Coinstar to Raise DVD Rental Prices, Maintain Blu-ray Rental Prices

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Coinstar to Raise DVD Rental Prices, Maintain Blu-ray Rental Prices

Posted October 28, 2011 08:00 AM by Nayan Ashra

Coinstar, owners of Redbox rental vending machines, have pledged to maintain rental prices for Blu-ray Discs and video games, perhaps capitalising on Netflix's recent weakness but have raised the prices on DVD rentals by 20%.

Blu-ray rental prices remain at $1.50 per night and video games will remain at $2.00 per night. In contrast, Coinstar have raised DVD rental prices by 20% from $1.00 per night to $1.20 per night to combat lower than expected DVD rental figures. Investors haven't received this news and shares are down 12% despite a 90% rise in profits and a 22% rise in revenue.

While there is bad news for DVD renters, it is undoubtedly great news for Blu-ray as the difference between Blu-ray and DVD costs have been minimised and this could drive further adoption of Blu-ray in rental markets and hopefully force NetFlix to reconsider their 60% price rise of recent times.