First Netflix raised its prices creating a huge amount of backlash from members earlier this year. Now, Redbox announced that it too is raising prices.
Redbox users got an email from the company saying:
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.
Though this is technically a 20% price increase, somehow it seems much easier to swallow, given that it's not a monthly fee that users pay, but just a dollar (now $1.20) for a movie at any given time. Depending on how many movies you rent from Redbox in a given month, this could still have a more significant effect, but I don't think Redbox is going to lose a lot of users over paying 20 more cents for a movie.
Netflix recently revealed that it lost 800,000 subscribers.
I'll leave you with some Twitter reaction to the Redbox price increase:
Redbox is raising prices. I think the next step is you have to get the 2nd half of the movie from a different box across the street.
Redbox changing prices to one night dvd rentals to $1.20. What commies
Of course there are still some companying. Here's one response from Redbox:
@shawnw Sorry you feel that way. This is the first time redbox raises prices in 8 yrs. This will help enhance services like phone apps, ect.