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Redbox Testing Pricier Rentals
Posted November 3, 2009 08:16 AM by Juan Calonge
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Rental kiosks machine operator Redbox is now testing two different pricing models. Residents in the Albuquerque, NM area who approach a kiosk will now find they are charged $1.50 a night; in turn, Harrisburg, PA is getting a full $2 per rental per night. An analyst said that higher prices could defuse the conflict between Redbox and several movie studios.
Eric Wold, analyst with Merriman Curhan Ford, thought that even with the higher rental prices, consumers would view the value and convenience of Redbox for the immediate gratification of a DVD rental as superior to the other rental options out there.
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Source: Home Media Magazine |
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Icedburden
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Nov 03, 2009
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Are there any Blu-Rays in Redbox's yet? |
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Big Z
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Nov 03, 2009
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I'm in FL, and we have blu's in redbox's down here. They start out at Walmart Redbox's, and then get rented and redistributed about the countryside, which makes them difficult to track down.
As for the Pricier Rentals... I think it's garbage. I pay $1 for ease of access and lack of choice when selecting. If prices go up, i'll be going back to Blockbuster. If Redbox does increase prices, they are going to open the door wide open for Blockbuster to get on its feet...competition = usually good for the consumer.
Blockbuster now has rental Kiosks (hopefully keeping Red at $1), and has a "quasi" netflix, download program going (althought I don't know the prices of either). Good idea for BB? Good end result for renters? |
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TTUBatfan2008
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Nov 03, 2009
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The studios won't be happy until Red Box is charging $5-6 per night. Remember that they charge $4 on iTunes and Amazon for new releases, and that is with the alleged "convenience" of downloads making it cheaper to supply them to consumers. |
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rmainhammer
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Nov 03, 2009
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Redbox needs to man up and take a stand sometime. While I don't use it very often, I like the idea of its convenience and low price, especially when I don't have time to browse a brick and mortar rental store. This is America, after all, where capitalism and competition are supposed to reign, and the customer is always right. I can't see Redbox going any higher than $3 rentals before they are driven out of business by studio demands. |
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ShaggyDude
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Nov 03, 2009
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Whats the conflict, exactly? Doesn't Redbox have to buy special DVDs in order to rent them, just like Netflix or Blockbuster or any other rental shop? I've never seen the exact prices, but I've heard that in order to get rental licenses you have to pay more than twice the price for special "rental" DVDs, games, and blu-rays. If Redbox is paying for their rental licenses, I don't see what kind of case the movie studios would have against them. What I'm guessing is going on is the rental licenses are being jacked up and Redbox needs to readjust their prices to stay in business. |
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LynchFan
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Nov 03, 2009
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I would use redbox even less than I do now if they upped the prices. They can be that cheap because of no overhead to speak of (no store location/employee costs). There are plenty of places like Family Video or Drug Mart that have $2 rentals while having a building with electricity/gas/employees, etc. Redbox has no reasonable justification for this!
Honestly, I don't know why more people don't take advantage of the local library like I do! It's not as "on demand" but I get to watch everything I want (including new releases) for FREE!!! No blurays there yet though...that's the trouble in paradise! |
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Stephie_is_a_dork
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Nov 03, 2009
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That sucks! I love the $1 BLU-RAY rentals that Redbox's in my area offer. I just wish Redbox made Blu-rays searchable online by title or location, just like DVDs are.
