The $1 per night DVD rental popularized by Redbox and imitated by others has been called many things by many people. Brilliant, unsustainable, consumer-friendly and devaluing have all been used to describe it.
Redbox has tested higher pricing in limited markets, but the buck-a-night price point has generally stayed put over the years. Now NCR-owned Redbox rival Blockbuster Express plans to roll out “premium” pricing by way of a new deal with Universal.
The L.A. Times is reporting that under the terms of the new deal, “Universal and NCR have agreed to test charging more for certain titles in a small number of kiosks during the first 28 days. Under the tests, NCR is expected to charge a higher price, possibly $3, for the first night and a lower price, such as $2, for subsequent nights. Then, after 28 days, those discs will revert to the standard $1-per-night price.”
Universal Home Entertainment President Craig Kornblau offered the following on the new deal:
“Our agreement to test premium day-and-date offers and new DVD sales will help us identify new outlets for our movies while giving our customers the flexibility and choice they want in their entertainment purchases,”
Are consumers going to pay double or triple the usual kiosk rate to rent a Universal title the day it comes out? Is the increased price worth it to rent a movie four weeks earlier? Tell us what you think in the comments.
(via The L.A. Times)