Redbox ups rental price, announces streaming plan
LOS ANGELES (TheWrap.com) - Redbox announced that its famous -- or infamous, if you happen to work for a major studio -- $1-night-rental price is being upped to $1.20.
Announcing the change, the rental chain also said that it will have a movie-streaming business plan in place by the end of 2011.
The rental chain attributes the price bump, its first in eight years, to increased operating expenses -- notably, the fact that many of its customers are choosing to pay for their rentals with debit cards.
Passing these fees onto customers less directly has been affected by the recent passage of the Durbin Amendment.
"The new price point is the result of rising operating expenses including recent changes to debit card fees," said Gregg Kaplan, interim president of Redbox, and president and COO of its parent company, Coinstar Inc. "Though prices for DVD rentals are changing, our commitment to providing consumers with the latest movies and games at an incredible value remains steadfast."
Company officials added that for those renting online before they head to the kiosk, the price increase won't take affect until December 1.