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Redbox Continues Testing Higher Prices

Redbox has been toying with higher price points than its famous $1 per night in select markets for a while now, and doesn’t appear to be stopping any time soon. After beginning tests of higher pricing in Albuquerque last fall, Redbox has confirmed to TheWrap that tests are also under way in San Diego, Spokane, Miami/West Palm Beach and Modesto.

The pricing in the various test markets goes as follows:

  • Albuquerque, NM – $1.50
  • San Diego and Modesto, CA – $1.25
  • Spokane, WA – $1.15
  • Miami/West Palm Beach, FL – $1.15

According to a Coinstar spokesperson:

“We plan to continue the test until we can understand the implications . . . There is no definitive end date.”

Now for the big question: if any of the above prices, or something even higher, were to become Redbox’s new price point, would that affect your rental habits? How many customers, if any, would be turned off by a $.15 to $.50 Redbox price increase? Hit the comments and tell us where the sweet spot is for you when it comes to renting a DVD for a night.

(via The Wrap and The Hollywood Reporter)

62 Responses to “Redbox Continues Testing Higher Prices”

  1. Visitor [Join Now]
    nirra [visitor]

    It would not make a difference for me! I have rented tons of redbox movies but I never pay for any of them. I always use the free codes thanks to this site :)

  2. Visitor [Join Now]
    rb [visitor]

    I think anything over $1.25 at this time will cause regular Redbox customers to pause/think/perhaps turn away empty handed. A 25cents increase doesn’t seem like much BUT that is a 25 percent increase at once over what Redbox customers are content/able to pay now. Any time a company raises their prices by 25 percent or more will cause resentment by their regular customers, and therefore, perhaps a decrease in these customers. Anything over this 25percent increase by Redbox will be perceived by the regular customers as a ‘bait and switch’ by Redbox: that is regular customers will perceive it as Redbox pulled them in with a low rental price , then once they got them, will abuse their vulnerability. I think loyal Redbox customers can understand and accept that over the past 5 or 6 years EVERYTHING has increased in price and so must Redbox increase it’s price a little to, if nothing else, be able to increase the salary/health benefits of the blue collar Redbox service employees to keep up with these employees’ cost of living.

    • Visitor [Join Now]
      missy [visitor]

      I would not pay more than 1.25 per movie. I’d rent at 1.25, but only if I knew it was a good movie and I wanted to see it. It would not impact me much at 1.15. I rent more movies at a 1.00 and I don’t mind if one was old or bad as much. I know I would reduce my number of movies if they increased. I rent 4 at a time once in awhile, but if they increase to 1.15 I’d rent 3 at a time. I like to keep it under 5.00. Maybe if they did 1.25 but bogo codes.

  3. Member [Join Now]
    esaud

    I will probably continue renting, but will think about not as much since I am able to get free current movies from the library, and have a week to return them. As far as free codes, I wish they weren’t limited to texting. Some of us haven’t entered the texting age yet and don’t ever care to.

  4. Member [Join Now]
    dont811

    I concur w/esaud-I don’t TEXT on my phone. I also DON’T WANT any of my personal info available to anyone. Again, READ the fine print as soon as you checkmark that ‘thingy’ you lose all your privacy !!! As far as the increase in rentals=I no longer get FREEBIE codes therefore I need to save where i can. I just rent from Blockbuster Blue Kiosks. Simple supply & demand. $.15 doesn’t kill me ! It’s the principle of the whole thing. Yet, ALL renting in BETTER than paying $10.50+ per person to go to a movie !! If all you dummys who pay so darn much would STOP–the price just might GO DOWN. Or is that such a diificult concept. Thank you GOD BLESS AMERICA

  5. Visitor [Join Now]
    Angela [visitor]

    The price has been $1.15 in my area for at least a month. I was renting an average of 5 movies a week and in the past month, I’ve only rented 2. I know they’d like to make more money but were they losing money by only renting at $1? I, like many other people I know, are willing to spend more at a lower price. Mathematically, it doesn’t matter but mentally, it’s all about getting a deal.

    • Visitor [Join Now]
      John Small [visitor]

      Yes, they were losing money. If 15 cents is enough to stop you renting then you weren’t a good customer anyway.

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      Redbox was profitable in Q1 JS. Don’t worry small one Redbox won’t raise prices on DVDs, at least not for the foreseeable future. No reason to take any pressure off of physical stores at this point. No upside in giving the Blockbuster bond holders any hope.

