It’s been six months since Redbox raised its per-night DVD rental fee from to .
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20, and according to parent company Coinstar, customers have accepted the increase without too much fuss.
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Coinstar is expecting to beat Wall Street estimates when it reveals its first quarter results at the end of the month.
The company’s workaround program to obtain Warner titles is apparently not causing the drag on Redbox’s bottom line that some expected.
D.A. Davidson analyst John Kraft agrees with Coinstar’s outlook:
“Today’s release should erase concerns about price increase-driven attrition and leave investors to speculate about how accretive the Blockbuster Express acquisition and the new joint venture with Verizon will be . . . At the end of the day, Coinstar’s competitive position and value proposition remains clear; the DVD format remains the lowest-price rental option and the new digital partnership should help retain attrition previously expected to shift to streaming.”
How about you, Insiders? Have you “accepted” Redbox’s new pricing scheme as the new normal? Or have your Redboxing habits changed since the 20-cent increase?
[via Home Media Magazine]
I don’t use Redbox much anymore. About 1 time a month…
I have Block Buster two out at a time…
And NetFlix online…
For Under $25.00 a month I have about all I need..
And doing just fine!
I used to rent all of the new movies each week. Now, I have gotten the monkey off my back because of the price increase. My Netflix works great, btw…
Good question,
Not seeing the figures, I wouldn’t think .20 would make much of an impact, but like we saw with NetFlix raising prices, they lost over 800,000 subscribers, yet they still saw an almost 50% increase in subscribers over previous year.
Like most, we are all looking to save money, so given no one likes to see price increases, in a recession as bad as this, the one thing people will not give up is their entertainment, so small price increases will not impact most peoples decisions on rentals. When NetFlix raised their prices 60%, I was one who dropped them, and started to search for lower price alternatives, and found one, a flat rate deal for $25. a year, not per month, but per year.
What $25.00 flat rate deal are you referring to?
I think he is talking about Flixsnow, but there are no new releases only older movies.
http://www.flixsnow.net/index/default.php
The Flixsnow sounds more like a Pyramid Scam to me after looking over it. The amount of movies they have is very limited.
I have not been renting DVD’s like I used to with Redbox since the price increase. But in the meantime I was subject to a layoff too, so money is super tight…guess I will have to wait for the library to have the movies I want to watch.
I use the library a LOT. They get a lot of the new releases in. Might have to wait a while to get them, but they are free.
That’s what I don’t understand, WHY is everyone raising prices so much, when this recession is hitting EVERYONE so hard. They’re putting things at a price that people just can’t afford it any more.
I REALLY HOPE Red Box doesn’t start making continual increases in their prices. The $1.20 they are charging isn’t that bad. Of course with gas going up so much, it limits the locations I will drive to in order to get a movie.
I will NOT use Block Buster Express for New Releases because they charge $2-$3. I refuse to pay that much. The older ones are $1.
I smell a new hike in price since Redbox and similar services killed the traditional renting store and we “gave” them power to do anything they want since they now own the business.
When I factor in the price increase, the delay window, the rental DVD version vs. retail, and essentially no free codes anymore – it seems like a much worse deal than before. Our library gets the retail DVD fairly fast in most cases, and there’s a 3 week window to return it.
I have an extensive movie collection so I am never in a hurry to see anything new but this twenty cent increase doesn’t seem too bad if you compare it to the cost of a theater ticket, most likely between seven to ten dollars(per person). That said, I stopped going to the theater years ago and only rent something once in awhile.
Even with the price increase I can see how Redbox could be a good deal for the occasional rental, but my family and I go through 2 or 3 movies per week plus the occasional video game and those are more expensive at Redbox. I found a service that offers DVDs, Video games, blu-rays and streaming for $10 per month. That’s a pretty good savings over Redbox when I add it up. It’s called the Blockbuster @Home service from DISH. I signed up on the suggestion from a DISH coworker and I am glad I did. My wife and I get all the movies we want and my kids get to play new video games every month. I think Redbox is great on short notice, but a monthly service is definitely the way to go for my family.
Free-FlixsNow is new kid on the block, first going after NetFlix and BlockBuster direct, then will introduce BlueBox which is same as RedBox, and of course streaming too, along with music and games, but not until beta testing stage is complete to insure first distribution center is running smoothly.
As to movies, they will have all new releases added in a couple weeks, plus thousands more coming soon. They will also have new movies 28 days before the others, so it should be interesting. I have rented several recent movies, release dates of late 2011, so I am looking forward to the first releases. Always nice to see new competition to keep prices in check.
As I stated above, after reading the website about Flixs Now, it sounds more like a Pyramid Scam.
If you refer someone you get your money back. Then you become a part of someone they refer. That’s a typical Pyramid.
PLUS the amount of movies they have now is very limited it.
They say if your the person that rents the movie FIRST you can keep the disc for copying to your computer to share.
