Redbox Treating Itself to a 20 Percent Price Hike Effective Halloween, No Trick! - HotHardware
Redbox Treating Itself to a 20 Percent Price Hike Effective Halloween, No Trick!

Redbox Treating Itself to a 20 Percent Price Hike Effective Halloween, No Trick!

We just got word from Redbox that starting on Monday, October 31, the daily rental charge for DVDs will increase 20 percent to $1.20 per day. According to Redbox, the price hike is intended to offset rising operating expenses, such as increases in debit card fees. Blu-ray discs, video game rentals, and additional day charges for DVDs rented prior to Halloween won't be affected, Redbox said.

As as show of good faith and to help ease the transition, Redbox said it will discount the first day of all online DVD rentals to a buck from October 31, 2011 through November 30, 2011. Subsequent days will cost $1.20.

Why 20 cents? Redbox says it "conducted several months of testing and with careful consideration, decided the 20 cent adjustment would work best to keep prices as low as possible." In other words, Redbox is fairly confident the price hike won't elicit the same kind of intense backlash that Netflix did when it recently raised prices, among other changes.

How do you feel about the new price? 

New Daily DVD Rental Price

Redbox is making an announcement about its prices today, and we want to make sure that you hear it from us first.

Starting on Monday, October 31, the daily rental charge for DVDs will change to $1.20 a day.* The price change is due to rising operating expenses, including new increases in debit card fees. Daily rental charges for Blu-ray™ Discs and video games won't change.** Additional-day charges for DVDs rented before 10/31 won't be affected, either.

In order to make the transition easier, Redbox will discount the first day of all online DVD rentals to $1.00 from 10/31 through 11/30. Additional rental days will be $1.20.***

If you have any questions, please visit redbox.com/pricechange. There, we've provided additional information.

This marks our first price change in more than eight years as we work hard to keep prices low for our customers.

Thank you,

Redbox

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News:
According to Redbox, the price hike is intended to offset rising operating expenses, such as increases in debit card fees.

 

I call B.S. on that. Debit card fees charged to retailers are actually going down thanks to actions taken by the Federal Reserve and the Dodd-Frank financial regulation law (see HERE). That's the reason Bank Of America recently announced it will be charging it's debit card users (you and me) $5 a month to use their debit card. 

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So make sure you use a credit card instead of your debit card so they get charged even more money in fees... They are simply taking page from the Netflix book in this case and raising their prices for more profit.

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Lol thats funny page from netflix they had the worst quarter since they began. Messing with prices in a economy that in several states is actually lower than the great depression. Is just plain stupid

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I feel like redbox has a really limited selection and if a easily accessible service or box that is local can compete (such as blockbuster), redbox will lose a lot of its customers.

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