Given the increasing popularity of online content stores, services like Redbox have to be aggressive about their pricing so as to bring in customers. For them it should be cheaper to bring home a DVD or Blu-ray than it would be to rent the same movie via any online service like iTunes. Even though Redbox rental prices are going to be increased in the very near future the service will remain cheaper than its online counterparts. The increase will go in effect starting December 2nd.
Redbox is raising the cost of its 24-hour rentals by at least 25 percent. Starting December 2nd rentals currently priced at $1.20 will cost customers $1.50. Blu-ray rentals, which cost $1.50 now, will cost $2.00, registering a 33 percent increase. Despite the increase in price it would still be cheaper than renting a movie online where new titles usually cost about $4.99.
Some other changes will be made as well which include a new recommendation system and “more efficient” stocking of the kiosks, according to The Wall Street Journal. Increased rental pricing will also aid the company in improving its financial performance which has stagnated over recent months.
The company tried taking the battle to online video streaming services with Redbox Instant, a Netflix competitor, but it failed to gather steam and has already been put to rest.
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