While Redbox should have been one of the beneficiaries of Netflix’s price hike, it looks like they’re being forced to follow suit. Along with their third quarter earnings report, they announced that they will be increasing the daily rental cost for DVDs by 20%. The price increase goes into effect October 31st and will result in DVDs costing $1.20/night. Blu-ray rentals will remain at $1.50/day and video games will remain at $2/day.
To address questions about the price increase, Redbox has set up an FAQ page at http://www.redbox.com/pricechange. It answers questions like why is there a need for a price increase and why by 20 cents?
- Why did you raise prices?
The price change is based on an increase in operating costs, including higher debit card fees that went into effect October 1. This is the first time in eight years Redbox has raised our daily DVD rental price.
- Why did you pick $0.20?
The amount was selected to best offset expenses, while keeping our value commitment to customers. We conducted several months of testing and with careful consideration, decided the 20 cent adjustment would work best to keep prices as low as possible.
The price increase goes into effect October 31st but through a promotion you can still rent DVDs for $1 for the first night through the month of November when you reserve the DVD through redbox.com.
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.