BigZ: Other than lack of selection and lack of staff, the reason Redbox is so cheap is because it's a 1-night rental. If you keep your rentals for 5 nights like Blockbuster, you'll end up paying as much as Blockbuster. Sooo, if they raise their prices to $2, they damn well better make them 2-night rentals! |
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thedarkangel1975
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Nov 03, 2009
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Why should Red Box go up in price? They have a minimal selection and if they start raising prices, why go there instead of Blockbuster, Hollywood video, etc. Movie studios and other businesses just don't get it. They like to drain every cent from the consumer until people say screw it. Then they businesses beg the government for help. This is why I really stopped going to the movies. Every six months the prices seemed to raise a quarter to fifty cents. Now prices at Blockbuster and Hollywood Video are what matinees use to be. Hell the movie theater only has one matinee showing on friday, satturday, and sundays by me now. |
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Vonscoot
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Nov 03, 2009
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@ShaggyDude
Redbox started having issues with some studios about a year ago and were no longer able to get the titles directly from the studios/distributors. In order to still have the movies that customers were wanting available for rent, they had to start buying some titles from retailers. Our local Redbox rep has been buying movies in bulk from us for the past year. Some local video rental stores (Family Video) have been buying their movies from us as well, especially when our new release prices are adjusted down for competition. |
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Dynamo of Eternia
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Nov 03, 2009
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in response to Vonscoot's post (who's post was in reply to ShaggyDude):
That just seems silly on the part of the studios (I'm not saying it isn't true, I'm just saying it seems silly). They refuse to sell the discs or whatever for the normal, higher fee for rental companies, so then Red box just goes out and buys the discs at a lower cost. The studios aren't stopping them from renting when all is said and done, and they (the studios) are just screwing themselves out of money that they could be earning. That's just really messed up if all of this is true. |
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LynxFX
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Nov 03, 2009
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$1 per day is the limit. Any higher and I might as well go to Blockbuster. There have been many occasions when I didn't get to return the dvd by the next day but I didn't sweat the extra dollar to keep it one more day. Now it would be another $2 so $4 for a 2 night rental when you can get a week and more for the same price at Blockbuster. |
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BLURAYSONYES
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Nov 03, 2009
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I honestly prefer blockbuster because of their wider selection and most likely theres always a copy for you waiting. I dont have to worry about returning it the next day on time. I could keep it for a week and still dont get charge a late fee. If I have questions regarding a movie...I ask.
For the Redbox their selection is very limited a very few copies of their movies. Only a few blu ray titles. You could rent a movie at any kiosks machine and return it to another kiosks machine that is 10 miles away and because of that reason a single copy of that dvd being return could be slim and never see that title at your local redbox again. Sure $1 is a great deal but more likely Ill be watching the movie 1-2 days after if I have the time. If I have a question reguarding a movie or the machine I gotta waste my cellphone minutes.  pooh!... |
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DR BLU NEO
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Nov 03, 2009
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I think we've been lucky to get it for a dollar this long. I'd still be happy to pay $2 per rental. No more than that though. |
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DR BLU NEO
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Nov 03, 2009
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I do enjoy the convenience and automation of redbox. I don't dealing with humans! |
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andyn1080
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Nov 03, 2009
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HAHAHAHAHA........ FAIL!!!!! Never really rented much from redbox but if this is true its a huge FAIL! the only good i saw in it was that when the kids and I went out food shopping they would usually get to rent a movie. Stupid movie vending machine! |
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thedarkangel1975
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Nov 03, 2009
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What are you talking about Dr Blu? I am always stuck behind someone who has no clue what movie they want or how to work the machine. It is just like self check out, humans have no comprehension, it is a wonder we have come this far... |
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fly4rabbi
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Nov 03, 2009
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I only rent a few movies a month, but I have not been to a family video or blockbuster in a very long time. I love the cheap price as I dont keep the movie longer then 1 night anyways. Our local RBs dont have Blu-ray yet, so if the price goes up to $2, I would be better off renting a Blu from family video for only $3 more. Hoping they dont go up |
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phatrat1982
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Nov 03, 2009
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The c-store I work at has been trying to get Redbox for a while, around here, if the store gets any say in pricing we'd charge $5 a night if we could get away with it. |
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superdrag ninja
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Nov 03, 2009
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I usually rent 1-2 movies a week at our local Redboxes. I do that because they're only $1 (plus tax). If the price went up, then I'll go back to waiting over a month of not renting anything and then getting a Netflix temporary account for a month. |
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#1 Rush fan
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Nov 03, 2009
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Has the movie and rental industry become so trivial as to be reduced to some vending machine at a supermarket??? Something is just plain wrong with the "redbox" formula...it's just plain wrong... |
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