I personally don’t think it’s a legit business. I strongly recommend everyone
research it thoroughly before joining. Just Saying……
I typically rented 6 to 8 a month, now maybe one.
Your greedy management will continue to increase like GAS prices!
I am surprise to see people complain about $1.20 when online rentals cost $3.99. Redbox is the best movie option out there. If you want to save with redbox, there are other ways. If you sign up for their phone text, you get one free rental per month. AND I ALWAYS BUY THE REDBOX GIFT CARD OFF THEIR SITE ever since they introduced that. It only costs $1.00 per rental and THERE ISN’T TAX. You could buy a $5 or $10 gift card for 5 or 10 rentals. Buy a gift card and keep it in your wallet. Simple as that.
Do the math…. If I were to rent 6 movies per month, it would only cost .83 cents per rental.
And redbox are everywhere around me and I can even check out what movies are available from their site. I dropped netflix, hulu, amazon prime and I only use amazon vod and redbox.
I agree, Red Box is the 2nd best way to go, Public Library is the BEST, it’s FREE. My only concern is they will continue to go up in price just like everyone else.
Blockbuster Express now charges $2 – $3 for the new releases. The ones that have been out for a while they drop down to $1.
Red Box DOES have great ways of getting free codes for free movies. Not everyone can get the codes sent to cell phones.
They also have a lot of games and other ways of winning free codes for movies.
I was NOT aware of the Gift Card. Thanks for mentioning that, I will check it out.
I do not rent Redbox as much as I did before the price increase. Also, since they put games into the redbox kiosks, they do not have nearly as many new movies so some of them are not available in my town. I use other sources now to rent movies, since I get rent one, get a dollar movie for free from Family Video!
The increase has greatly impacted the amount of movies my family rents per week – much less now. I think if you give an inch you lose a mile in these situations.
The gift card (Redbox gifts) is a nice work around IF you are okay only renting at the kiosk. Because of the high rate of rental in my area if you really want a particular film you must rent it online first and pick up later or risk it being gone by the time you get to the physical kiosk. I cannot begin to tell you the number of times I have had a disappointed child because the film was shown in stock online but by the time we got to the kiosk (about 10 minutes later), the film is gone.
We use the library a lot more since the price increase and I am seriously considering the Blockbuster option since there is an actual physical store located near our neighborhood.
Very few movies are a “must see it immediately” caliber anymore so the wait is no big deal for it to come out on cable or at the library.
I just really feel at some point we as consumers have to say “no” to even a small increase. We are nickle and dimed all over now and it adds up quickly. Bottom line for me was the price increase translated into a large reduction in rental.
I had just bought a blue ray player and at first I thought the price increase was the difference in blue ray and regular DVDs, until I rented a regular DVD. There is a Redbox within a few blocks of my home, so getting there is not a hassle or costly. I love that I can reserve a DVD online so I can just swipe my card, get my DVD and go. But find it frustrating when I have to wait for someone else ahead of me to make a selection at the box, when all I have to do is swipe my card. Especially when they get into the “out of stock” section and keep looking. It is more convenient than my library, and I am more likely to get a new DVD without having to wait for weeks. I also think the boxes should be modified so one can return a DVD while someone is going through the entire selection 2 or 3 times while making their choice. These are resasons that would contribute to my choosing Netflix over Redbox. If the prices go up to where they are comparable to Netflix delivery I will probably go back to that, it’s nice not having to return the DVD within 24 hours.
I think the small increase is trivial. Electricity costs and fuel costs have gone up, so it’s reasonable to expect Redbox’s day-to-day expenses to go up. Any rational person would rather pay less for something, but if paying a bit more prevents them from operating at a loss and eventually going out of business, I’ll do it. Most locations around me now have 2 boxes, so I look at is paying for a better selection and increased availability of popular titles. I did not know about the gift card option, so I might just do that to save even more.
I rarely use Redbox anymore.
Why is there a Netflix ad on this page? Aren’t they the competition? I didn’t like the hike in the price and yes it has caused me to decided against renting movies a few times. More than anything the having to wait 28 days has me mad. If I can’t make it to the theaters, I like to rent the move( for $1) to see if I want to purchase it. Raising the cost on it makes me think twice about if it’s worth getting to since it would just add on to the cost of the movie if I decide to purchase it. The delay also causes me to miss out on the discounted price of the new release.
I’ve been using the gift cards to beat the price increase(wait a minute, they have my money up front to avoid 20 cents?)
I don’t rent very often just because of how few movies worth watching are coming out.
It is easy for Redbox to raise prices gradually when there is no competition for new movie releases. BlockBusterExpress is $3.
I dont use redbox much anymore. With money being really tight, I have moved to watching everything online….tv shows and movies. I save money and can watch them whenever I want. Quality might not be super great on,the movies at times, but it fits for my needs.
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