Redbox Testing Pricier Rentals
Posted November 3, 2009 08:16 AM by Juan Calonge
Rental kiosks machine operator Redbox is now testing two different pricing models. Residents in the Albuquerque, NM area who approach a kiosk will now find they are charged $1.50 a night; in turn, Harrisburg, PA is getting a full $2 per rental per night. An analyst said that higher prices could defuse the conflict between Redbox and several movie studios.
Eric Wold, analyst with Merriman Curhan Ford, thought that even with the higher rental prices, consumers would view the value and convenience of Redbox for the immediate gratification of a DVD rental as superior to the other rental options out there.