Several commenters on this site have claimed recently that Redbox kiosks in their areas have been charging more than $1 per night for rentals. The kiosk vendor confirmed yesterday that it is currently testing two different pricing models, one in Albuquerque, New Mexico and one in Harrisburg, Pennsylvania. Kiosks in Albuquerque are charging $1.50 per night, and Harrisburg machines are charging $2 for the first night, with the customary $1 per night charge for additional nights. The higher test prices are for both new releases and catalog titles in both areas.
These tests support Coinstar CEO Paul Davis’ comments last month that at least some Redbox kiosks had software installed that would allow variable pricing.
Our old friend, Merriman Curhan Ford analyst Eric Wold, feels that even if higher rental prices became permanent, Redbox would not lose many customers.
“I still believe consumers will view the value and convenience of Redbox for the immediate gratification of a DVD rental as superior to the other rental options out there. . . Personally, I’m a little concerned about the negative impact to the ‘ per day’ marketing message that is now so widely associated with the Redbox brand.
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. . However, if Redbox is able to push through a higher price point without negatively impacting the brand or traffic/usage to any great degree, then the positive benefit to margins could be substantial.
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”
Wold also feels that if they are successful, higher pricing models may be just the sort of compromise studios are looking for in their battle with Redbox. Either way, Wold thinks that higher prices would have a positive effect for Redbox because they would help offset the increased costs incurred by the company when it acquires titles from retail channels.
Is this limited, higher pricing test going to come and go without lasting effect, or is this the beginning of the end for $1 per night Redbox rentals? If higher prices become the norm at kiosks nationwide, will it affect your Redbox habits? Let us know in the comments.
[via Home Media Magazine]
“He said he was disapointed himself with this weeks releases but it was mostly due to the high number of releases for next week. He said he thought there were 13 movies being offered that are released next week.”
Yeah, It probably had nothing to do with the fact that “I LOVE YOU, BETH COOPER & ALIENS IN THE ATTIC WERE FOX THEATRICAL RELEASES.
But they got that crappy piece of Sh!t THE MARK PEASE EXPERIENCE.
i will not use redbox ever again if the price goes up period.
I have rented over 200 movies from redbox. And everytime i speak to a representative from redbox they are so amazed, but after hearing that they may keep the price up i might just go back to hastings. they have dollar rentals there. I like paying a dollar and keeping the movie one night. I am night trying to memorize the stupid thing. good grief. And half the time the movies are just ok, with a few great ones out there. I hope they drop the price back down soon, and not get so greedy. Or everyone might go to other places to get the movie they want, like best buy.
I feel better now…oh yeah they are full of shit to because at one place they’ll charge a 1.07, 1.10, 1.59 and some are 1.61. that is wrong, they need to fix that soon.
Oops–you meant to write “sh*t”! :-)
We live 20 miles outside of ABQ, and the price has gone up to 1.50 a night.
Kinda annoying, as ABQ is not a wealthy place, perhaps that is the point, they want to see if the average person will pay the price.
Today, I rented from Redbox and in return received a bill for $4.26 for 2 movies. Noticed but thought I was seeing things or there was a typo! Called Redbox and the entire time I sat on hold…….22 minutes…..I repeatedly heard about how redbox movies were $1.00 per night nothing about a test market. The young man that answered (very nice and Friendly) told me of this new test market as of right now only happening in New Mexico and Harrisburg, PA. How about that! I am now looking into Netflix streaming. One price for everyone no matter where you live! This is ridiculous!
Well I for one would rather go with netflix if this becomes permanent. I live some 45 mins from Harrisburg and DVDs are going for $2 the first night. Withthe $9 plan from netflix I could potentially watch like 15 movies if I get then and watch them within a day. I could only watch 5 with redbox assuming I rent for only one night each and I would still have to pay an extra $1. So if it becomes perm. Iwill def try netflix
I’m with you. I switched to RedBox from Netflix. If the price goes up then netflix is a winner with streaming and discs selection.
They’ve gone up to $2. in my area, what a disappointment! It will definately make me think a little harder on just grabbing a quick rental now that the price has doubled. $2. is still not bad for a rental but the $1. per night was much more tempting. I also agree it should be the same price everywhere for everyone especially when advertising boasts $1.
