As reported a little while ago, Redbox has been engaged in price testing across several markets in the U.S. Scott Di Valario, CEO of parent Outerwall, has revealed that the company continues to test at three different price points in 11 markets.
Said Di Valerio:
“We’re continuing to monitor the results and we’ll make a determination, if and when to put a price increase in place . . . From a financial perspective, [any] price increase … would help to offset the expected declines in the market.”
Redbox’s last price hike brought the company’s rental price to $1.20 for DVDs and $1.50 for Blu-ray discs. According to B. Riley & Co. analyst Eric Wold, some of the test locations and price points include:
“Portland, Ore., for $1.35 for DVD, $1.50 for Blu-ray; Cincinnati, Ohio: $1.35 for DVD, $1.50 for Blu-ray; Reno, Nev.,: $1.35 for DVD, $1.75 for Blu-ray; Colorado Springs, Colo.: $1.35 for DVD, $1.75 for Blu-ray; Salt Lake City, Utah: $1.50 for DVD, $2 for Blu-ray; and Albuquerque, N.M.: $1.50 for DVD, $2 for Blu-ray.”
Are you in one of these test markets and have you noticed a price change? If one of these new price points becomes permanent, will that change your Redboxing habits?
[via Home Media Magazine]
No I am not in one of them…..
But the price change is no big deal for me…
I stopped using the Box…
I get everything from NetFlix in the mail.. Are online…
Are Warner Bros online…
Yes! RedBox will need to up the price.. Not a thing they can do about it..
The cheap RedBox day’s are over… Sad but true!
So if you don’t use the box, why are you here? Are there no other bridges for you to troll under?
Dano obviously has mental issues.
I have a great time with all the feed back I get here….
A real gas! Ha! ha!,.,,,
I haven’t seen any price testing where I live, but I would still be a renter at a SLIGHTLY higher price. I could handle $1.50 for a dvd, maybe $1.75 for bluray. I don’t rent games. Lets face it, $1.50 is reasonable, especially compared to $12 for a movie ticket, or $4 for a rental at the mom and pop store. Costs go up, companies have to offset those costs, its no different than the millions of products on store shelves that go up over time. Quick entertainment for under a couple bucks is still a good deal to me.
I think $1.50 for DVDs, $2 for Blu-rays, $3 for Games would still be a reasonable cost. There will always be some cheapskate thinking that’s too much but in reality it’s not that much more than before, if you are only a casual movie watcher it’s cheaper than your alternatives ($10+ for a ticket at a multiplex, $15 plus the inconvenience factor of Netflix). My area isn’t a test market, it’s a rural region where to get to the nearest theater you have to travel an upward of 30-40 miles and high speed internet hasn’t been fully developed yet.
As a comparison, a nearby video store that was forced out of business by Netflix/Redbox a year ago was charging $3.50 / day for new releases(DVD and Blu-ray). They had titles out on day one though instead of this 28-30 day wait. Once Redbox had it, they dropped the price to $2/day. I thought that was reasonable at the time for a store with a ton of overhead unfortunately many did not which sent them into bankruptcy.
I don’t see any issue with an increase to $1.50. People have very short memories – about 10 years ago I was paying $4-5 for a new release at BlockBuster. Even today if I want something On Demand from Comcast (the devil), it’s like $4-6 for a new release.
Netflix is awesome and we heavily utilize it but it doesn’t get new releases quickly at all. So even at $1.50 it’s a huge bargain.
I don’t know how people suddenly forgot how expensive things used to be. Everyone apparently thinks all content should be free 100% of the time.
It’s a test market pricing so I’m sure the people will make them think twice about
Gouging prices. Just like gas – if we buy it at $4 a gallon they will raise it more
This was advertised as a cheaper way of watching movies and it still is but if
It gets to 2-3 a day (like blockbuster)
I will look elsewhere as another new type of company is just around the corner.
I am not sure why there is so much uproar about the price increase. Even if it goes to $1.50 for DVD and $2.00 for BD, it is still far less expensive than any digital download option. I no longer get Netflix by mail, but my recollection is that you really have to be on top of the timing for New Releases to properly optimize the cost, and now that they don’t ship on Saturdays, it is even harder to make sure you get the titles you want when you want them. Also, all it ever took was 1 disc to go missing in the mail to completely throw off your months costs as you sat and waited for their system to acknowledge the lost disc and send you another.
At the end of the day, Redbox still has the best pricing and easiest selection for new release titles.
I have NetFlix in the mail. Three out at a time… I get the new dvd’s I ask for just fine.. I send a movie back M,T & W. Get a new one in the mail W,TH, Fri.
99.9% no lost disc. And very fast turn around..
And have the streaming also.. RedBox is ok.. But it just does not cut it for me…
And then the drive to take the disc back.. NetFlix just comes to my front door.
But this is just me….
I’ll to stop using RB as I’m on a fixed income!
Get Netflix for $7.99 a month. I tuned it down to less than 1080p on DSL and have never had an over charge. We run Netflix 18 hours a day between the two retired people here. A real bargain.
Getting and returning it is a pain as I”m short on time and then there is the weather. I have plenty to watch on Netflix. The exception will be “Jurassic World” which I must watch on the big screen. But movies like that are few and far between.
You got it…………….And said it right 100%
try movies planet.tv i’ve been watching some movies three week before dvd release all you need is an email address and enough sense to weed through all the ads but i’m sure you can figure it out (p.s. almost all are in high def (1080 p))
also try shush.se for t.v. shows you can watch them on movies planet but you have to watch all of them and if theres 8 seasons it could take forever . with shush all episodes are listed for all previous seasons and new are added weekly