I have been seeing reports over the last few days from commenters gman69 and ladoblaze that they are seeing a price increase to $1.15 (+tax) per night in their area. This comes after other price testing late last year.
Ladoblaze says they are seeing this in Washington State – are you seeing this in your area?
While price testing is nothing new, it does come as a bit of a surprise so close on the heels of Redbox’s recent deals with some studios that put a 28-day delay on new releases, and after Coinstar reported a tripling of profits over last year.
Some critics of the Redbox business model on this site believe that Coinstar may be using some creative methods to hide the fact that Redbox’s important “profit-per-kiosk” numbers are actually sliding as of late, even amid the rising profits that are being reported. Could this be the reason for this 15% price increase? If prices went to $1.15 in your area, would that cause you to think twice about picking up a rental?
With competition heating up from Blockbuster Express in some areas, it looks like we may have a fight for marketshare on our hands. And, as long as NCR has the smaller operation, they can continue their workaround to get new releases on the day they come out, bypassing the embargo. Many of our users who were previously loyal Redbox customers are jumping to Blockbuster Express due to this reason, and the fact that promo codes are more abundantly available for the service right now.
What do you think: Could Redbox – even with a massive 20,000 kiosk head start – be in for some serious competition here? Will price, promo code and new release advantages cause you to seek out Blockbuster Express whenever you can? Let us know your thoughts (and if you have seen this recent price increase) in the comments…