In some select markets Redbox, the discount DVD vending service, is trying out price increases for rentals. With increases to $1.50 or $2.00 for the first night and $1 for every night thereafter it could stand to increase Redbox’s revenue dramatically while putting it’s customers in an awkward position. The low $1 per night price is what drove so many people to try out the service but in an attempt to drive more profits it may end up doing the opposite.
The addition of Blu-ray titles may justify the increased rental price for many with others still undecided. Even at $2 per night it would be less expensive to use Rebox than to use a service such as Netflix or Blockbuster if you only watch one or two movies a month.
One party who stands to benefit from these tests is Blockbuster Express who still charges $1 per night for their movies.
[Source: Yahoo]
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