Printed from http://www.electronista.com

Redbox hikes rentals to $1.20 per day

updated 07:55 pm EDT, Thu October 27, 2011

Price jump blamed on debit card fees

Redbox has announced that its DVD rental service soon will cost customers $1.20 per day, marking a 20 percent price jump from the current rate of just $1.00 per day. Parent company Coinstar blamed the fee hike on an "increase in operating expenses, including the recent increase in debit card interchange fees as a result of the Durbin Amendment."

Netflix recently changed its pricing structure, splitting its streaming service and DVD rentals into two separate plans. The chance was met with widespread criticism and blamed for slashing the company's subscriber base by 800,000 customers.

It remains unclear if Redbox will suffer the same fate as its competitor. Although the Durbin Amendment is expected to bring changes to the debit card fee structure, it also provides an option for merchants to apply surcharges when cards are used instead of cash. Redbox appears to be spreading the cost along to all customers, regardless of payment method.

After the Redbox fee hike was announced, Coinstar stock (CSTR) has taken a 10 percent hit in after-hours trading. [via TechCrunch]



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

Prong PWR Case

Ultimately there's one thing we all want from smartphone accessories; we want options. When it comes to keeping our iPhone charged, we ...

iHome iBT74 Color Changing Bluetooth Speaker

There's no reason why your tech can't look good while doing what it was designed to do. That's the reason that sports cars look good a ...

Logitech Gaming Daedalus Prime Mouse

Logitech Gaming continues to expand upon its peripherals line, with each one looking to fit neatly into a breadth of gaming needs. Bui ...

Advertisement

toggle

Most Commented