Ex-Warner Exec Departs Redbox

Redbox owner, Outerwall quietly announced that Mark Horak, president of Redbox, is stepping down, just 21 months after joining the kiosk video vendor following a long tenure with Warner Bros. Home Entertainment.

Outerwall CEO Erik Prusch will serve as interim president of Redbox until the position is filled. The company will initiate a search process to fill the role.  While no official reason has been given for Horak’s departure, Prusch alluded to ongoing softness in kiosk disc rental as a concern.

"Consumers' rental patterns have not returned to the levels we had expected by this time,” Prusch said in a statement.

Horak was hired by former CEO J. Scott Di Valerio in March 2014 and Mr Di Valerio was let go in January.  Wedbush Securities media analyst Michael Pachter says Horak was hired during the 28-day embargo discussions period with studios, which he said Horak help successfully navigate. Inventory management, however, was another issue for the firm.

"It appears he didn’t do a great job understanding their customer," Pachter said. "Horak allowed them to over-order inventory in the current quarter and demand dropped, costing them millions of dollars. That’s why he’s gone."