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]