I enjoyed it while it lasted & will be checking into the alternatives as well.
I will go back to netflix, it will be cheaper
If Redboxgoes to higher prices I will go to Netflix. I hate having to wait in long lines, especially to RETURN a movie… I’ve waited as long as 45 minutes to return a movie. I always order the movies on-line and then go pick them up – but very few people do that, so you’re stuck behind them as they talk to their kids and twiddle their thuimbs, having no regard for all the people behind them. The $1 price is the right lure to get me out of the house and use my gas to drive over there… any higher and it’s not worth it. At least with Netflix, even if I have to wait a while for new releases, I can get a choice of thousands of others not available at RedBox and I can stream free movies, I don’t have to leave my house and use gas and raise my blood pressure over whether there will be a long line or not. RedBox better get a clue, there’s reason people are using them.
here it comes, profits are up, so they jack the prices, greed is good!
My husband and I use Redbox frequently to catch some additional movies when we are waiting for our latest DVD from Netflix to come. At $1 it’s worth it to use but anything more than that and we will stop using it because it just isn’t worth it especially when you have to leave the house twice, once to go rent it, and then again to return it.
I will switch to Netflix if these rates become effective in my area.
I will also go to Netflix
If prices go up, Red Box will lose my rental money… the $1 a nite thing is the only reason we can afford to rent movies at this time with the ecomony so rough.
“Wold thinks that higher prices would have a positive effect for Redbox because they would help offset the increased costs incurred by the company when it acquires titles from retail channels”
It may have a positive effect for Red Box in this economy, but not for Red Box customers…in fact, I doubt that it is costing RB that much money to acquire titles from retailers…no more than it cost me, the biggest difference is, I am not renting my copy out, oh couple hundred times at a buck a pop making the original price back several times over.
$1.50 is the most I would pay for a Redbox movie. If the prices are already going up this early in the game, in a few years they would be the price of a Blockbuster rental, which is not a good deal (and is the reason Blockbuster is biting the dust). The reason people use Redbox in the first place is because the $1 price is such a good deal. Raise the movies to $2 and Redbox will lose business. Period.
For those of you who are touting Netflix over Redbox…Netfix is not all they are cracked up to be either. New releases are “very difficult” to get on Netflix. Unless you time things just right with the return day of the week. After the initial release date, your movie queue will be labeled “short wait”, “long wait”, or “very long wait” depending on how popular the movie is. You may be waiting quite a while, months in fact to get really popular movies. Although the selection of overall movies is excellent, using Netflix as a way to get new releases is a joke. I have always supplemented my movie watching with Redbox as an inexpensive way to get movies I can’t get promptly on Netflix, but now with their 50% price increase, I feel like they have violated the customer’s trust. I would rather read articles about how Redbox is fighting the movie studios to protect their loyal customers , and keep the “movie cult” like status, then see Redbox raise their prices to keep the studios happy. I find it ironic to have another article posted on Inside Redbox… that reported Redbox profits are up 90% from last year and of course this was with $1.00 rentals. As usual, the customer ends up taking it in the shorts. Nice….real nice.
I think everyone should go to RB’s main site, contact them thru email, tell them what we all think about their idea of raising the price on us…. I already did… maybe if they hear from us directly, not just on this forum complaining about it, we may be able to keep them from raising prices.
Go here: http://www.redbox.com/Help/Contact.aspx
RedBox is doing the same thing banks did with ATMs. They started out free or very low cost. Then once they get you hooked they up the price. Corporate greed just likes the banks!
No more RedBox for me!
The $1 a night price is the reason Redbox has become so successful. If the price goes up, then the amount of rentals will go down…Simple…I remember years ago when the video stores were profitable and the nightly rentals were inexpensive. They got greedy and raised prices. Now look at them. The same will happen to Redbox when they become greedy, which sounds like is now.
I will stop using Redbox if they up the price on their rentals. I will just go back to Netflix and public library.
