Redbox, which operates self-serve DVD rental kiosks, announced today that it will begin renting Blu-Ray DVD movies for $1.50.
Meanwhile, parent company Coinstar reported second quarter earnings and said that a 35 percent year-over-year jump in overall second quarter revenue was largely driven by growth in the DVD business.
The company is playing up the convenience and affordability of its movie rental business - DVDs rent for $1 and Blu-Ray DVDs will rent for $1.50 and most kiosks are located in grocery stores. The company said Blu-Ray DVDs are landing in more than 13,000 of its kiosks now and should be in all 23,000 by the fall. It also pointed to 103 percent growth in sales of Blu-Ray players in the first half of the year, increasing the audience of consumers looking for these high-definition DVDs.
Parent company Coinstar has been positioning itself to focus more on the DVD and Coin businesses, disposing of its e-payment and money transfer businesses. DVD revenue increased nearly 44 percent to $271.9 million for the quarter, while coin revenue jumped 8.5 percent to $70.4 million.
The company also raised its third quarter and full year guidance, based on the results.
