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

toggle

Most Popular

Advertisement

Recent Reviews

JBL Synchros Reflect in-ear headphones

All headphones are not created equally, especially when it comes to use during vigorous activities or workouts. Over-the-ear headphone ...

Linksys WRT1200AC Wi-Fi Router

Once upon a time, a brand-new Linksys router showed up on our doorstep. So we gathered some network-minded friends together, and hooke ...

Rapoo A300 Mini Bluetooth NFC Speaker

The Rapoo Bluetooth Mini NFC Speaker is a little metallic box about the size of a baseball. In spite of its small size, we were very p ...

Advertisement

toggle

Most Commented

 
toggle

Popular News