It’ll soon be a bit more expensive to rent movies and games from Redbox. Starting December 2, the price to rent a DVD at one of Redbox’s nearly 44,000 kiosks will increase by 25 percent, from $1.20 to $1.50 per day.
Redbox is also raising the price of Blu-ray rentals to $2, a 33 percent increase from the current $1.50 rate. Gamers are being hit the hardest, however, as rental fees are going up 50 percent, from $2 to $3. The new game rental rates go into effect January 6, 2015.
In a press release on the matter, Redbox said they expect an adverse impact on rental volume as a result of the price change. That said, Redbox’s parent company, Outerwall, believes the price increases will help offset future declines in the physical rental market.
J. Scott Di Valerio, Outerwall's chief executive officer, noted that this is the first time Redbox has raised prices on Blu-ray discs and video games and only the second time in more than 12 years that they’ve raised prices on DVDs. He insists that Redbox remains the best value in new-release home entertainment.
Once a disruptive service that helped eliminate video rental stores, Redbox is now on the opposite end of the discussion as people continue to migrate to more convenient sources of entertainment. By that, I'm of course referring to streaming video providers like Netflix and Hulu, among others.
Physical media still holds an advantage over its streaming counterparts, however, as movies are often released to disc much sooner than they arrive online.
Will the price hike affect your decision to continue to use Redbox?