than the typical household). Notably, 70
percent of Redbox's customers identify as late adopters of new
technology, providing the Company with a unique opportunity to
convert them to Redbox's digital platforms over time.
Redbox Entertainment Offers Additional Growth Driver. The
Company produces and distributes exclusive and original content
through Redbox Entertainment, utilizing a multi-platform approach
to release content across a range of digital retailers and
streamers, generating incremental revenue and margin. Redbox has
released 21 films to date and announced the acquisition of two more
films, She Ball and The Last Son. Redbox previously
announced a slate deal with John
Wick producer, Basil
Iwanyk, committing to 12 action and thriller films over the
next several years. The platform's proprietary data from its 40
million customers enables Redbox to develop and acquire the
preferred content of its loyal customer base that it knows will
also appeal to wider audiences on platforms to which the Company
licenses content. Redbox's built-in distribution network provides a
competitive advantage that will generate value for the Company,
producers and talent.
The presentation and transcript from the meeting are accessible
on Redbox's investor relations website at
https://www.redbox.com/investor-relations and on Seaport Global
Acquisition's news page at
https://seaportglobalacquisition.com/news/.
About Redbox
Redbox is America's leading destination for affordable
new-release movies and entertainment with more ways to watch than
any other home entertainment provider. Redbox delivers value and
convenience through unparalleled choice across content, platforms,
rental and purchase options, and price points. The company recently
announced a definitive agreement to combine with Seaport Global
Acquisition Corp. (Nasdaq: "SGAM," "SGAMU," and "SGAMW"), a
publicly traded special purpose acquisition company. The
transaction, which will result in Redbox becoming a publicly traded
company, is expected to accelerate Redbox's ongoing transformation
to offer customers and partners a multi-product experience across
physical and digital channels. The company's expanding streaming
offering includes digital rental and purchase as well as free live
TV and free On Demand content, and complements Redbox's nationwide
footprint of approximately 40,000 entertainment kiosks,
conveniently located where consumers already shop. Redbox
Entertainment, a new content acquisition and production division,
has further transformed Redbox into a multi-channel content
provider. For more information, visit redbox.com.
1According to SNL Kagan, November 2020
Important Information About the Business Combination and
Where to Find It
In connection with the proposed business combination, Seaport
Global Acquisition has filed a preliminary proxy statement and
intends to file a definitive proxy statement with the Securities
and Exchange Commission ("SEC"). The preliminary and definitive
proxy statements and other relevant documents will be sent or given
to the stockholders of Seaport Global Acquisition as of the record
date established for voting on the proposed business combination
and will contain important information about the proposed business
combination and related matters. Stockholders of Seaport Global
Acquisition and other interested persons are advised to read, the
preliminary proxy statement and any amendments thereto and, once
available, the definitive proxy statement, in connection with
Seaport Global Acquisition's solicitation of proxies for the
meeting of stockholders to be held to approve, among other things,
the proposed business combination because the proxy statement will
contain important information about Seaport Global Acquisition,
Redbox and the proposed business combination. When available, the
definitive proxy statement will be mailed to Seaport Global
Acquisition's stockholders as of a record date to be established
for voting on the proposed business combination. Stockholders will
also be able to obtain copies of the proxy statement, without
charge, once available, at the SEC's website at www.sec.gov/ or by
directing a request to: Seaport Global Acquisition Corp., 360
Madison Avenue, 20th Floor, New York,
NY 10017, Attention: Secretary, telephone: (212) 616-7700.
The information contained on, or that may be accessed through, the
websites referenced in this communication is not incorporated by
reference into, and is not a part of, this communication.
Participants in the Solicitation
Seaport Global Acquisition, Redbox and their respective
directors and executive officers may be deemed participants in the
solicitation of proxies from Seaport Global Acquisition's
stockholders in connection with the business combination. Seaport
Global Acquisition's stockholders and other interested persons may
obtain, without charge, more detailed information regarding the
directors and officers of Seaport Global Acquisition in Seaport
Global Acquisition's final prospectus filed with the SEC on
December 1, 2020 in connection with
Seaport Global Acquisition's initial public offering. Information
regarding the persons who may, under SEC rules, be deemed
participants in the solicitation of proxies to Seaport Global
Acquisition's stockholders in connection with the proposed business
combination is set forth in the proxy statement for the proposed
business combination. Additional information regarding the
interests of participants in the solicitation of proxies in
connection with the proposed business combination is included in
the proxy statement that Seaport Global Acquisition has filed with
the SEC.
No Offer or Solicitation
This communication shall neither constitute an offer to sell or
the solicitation of an offer to buy any securities, nor shall there
be any sale of securities in any jurisdiction in which the offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such
jurisdiction.
