While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

Summary: With Netflix still reeling from its recent price-increase fiasco, a la carte DVD renter Redbox has decided it's the perfect time to slip in its own price hike on daily rentals.The company's kiosks have famously rented discs out for $1 per night (more for Blu-ray DVD and game rentals), but now customers will be charged $1.

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TOPICS: Hardware, Mobility
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With Netflix still reeling from its recent price-increase fiasco, a la carte DVD renter Redbox has decided it's the perfect time to slip in its own price hike on daily rentals.

The company's kiosks have famously rented discs out for $1 per night (more for Blu-ray DVD and game rentals), but now customers will be charged $1.20 starting on Halloween. (More trick than treat, obviously.) Redbox is blaming "rising operating expenses," including increased debit card fees, for the price boost, despite its parent company Coinstar seeing a 90-percent increase in profits for its third quarter.

To ease its customers' pain, the company says that it will transition into the new fee, continuing to charge a dollar for the first night of online rentals for the next month, with additional nights costing $1.20. You also won't be charged the new fee for additional nights if you rented a DVD before October 31. More info here.

Redbox may be a little sneaky trying to drop this fee increase in while one of its main competitors is suffering a PR disaster for raising rates, but that's also a good way to avoid some of that same heat.

Topics: Hardware, Mobility

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22 comments
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  • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

    That's still dirt cheap, even if their stated reasons for raising rates are bogus (why blame debit card fees just after a law went into effect limiting these fees?)

    That said, if they keep doing this I'll just stick to HULU. Now that HULU's signed a deal with the Criterion Collection I've got all the German Expressionist, French New Wave and five-hour black&white Samurai flicks I can handle! Cabinet of Dr. Caligari here I come!!!
    dsf3g
  • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

    So it went from a buck to a buck 20... that's still a heck of a deal.
    athynz
    • Don't say that too loud! Rebbox might be tempted to raise the price

      even higher.
      adornoe
  • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

    Got the email yesterday, still not bad for the occasional dvd rental. Most of the time I rent from redbox when I have a free code.
    LoverockDavidson_-24231404894599612871915491754222
  • hmm

    And they wonder why Piracy thrives, download the latest and greatest movies at 1080p bluray quality in 25 to 30 minutes...
    Hasam1991
    • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

      @Hasam1991

      Piracy thrives because they're charging $1.20 a day? I don't think so.

      Now if they went to $4.99 a day like Blockbuster was trying, just before they went bankrupt, well, then I might be more receptive to the argument. But if $1.20 drives you to filesharing sites, then you would have grabbed the movie online no matter what.
      dsf3g
    • If $0.20 is all the excuse you needed

      @Hasam1991

      Then your mind was settled on the matter already.
      oncall
    • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

      @Hasam1991

      Yeah, I'm going to risk getting sued for $3,000 or more so I can save $1.20. I'll happily pay the $1.20 or even $2.00 or more.
      Dauplat
  • When you're making record Profits in a down economy

    It's probably not a good time to rais your rates. I am getting very tired of companies who are going down this road. I do not want a hand out or for them to loose money, but there is a decision making process at the top level of these companies that is so disconnected with what is going on in the real world that they make decisions to raise prices at the wrong time for reasons that are not valid.
    tgschmidt
    • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

      @tgschmidt

      I agree the economy is bad, and most people feel now is a horrible time to raise prices but the reality is that there is REAL inflation going on. The government statistics are massaged to make it look low but anybody that has been to the grocery store or gas station knows better. Health insurance costs and the cost to comply with the never ending flow of new government regulations will increase operating cost for everybody. Companies that do not respond to inflation, will find themselve out of cash and out of business.
      shawn@...
      • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

        @shawn@... That's mghty hard to argue with - +1!
        tom@...
      • Re: government statistics are massaged to make it look low

        @shawn@... But surely you live in a free country, where anybody is free to collect statistics, not just your Government? So why doesn't someone else collect statistics to show how big a liar your Government is?
        ldo17
      • In agreement

        @shawn@...

        For the past year, whenever a news story on TV or the radio talks about a "new recession", my wife & I always turn to each other & ask, "New recession? When did the old one end?"
        spdragoo@...
  • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

    .20 is where it starts. People saying... "it's still a good deal", even though "Coinstar seeing a 90-percent increase in profits for its third quarter". It's not about the 20 cent increase, this should be about WHY DO THEY NEED MORE MONEY? Last year, health insurance companies raised rates by 40% and are profiting in the billions. It's crazy...
    desktopanalyst
  • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

    They are reporting record profits but still slap on a 20% increase??? GREED !! pure and simple. If they get away with it without repercussions then more increases will ripple through the industry. Switch to streaming until they come to their senses.
    rrforster12@...
    • It's a deceptive percentage

      @rrforster12@...

      Increase in profits from prior period: 90%

      Percentage of profit compared to total reveneu: *8.0%*

      Their previous profit percentage was barely above 5%. That's not a lot of wiggle room there for a company. And they're (probably correctly) assuming that the big jump was related to the Netflix backlash, rather than to their general strategy. You can't sustain business by hoping the "enemy" continues to make mistakes. Ergo, a slight raise in rental rates that keeps them competitive.
      spdragoo@...
  • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

    Gee, Redbox raised their rates 20% - while Netflex went up 60%.

    Isn't obvious why people aren't saying much? Maybe Netflex should learn from their competitors.
    pauliw25
  • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

    While the increase can be sensationalized (20% increase!), it it $.20, and the first increase they have had in my memory. As for do they need to, I guess their financial report needs reviewed to see if they are rolling in profits. JMHO.
    zdnet@...
  • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

    Big deal; it's still a bargain at 3x+ that! I don't bother with many DVDs and they'll never get rich off me, the few times I do that's a drop in the bucket. Let's find more interesting subjects, OK? And more deserving?
    tom@...
  • RE: While everyone's hating Netflix, Redbox increases daily DVD rental fee by 20 percent

    Haven't paid my Netflix in they have a message telling me my account is suspended, but I can still watch anything I want on instant watch.
    timlc1