    • Visitor [Join Now]
      Upset [visitor]

      I just went to my redbox and noticed that they raised the price to $1.25 plus an additional 1cent to the tax. I immediately walked away because I think that is absolutely stupid in my opinion. If you are going to advertise $1 movies, don’t jack up your prices twenty-five percent OVERNIGHT. I have always been a loyal customer, I think there is only maybe 10movies in the 20pages that I have not seen, and now will never see.

      Forget redbox, they want to screw me over without warning, they can keep their lying scam of a price jack up. I am going to netflix, at least it would be cheaper in my case. I only liked the convenience of redbox; not anymore.

  6. Visitor [Join Now]
    tinybrat [visitor]

    Anything over $1.25 would be too much for me at this point. I realize other places rent for $4-$5, but I don’t rent there anyway. Redbox has been $1 which I’ve grown accustomed to, but I would (and do) pay $1.25. Also I hear that blu-rays will be $1.50, so that works for me to, as I have a blu-ray player too. Either way, its still a great value compared to any other place out there.

  7. Visitor [Join Now]
    bseipert [visitor]

    I would not pay more than $1.25. I only go to redbox on the rarest occasions now. I wouldent go at all if it was any higher. I use netflix to watch all my movies. I can get my movies at the release date and not weeks latter.

    • Visitor [Join Now]
      tinybrat [visitor]

      You can’t get all movies on release date. Netflix has the same restrictions as redbox.

      • Visitor [Join Now]
        Brad [visitor]

        Not only that, but the new releases (which, as you said, aren’t new — most have a 28-day delay) can take weeks to receive.

  8. Visitor [Join Now]
    michael hipsman [visitor]

    I think a 1.25 price point for regular movies would be reasonable and a 1.50
    price point for Hi-def is Ok. But if you order rent 3 or more movies the the Kiosk
    should refigure cost to $1 per movie

  9. Visitor [Join Now]
    Farva [visitor]

    Especially since almost half of their new releases are now on a delay there is no reason that their regular DVD rentals should be more than $1.00 a night.

  10. Visitor [Join Now]
    Moviewatcher [visitor]

    Redbox will kill the hen that lays the golden eggs if it keeps raising prices….
    People will flock back to Netflix whose prices average $1.25-$1.50 depending on the monthly subscription…..

    coupled with Redbox’s limited selection, and it will become a no-brainer!.

  11. Member [Join Now]
    jakoblin

    I rent in modesto, ca. Guess I will be staring at 9 flys on the wall for good ol entertainment.

  12. Visitor [Join Now]
    John Small [visitor]

    I really wish they would commit to the higher price across the board. It is the only way to make this company profitable and a longer term success. Netflix figured it out with throttling. Coinstar needs to take the plunge to $1.50 sooner rather than later. The sheep will keep renting.

  13. Member [Join Now]
    tlochner

    netflix wins .. let them raise their prices … bb express wins too

  14. Visitor [Join Now]
    UBM [visitor]

    What I’d rather see is that Redbox cut out giving FREE CODES altogether.
    Just give you the one time code when you sign up (DVDONME) and after it has been used, lock it out of use by that person’s household info.
    (Credit Card comes through to process, oh it is tied to this address, sorry no free code for you buddy! Full Price Charge!)
    Kill the free codes, and just rent for $1.
    It’s all the FREE CODE scammers that make prices go up, or haven’t you
    guys/gals figured that out yet?

    • Visitor [Join Now]
      rb [visitor]

      No Way UBM! I don’t think Redbox should cut out the codes completely. They pretty much got things under control with their 1x use codes that you get one per month/text, or that you get at certain stores when you buy certain items/promotions. Why do YOU want to kill the codes completely? If anything, I think they should give a 1x use code one time weekly instead of monthly each Monday so when the person returns the dvd on Tuesday they will be tempted to rent/pay for one or two new release Tuesday dvds. More $ for Redbox! I can’t think of any way any one right now ‘can’ or is ‘scamming’ using the 1x use codes… Also, I think ‘Breakroom’ is the code for newbies. I know on some of my local Redbox kiosks it actually has a Redbox poster on them that invites newbies to try out the kiosk using the code ‘Breakroom’…

      • Visitor [Join Now]
        MadRabbit [visitor]

        I have a better idea. How about using the codes as a reward system? When you rent X number of movies, you receive a code. Keep the first free one, with the limit suggested by UBM, and then start the code reward system. DirecTV does something similar with its customers based on how long you have your service, and it works well.