I will stop using Redbox and go back to the local video store where after a couple of weeks the new release videos are $1
I may still use it but probably a lot less. At the $1 price point I am willing to rent more and test out movies that I would no longer rent at $1.50. RB would loose out on my picking up something if the movie I want is not in to getting nothing, for me I would go from a $3 a week customer to you will be lucky to get $1.50 a week only if the movie I want is in. I may even think about making the move to NF as I will then benefit from movie steaming. At $2 I will find a different box at the store across the street until their price is raised. I like red box best but $ is $ and at $2 red box is done.
I will not use Redbox as much if they raiser their prices…I rent from them 2 movies at a time sometimes 5 times a week b/c I don’t have cable…I can’t afford anymore than $1 each. I think they will lose alot of customers over this greed of theirs. Can’t they just be happy that their business is a success at $1 a night…It’s a test to see “how much we can push push push” to make more…if they thought this was a good idea all together then they would just change it and not have to “TEST” it!!!
If they raise the price on movie rentals I will have to stop renting. Being on a fixed income I have to watch every penny I spend so If they do this it will cause me to have to stop renting from them. I hate this because this is the only little pleasure I get to enjoy.
I agree, this is a terrible idea. You have to think what is more important….having and keeping a good customer base or appeasing the studios. Apparently it sounds like a lose/lose for Redbox. I too would move on to Netflix. I have liked Redbox because of the convenience and the price. If the price goes up then might as well move to the more convenient option of having the movies delivered right to my house. Keep the movies $1
Yes, if the price goes up at the Redbox Kiosks, I will NOT be renting as many movies as I do now, especially with the economy the way it currently is. I am unemployed (been laid off three times in one year) and the $1 rentals allows us to see movies still. However, the more that goes up, the less we’ll be able to afford seeing them as often. I really hope the prices do NOT go up; please keep them at $1.
first we were getting one free rental every monday, got a lot of us hooked on redbox, then they nixed that and made it first monday of each month, went from 52 free to 12 free, now they are raising prices in only certain places………looks to me like they do not want our buisness…i heard blockbuster is competing w/ redbox soon…blog if anyone knows how much blockbuster is, and where…k? rock on movie lovers~~~~~dyciane*
People r out of work! Why? This was the only thing we had left to enjoy. RB can raise the rental fee and cut thier throat. Stab the hand that feeds them. Some will stay many will leave brcause they r forced to. The Red Box will turn blue. Greed is before a fall. That’s the truth and it will come to furistion. They should think of those that got them to where they are. Most people like me have to drive a bit to get to a box and we do pass by other video places, I guess I will have to stop there. I won have a reason to stop at RB.
I have already started to get disenchanted with RB. The last two times I rented on line, when I went to pick them up, the machine was broke down. They were two different locations. When I finally did get a few to watch, when I went to return them, that machine was broke down also. It does get a little frustrating to have to wait so long to return movies when someone takes so long renting them. If they are outside, it’s even worse. Here in Iowa, I’m not standing in the cold to return a movie. 99% of the movies these days are CRAP. A good movie is very hard to find. If they go up to $1.50 in my area, it just won’t be worth the wait in line or in the cold.
I stopped by RB on the way home from work one moring and saw the 1.50 price… I walked away and after reading all these posts I doubt I will go back to one… Albuquerque has a NetFlix distribution place so the turnaround on movies are very fast. almost next day.. So long RB.. at least till the price goes back.
If they raise prices I will no longer rent at Redbox. Instead I will go to Blockbuster stores since they only charge $2.00 and it doesnt have to be returned ubtil midnight. They also have a much larger selection of movies to pick from. It was my favorite place until Redbox came out. Still go there sometimes to get movies since Redbox doesn’t carry that large of a selection. They are making a big mistake. They caused alot of video stores to go out of business because of their $1.00 rentals. Sounds fishy to me.
Greed destroyed this country. Go to library….New releases are free. I will never rent from Red Box if the fees go up even one penny…It is not about money….
DO NOT GOTO THE REDBOX IF THEY INCREASE THE PRICES!
IF EVERYONE DOES THIS, THEY HAVE TO LOWER THE PRICES OR THEY WILL LOSE ALL THE CUSTOMERS.