Forward-Looking Statements
This communication includes certain statements that are not
historical facts but are forward-looking statements for purposes of
the safe harbor provisions under the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as "believe,"
"may," "will," "estimate," "continue," "anticipate," "intend,"
"expect," "should," "would," "plan," "predict," "potential,"
"seem," "seek," "future," "outlook," and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. All statements, other than
statements of present or historical fact included in this
communication, regarding Seaport Global Acquisition's proposed
business combination with Redbox, Seaport Global Acquisition's
ability to consummate the transaction, the benefits of the
transaction and the combined company's future financial
performance, as well as the combined company's strategy, future
operations, estimated financial position, estimated revenues and
losses, projected costs, prospects, plans and objectives of
management are forward-looking statements. These statements are
based on various assumptions, whether or not identified in this
communication, and on the current expectations of the respective
management of Seaport Global Acquisition and Redbox and are not
predictions of actual performance. These forward-looking statements
are provided for illustrative purposes only and are not intended to
serve as, and must not be relied on as, a guarantee, an assurance,
a prediction or a definitive statement of fact or probability.
Actual events and circumstances are difficult or impossible to
predict and will differ from assumptions. Many actual events and
circumstances are beyond the control of Seaport Global Acquisition
or Redbox. Potential risks and uncertainties that could cause the
actual results to differ materially from those expressed or implied
by forward-looking statements include, but are not limited to,
changes in domestic and foreign business, market, financial,
political and legal conditions; the inability of the parties to
successfully or timely consummate the business combination,
including the risk that any regulatory approvals are not obtained,
are delayed or are subject to unanticipated conditions that could
adversely affect the combined company or the expected benefits of
the business combination or that the approval of the stockholders
of Seaport Global Acquisition or Redbox is not obtained; failure to
realize the anticipated benefits of business combination; risk
relating to the uncertainty of the projected financial information
with respect to Redbox; the amount of redemption requests made by
Seaport Global Acquisition's stockholders; the overall level of
consumer demand for Redbox's products; general economic conditions
and other factors affecting consumer confidence, preferences, and
behavior; disruption and volatility in the global currency,
capital, and credit markets; the financial strength of Redbox's
customers; Redbox's ability to implement its business and growth
strategy; changes in governmental regulation, Redbox's exposure to
litigation claims and other loss contingencies; disruptions and
other impacts to Redbox's business, as a result of the COVID-19
pandemic and government actions and restrictive measures
implemented in response, and as a result of the proposed
transaction; Redbox's ability to retain and expand customer
relationships; competitive pressures from many sources, including
those using other distribution channels, having more experience,
larger or more appealing inventory, better financing, and better
relationships with those in the physical and streaming movie and
television industries; developments in the home video distribution
market as newer technologies and distribution channels compete for
market share, and Redbox experiences a secular decline in the
physical rental market; the impact of decreased quantity and
quality of movie content availability for physical and digital
distribution due to changes in quantity of new releases by studios,
movie content failing to appeal to consumers' tastes, increased
focus on digital sales and rentals, and other general
industry-related factors; the termination, non-renewal or
renegotiation on materially adverse terms of Redbox's contracts or
relationships with one or more of its significant retailers or
studios; Redbox's inability to obtain licenses to digital movie or
television content for home entertainment viewing; Redbox's
reliance upon a number of partners to make its digital service
available on their devices; unforeseen costs and potential
liability in connection with content Redbox acquires, produces,
licenses and/or distributes through its service; the impact of the
COVID-19 pandemic on Redbox's business, results of operations and
financial condition, its suppliers and customers and on the global
economy; the impact that global climate change trends may have on
Redbox and its suppliers and customers; Redbox's ability to protect
patents, trademarks and other intellectual property rights; any
breaches of, or interruptions in, Seaport Global Acquisition's
information systems; fluctuations in the price, availability and
quality of electricity and other raw materials and contracted
products as well as foreign currency fluctuations; changes in tax
laws and liabilities, tariffs, legal, regulatory, political and
economic risks.
More information on potential factors that could affect Seaport
Global Acquisition's or Redbox's financial results is included from
time to time in Seaport Global Acquisition's public reports filed
with the SEC, including its Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K as well as
the preliminary proxy statement that Seaport Global Acquisition has
filed and the definitive proxy statements that Seaport Global
Acquisition intends to file with the SEC in connection with Seaport
Global Acquisition's solicitation of proxies for the meeting of
stockholders to be held to approve, among other things, the
proposed business combination. If any of these risks materialize or
Seaport Global Acquisition's or Redbox's assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. There may be
additional risks that neither Seaport Global Acquisition nor Redbox
presently know, or that Seaport Global Acquisition and Redbox
currently believe are immaterial, that could also cause actual
results to differ from those contained in the forward-looking
statements. In addition, forward-looking statements reflect Seaport
Global Acquisition's and Redbox's expectations, plans or forecasts
of future events and views as of the date of this communication.
Seaport Global Acquisition and Redbox anticipate that subsequent
events and developments will cause their assessments to change.
However, while Seaport Global Acquisition and Redbox may elect to
update these forward-looking statements at some point in the
future, Seaport Global Acquisition and Redbox specifically disclaim
any obligation to do so, except as required by law. These
forward-looking statements should not be relied upon as
representing Seaport Global Acquisition's or Redbox's assessments
as of any date subsequent to the date of this communication.
Accordingly, undue reliance should not be placed upon the
forward-looking statements.
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SOURCE Redbox