By Jim Donovan: You would think that they would have learned from the Netflix debacle, but I guess not. Don’t be surprised if you rent a video from a Redbox kiosk this weekend and find that the price has gone up.
The new rental rate has gone up to $1.20 per day, instead of the previous $1 daily rate. Redbox prices will remained unchanged for Blu-ray discs at $1.50 per day and video games at $2 per day.
The parent company of Redbox, Coinstar, says the price hike will help offset higher expenses for DVDs and processing debit card transactions. The price increases were tested in several cities to see how they would change rental patterns and the company says that they expect only a slight drop-off in DVD rentals. We’ll see.
It is interesting to note that the price hike came just as Coinstar announced that the company’s earnings nearly doubled. Well isn’t that special.