  15. Member [Join Now]
    ChadCronin [chadcronin]

    After thinking it over, I think people will pay whatever they set. I know plenty of people who think $1.99 or $2.99 is the starting price for a new release and several pay blockbuster $4.50 to $5.50 a movie still. Some of us might say “I’m not renting” but if there isn’t a cheaper alternative and you get bored or really want a certain title, then I imagine alot of us would return. I still don’t see Hollywood putting out enough titles to justify me even renting 1 title weekly at this point, that’s out of Redbox’s control, except perhaps signing with more smaller studios.

    • Visitor [Join Now]
      rb [visitor]

      “several (people) pay blockbuster $4.50 to $5.50 a movie still”… “SEVERAL’ is the operative word, as in a handful of people/customers are still willing to pay that high price. With so few people still willing to pay such a high rental price for a new release day &date dvd might be why Blockbuster is on the verge of bankruptcy!

  16. Visitor [Join Now]
    freebbeezz [visitor]

    Blockbuster Express machines are still only a $1.00 and I have both in my town. I guess I would just stick to using Blockbuster, they also have free codes like Redbox.

  17. Visitor [Join Now]
    Bobby Joe [visitor]

    I’d easily pay $2 a night for movies. As with everything else, the stockholders will expect a percentage increase in dividens each year and once the local rental stores close up and rebox and netflix are the only source for rentals, then how does $5-$6 a night sound.

    I can see in my minds eye a monthy fee for redbox for all the movies you can rent like Netfix just don’t have to wait for the mail, you have to wait your turn on the list to pick it up.

  18. Visitor [Join Now]
    Stacyc2008 [visitor]

    I understand that companies prices go up, however people see an increase and think “ugh, here we go, now it will keep going up.” I have rented hundreds of movies from Red box and consider myself a VERY good customer and I will continue to rent if the prices go up .15 – .50 but if I see it continue to raise I will stop renting. Oh, and “John Small” she said she rented 5 movies a week and CUT BACK to 2 movies a week since the price raise, that means she WAS and STILL IS a good customer! Like most people, when prices go up, the amount we purchase goes down. Most people are on a budget now-a-days. It’s life.

  19. Visitor [Join Now]
    Thomas Vath [visitor]

    It already has me reducing the number of rentals, as I live in Albuquerque and the $1.50 rate is TOO HIGH. Liked the fact that it was only $1.00. No need to change the marketing, was once their best selling point.
    Others tell me that it is not fair to charge more here than in other parts of the country. We all feel like we are such a small state that they feel we really don’t care.

  20. Member [Join Now]
    skitchen

    I would stop renting from Redbox. It seems like everyone wants to have a really good gimmick to suck you in and then raise once they have you and hope some people stay on. As with a lot of people with tight budgets, I would wait for the next gimmick!

  21. Visitor [Join Now]
    Hayin [visitor]

    I am cutting down on my rentals from Red Box. Found out DVD Play is still charging only $1, and they also have few movies such as Avatar, Tooth Fairy, Book of Eli etc. came out much earlier than Red Box.

  22. Visitor [Join Now]
    Wendi [visitor]

    Well isn’t that always the way companies seem to be doing business these days…greed,greed,greed. I live in Michigan and things are tough here and those “little” increases would be just another “little” burden. But at least it’s not something we can do without. I would surely think twice if the price here goes to $1.25. We can’t afford to go to the brick and mortar stores anymore so we depend on Redbox for our entertainment.

  23. Visitor [Join Now]
    Toysurfer [visitor]

    I live in Spokane, and I can tell you that when the price went from $1 to $1.15 we were annoyed, and we became more inclined to rent 1 movie at a time instead of 2. If the price goes above $1.50 we would probably rent half the movies per week that we do now, or subscribe to Netflix.

  24. Visitor [Join Now]
    gandhawk [visitor]

    I have never seen so many complainers and cheapscapes. “I do not mind I only use the free codes” or “I won’t pay over $1.50”. Think about what it costs to see a movie at a theater or the price of a 2 hour day/evening out with your family. If I pay $1 or $4 to see a movie at home I feel I am ahead. Prices will go up for movies just like everything else. Get used to it and quit complaining. I support Redbox and Netflix just like most of the posters in this forum. The rest of you need to wake up and face reality. If you really do not want to pay for a movie rent from your local library.