Thing is, the studios are forcing Redbox into higher pricing if Redbox wants to still be able to provide new releases on day one of the release. There’s going to be 2 options: Redbox has to raise the price to be able to afford to make new releases available on day one; OR Redbox can keep the price low but does not make the new release available until 30 days after it’s release date. I think this site should make a post/take a survey of what Insiders prefer given these 2 unavoidable options/compromises. I for one would prefer/choose the 30 day delay to keep the price at $1.
What about the 3rd option of higher prices for the 1st 30 days or so after the release date and then dropping down to a $1. That sounds to me to be the compromise that gives Redbox and the customer the best of both worlds in terms of choice.
Really want to see it NOW – pay extra. Don’t mind waiting – $1/business as usual.
I think that’s a fair deal.I get why they’re increasing prices.I am
in the area with the now 2.00 fee. We didn’t rent a movie last
weekend of October and went to this weekend.I was shocked to
see the 2.00 fee. My husband and I rent a movie almost every
weekend.The 1.00 fee was great because we could rent a months
worth of movies for the price of one blockbuster rental.Now,
thats not the case.We called in after renting the movie to see what
was going on and told about being in the test market.The whole time on
the phone we heard the 1.00 fee etc.It’s not really great to still have
that on the phone lines when area’s like ours are no longer that
price.We most likely we’ll be renting less.We’ve had several issues lately
when renting online and reserving with machines being broken.It
cost us more in gas to drive to another machine after waiting on
the phone to get the issue resolved.Then in between driving to the next machine
the movie we reserved was gone.There’s not enough variety in the machine and
many movies listed aren’t great.Granted..not to many superb ones
have came out lately but there’s a few that aren’t worth even having
in the kiosk.I just can’t justify running all over the place and not being
able to get a great movie.We’d still be renting at blockbuster if
thats the case and prices keep rising.We aren’t usually able to
take an enjoy the free movie on mondays and when we’ve tried the lines
have been to long or movies we’re gone.So..the 1.00 option was a nice
thing to have.The worst part is when we called this weekend we
were told at the moment it looks like the 2.00 rental fee will be in p
place for good at least in Harrisburg.It really sucks.
This is what I agree with as well. It makes complete sense and is very fair to charge more for new release blockbusters.
What I would like to see is this:
First 30 Days of Major Release:
$1.50 per night for DVDs, $2 per night for blu-ray.
Non-major releases and after 30 days:
$1 per night for DVDs, $1.50 per night for Blu-ray
An across the board price increase to $2 first night is not a good idea and I believe it would fail, especially on less popular titles. $1.50 per night is a bit better, but still leads to failure on certain titles.
It will definitely be interesting to see what happens.
In other words, vote with your wallet!
I think the final vote of the Redbox customers will be a vote made with their wallets. Third option of paying $2 if you rent a new release within the first 30 days of it’s release while keeping all other rentals at $1 is the best option/compromise if Redbox can make that work somehow. My thought though is if a person rents it on day one of it’s release and keeps it the full 25 days, how can they only be charged a rent-now-own fee of only $2 for that first day, and $1 for every other day kept–as some bloggers have suggested–making it a total of only around $26 charged to the person. Redbox is going to fight the lawsuit by Laurie Pritcher that the $25 charged now is a reasonable charge BECAUSE by having that dvd out of circulation for 25 days, Redbox has lost 25 days of revenue @ $1 each day=$25. Unless Redbox charges $2 for EVERY day up to 25days a person keeps the new release out (total of $50), then they can’t fight the Laurie P. lawsuit by reasoning that since they lost 25days of $1day revenue daily for 25days, $25 is a reasonable charge to own that dvd. Redbox would have to charge the customer $50 for the dvd in 25 days because Redbox lost 25 days @ $2 per day of potential revenue lost by the person keeping the new release and out of the kiosk rental circulation for those 25 days of it’s release. If the lawsuit claims $25 is too much to be charged for 25 days, imagine the lawsuits that $50 is ridiculous. $50 is ridiculous BUT Redbox will have to maintain that $2 daily charge for the full 25 days of a new release rental to maintain their lawsuit reasoning. Also, how can they charge $2 the first day of the rental, and $1 each day thereafter without future arguments that the $1 thereafter has to be considered a late fee since the $1 charge every day thereafter is more/different than the original rental charge of $2. Now they can argue they don’t charge late fees because every day you rent the dvd you are merely being charged the same $1 rental fee. If the rental fee goes from $2 for the first day and $1 for every day you don’t return it, then there would be more substance that the $1 thereafter is a late fee because it differs from the original rental fee of $2.
