Back in 2011, the buzz surrounding the launch of Redbox’s Blu-ray disc rental business was getting increasingly dour.
For Taryn Aronson, who had been hired to help to execute the firm’s digital content strategy, the performance woes of physical discs were not anything to lose sleep over.
However, the negative notions surrounding Blu-ray’s lackluster performance drew Aronson’s curiosity.
According to the buzz, the root cause of Blu-ray’s performance blues at Redbox was that Blu-ray was “a low-margin business.”
“This just didn’t make sense to me because as a rental business, the driver of your profit is inventory turns,” explains Aronson, who notes that data showing robust turns of Blu-ray discs by Redbox competitors had exposed that demand was not the issue.
Meanwhile, a senior content leader at Redbox had recently broadened Aronson’s role, allowing her to troubleshoot for both digital and physical content. Having started her career as a financial analyst at Blackstone Group, Aronson first jumped into the media world at NBCUniversal, where she had become involved with the launch of streaming service Hulu. She would subsequently join Redbox’s strategy team after having completed an MBA degree.
In the ensuing months at Redbox, Aronson dug into the numbers and began to educate others on the true economics of Blu-ray versus SD and the practices that optimized the buying and allocation of Blu-ray discs at Redbox.
Reports Aronson: “I got people on board, and we were able to drive a ton of incremental profit for Redbox.”
Aronson’s key takeaway from the Blu-ray experience was the importance of understanding the role of finance and leveraging data to make better decisions across the business. As finance leaders, Aronson tells us, it’s crucial for us to work in partnership with colleagues and to make smart trade-offs to increase value for the company. –Jack Sweeney