  25. Member [Join Now]
    jrico1983

    I would be discouraged if the price goes up. It just seems that any corporation now a days just wants to make more revenue, and at who’s expense? Us the consumer. I think that they hit it on the dot when they ran with this idea, “why reinvent the wheel?” If the price increases I will have to go back to netflix, also for you FREEBIE goers, this might be an effect of all those free DVD’s, there is nothing free in this world. The effect of everyone abusing all those codes is one of the probable issues they may be raising prices, so this might be an idea they might just get rid of. Just a little something to think about. At NetFlix I will possibly be able to rent more movies during the month, without the additional night fees, this is something I will take into account if the price increase. NO ON THE INCREASE! :-(

  26. Visitor [Join Now]
    MadRabbit [visitor]

    For the record, I have no issue with Redbox getting another quarter or so. Inflation is a given, unfortunately, and they have to keep up with it just like the rest of us. I think if it got much higher than that, though, I’d have to start curtailing my use as well…

  27. Visitor [Join Now]
    Cheapo [visitor]

    I rent a movie and it is stupid I’m out $1.05, no big deal. I rent a movie for $1.50 & up. I would be very picky as to what I rent. What I’m saying is I rent a couple of movies a week now. If the price goes up, I “might” get 1 a week.

  28. Visitor [Join Now]
    Asis [visitor]

    A price more than a dollar will have me thinking Netfliks.

  29. Visitor [Join Now]
    lee [visitor]

    in my area the only option is redbox and blockbuster but the memberships aren’t great, which is why we stopped using hollywood which is now closed anyways. so if it went up in price, it definetly would prevent me from renting as many movies per month as I do. we watch more movies then we do regular tv. but if blockbuster express came to my town and it was only $1 then i would def. switch to them

  30. Visitor [Join Now]
    slotr1 [visitor]

    A 25% increase is high even if it is only 25 cents and will make me think twice before I rent again.I will search out codes all the time now.

  31. Visitor [Join Now]
    Nate [visitor]

    It is up to $1.25 in Nevada, Iowa, too. Anything higher than that will probably drive people away.

  32. Visitor [Join Now]
    Honey [visitor]

    I jus wanna say i was shocked when I went to go rent a movie and it charged me over a dollar. if that is not the price dont advertise the $1 rental..this was a turn off for me.

  33. Visitor [Join Now]
    Lindsey [visitor]

    I go to our local redbox about twice each week. In a month, at $1.00 per rental, I spend about $8. The price per rental has just been raised to $1.25 which puts us at $10 per month, plus tax. I figure I might as well pay the extra five dollars at $15 per month to netflix to get a huge variety and unlimited movies.
    With the redbox price higher, I would switch to a more valuable service.

  34. Visitor [Join Now]
    Bob [visitor]

    Think about it, it is a 25% increase. How many other businesses could try to get away with that?
    Given that most of Redbox’s are geared to teenies, are older B movies, & are generally crappy, I don’t use Redbox that much. How about some excellent four star movies from the 50s, 60, 70, etc.?

  35. Visitor [Join Now]
    DAVID NGUYEN [visitor]

    THE DETROIT AREA HAS BEEN HIT WITH $1.25 RENTAL PRICES!!!

  36. Visitor [Join Now]
    milford [visitor]

    indiana just went 1.25. i am going back to netflix.

  37. Visitor [Join Now]
    milford [visitor]

    just found a blockbuster express in my indiana town. goodbye redbox!! your redbox said 1.00, you charged me 1.25. you lied to me, so goodbye forever. welcome blockbuster express. you can have my 250 dollars a year.

  38. Visitor [Join Now]
    AngryCustomer [visitor]

    I rented a movie in NY on sunday for $1 when I returned it yesterday and started browsing it said $1.25. Yet the machine says $1. Play games with the consumer and lose them. Goodbye greedy turds.

  39. Member [Join Now]
    chessduffer

    They have an issue here in Oregon anyway. The Box has advertised everywhere on it $1 Rentals, even on a removable attached sign which they could easily replace. It is illegal here in Oregon to advertise one price and sell it for another.

  40. Visitor [Join Now]
    Andy [visitor]

    $1.25 is OK – Anything higher is a no go…