I agree that a higher initial fee and then having lower fees each additional day the dvd is kept would look too much like a late fee and they would definitely have to do away with the “No Late Fees” slogan.
As for charging $50 to keep the disc 25 days, why not just let the customer own it after 12 days and charge $24. It would seem like the way to go if they decided to charge $2/day. Basically whatever Redbox charges, just let the customer keep it after they’ve paid around $20-$25 or so.
Hey, I got an idea. Everybody keep your 1 or 2 dollars and stop making millionaires out of all these Hollywood hasbeens that can’t even spell the word “act”. I can’t even remember the last time I saw a GOOD movie, let alone a GREAT one. Let’s boycot the professionally drugged atheletes also. We can all try something that hasn’t been done in years. READ A BOOK!!! Or even something more radical, talk to your KIDS!!
I thought this’d happen eventually- get everyone hooked, then jack up the price! Being the cheap bastard I am, I don’t take kindly to price increases- in fact I simply DON’T go to theaters anymore because they simply cost too much ($10 is simply TOO MUCH to see a movie ONE TIME, and the screen size and presentation quality of the average theater isn’t much better than what you’d get at home either!)
I hope the “test” backfires on them in a big way.
I never buy movies unless I have first seen them. It is my understanding the studios want to put a hold on the new releases for 30 days or longer so people will have the time to buy them at the premium price….isn’t this backwards? Because of the limited turnaround time a customer is given, the dollar price point is where Redbox should stay if they wish to stay competitive with Blockbuster and Netflix. In the world of advertiseing the trademark of any company is a wonderful thing….it sets them apart. In the case of RB it’s “1.00 rental”(provided you return the movie within 24 hrs). If Redbox wants to raise rates above the $1.00 per 24 hour period then they should figure out a way to allow the customer to keep the disc longer without charging for the longer keep at home period.
I would not pay the higher amount. I can go back the the two dollar theater and watch them on the big screen
wow, I live in Albuquerque and didn’t know about the test price increase. Probably because I haven’t rented a movie in two weeks due to the cruddy selection at the redbox.
I will pay $1.50 if I really want to see the movie, but I have a feeling I won’t be renting 6-8 movies a month and maybe just 1-2 moves a month if they keep the $1.50 price.
Being on a fixed income, I will not use red box if the prices go up. I will just wait for the movie to come out on cable or Dish.
I live in the area where they have gone up to $2 for the first night. I can say that this is losing you business, people used to rent the max 5 per night on the weekend, plus a couple during the week, now they are only renting one or two a week if at all. A lot of people I have spoken to now are going back to Blockbuster because now in this Central Pa area they have unlimited nights for $2.99 per movie. Redbox you really shot yourself in the foot with this price raise. I would suggest you go back to $1/night before a boycott happens I have seen signs for protests!
I’m in the minority here and my renting will not change if the price increases to $1.50 or $2. I tend to rent no more than one movie a weekend, and don’t have time to watch movies during the week. For me, Redbox still beats Netflix pricing, plus I can choose which title I want to watch that night. And the increased Redbox pricing is still far better than $4+ for a new release at Blockbuster.
I AM A RETIREE ON A FIXED INCOME. I WELCOMED REDBOX AND ITS’ $1.00 PER NIGHT CHARGE BECAUSE IT WAS BOTH AFFORDABLE AND OFFERED AN ALTERNATIVE TO THE CRAPPY PROGRAMMING ON CABLE TV. BUT LATELY I’VE NOTICED THAT THE REDBOX SELECTIONS ARE BOTH UNINTERESTING AND, FOR THE MOST PART, UNRECOGNIZABLE. IF THE RATES WERE INCREASED, I WOULD CHOOSE TO SAVE MY GAS, STAY HOME, AND BE CONTENT PAYING THE $39.99 PER MONTH (PLUS TAX AND FEES) TO CHARTER COMMUNICATIONS FOR THE CRAPPY PROGRAMMING THEY OFFER.