Not long after the calendar rolls over to 2015 you’ll find the prices at your nearest Rebox kiosk have rolled over as well.
Outerwall, the parent company of Redbox, announced this week that it will raise prices at its popular kiosks starting on Jan. 6, 2015. The new prices will be as follows:
- DVD rentals will rise from $1.20 a night to $1.50
- Blu-ray rentals will increase from $1.50 a night to $2.00
- Game rentals will go up by 50% from $2 a night to $3
It seems that the stock market liked this news as Outerwall’s stock ended the session on Monday with an increase of 12.32% to close out the day at $71.39 a share.
This is only the second time in 12 years that the price of DVDs has gone up, and the first time for both Blu-ray and video games since they were introduced into the red kiosks.
The price hike follows the latest report on the company’s revenue for the third quarter. Outerwall posted revenue of $438 million for the three months ending in September, a decrease of 11 percent from the same time period last year. Redbox accounts for around 79 percent of Outerwall’s revenue with the majority of the remainder being made up from the Coinstar kiosks that the company also operates.
Where as many video rental stores blames Redbox for their closures, one has to assume that the kiosks are beginning to feel the pinch from the increasing competition of streaming services such as Netflix and Amazon Instant Video. With the growth of original content, from these online services, coupled with deals that see movies arriving in their rosters much faster than in years past, the impetuous to rent films on physical media has to be declining.
You have only a few weeks left to enjoy your rentals at the old prices, so enjoy yourselves.