Redbox testing $1.50-$2.00/night rentals

[KennyJ]

http://www.insideredbox.com/redbox-begi ... al-prices/

Several commenters on this site have claimed recently that Redbox kiosks in their areas have been charging more than $1 per night for rentals. The kiosk vendor confirmed yesterday that it is currently testing two different pricing models, one in Albuquerque, New Mexico and one in Harrisburg, Pennsylvania. Kiosks in Albuquerque are charging $1.50 per night, and Harrisburg machines are charging $2 for the first night, with the customary $1 per night charge for additional nights. The higher test prices are for both new releases and catalog titles in both areas.

[purpopcorn]

That's okay! There hasn't been a new release for a longtime that is worth even 10 cents a night. Our family has only used Redbox a few times. If we really like the movie, we usually buy the DVD when it comes out. Other than that, we can wait to get it through Netflixs. Except for the new Star Trek movie, there has not been a movie all year that I can't wait to see.

Netflix Instant and the occasional movie through the mail is all I need.

[teddman]

I think Redbox is heading for a crash in the next year or two. They're rolling out a ridiculous number of machines (something like 26,000 in the last fiscal year) and they're already experimenting with price increases?

You don't do that until you're well established as a service people have come to take for granted, they're still developing brand recognition. And Redbox has looming battles with several movie studios that are refusing to allocate them rental discs.

[bobpratt]

I just drove by a Blockbuster Store in south Tulsa that is now closed and empty......

[kc8pql]

I just drove by a Blockbuster Store in south Tulsa that is now closed and empty......

The last Blockbuster in a 20 mile radius from here just announced it was closing next week.

[mega1026]

Blockbuster stores are dropping like flies around here

[KennyJ]

Blockbuster stores are dropping like flies around here

I believe they just announced the closing of a bunch of stores in order to raise money to pay off debt. Their plan is to start offering kiosks and increasing their online streaming/downloads and DVD by mail presence.

I think they may be too late to the game, but they do have a known brand and it's really their only winning strategy at this point.

[QuantumIguana]

I think Redbox is established pretty well. Videostores are going the way of the horse and buggy. Redbox is conveniently located where people are going anyway, grocery stores, drug stores, McDonald's. The McDonald's placement is both ingenious and indisious. You're going to get a movie at McDonald's, so you might as well get food there, and then the next day, you're back again to return it, so you might as well get more food there.

Sure, plenty of people are going to just walk in, get a movie and walk out without getting food. But it has to bring in extra food sales.

I don't use Redbox very often, but its useful if you want a new release. For stuff that's not new, I have Netflix. If Redbox can charge more and maintain their business, they probably will.

[KennyJ]

The only way Redbox would make sense for me is if it was on my way to/from work or at a place I go to daily (unless they put one at my work or in my home, nothing would qualify).

The one time I tried it (actually, it was a different company) was at the grocery store. Well I don't go to the grocery store daily -- so it's an extra trip. While the store isn't far, I've been so conditioned by Netflix and VOD that actually having to go somewhere to return a movie seemed so foreign.

In any case, my $1 movie rental ended up being a $6 movie rental. I've never rented again.