Redbox Price Increase
October 28, 2011 by staff
redbox price increase, Starting Monday, customers will Redbox to dig a little deeper into their pockets for a movie rental. Bellevue-based Coinstar, Redbox owner of the company, said Thursday it is boosting the price of a standard definition DVD and 1.20 and 1 due to an increase in operating expenses.
Chief Executive Paul Davis said a change in exchange rates of debit cards was partly to blame. In a conference call withanlysts, specifically mentioned the so-called Durbin Amendment, a proposal by Sen. Dick Durbin of Illinois, which entered into force on 1 October.
The new law reduces the average amount that merchants pay by debit card transactions, so that banks are compensating payments deficits elsewhere; Coinstar’s going the increased costs to its customers Redbox.
The Redbox price increase, announced quarterly earnings of Coinstar report comes after “several months of testing” and aims to achieve “the right balance between keeping prices low, while facing the rising costs of operation “said Davis.
Was also noted that Redbox first price increase in eight years.
Coinstar to try to lessen the impact of cargo in November and only one for first time customers who buy a DVD online and pick it up at a Redbox machine. Additional nights and will cost 1.20.
Prices for Blu-ray DVDs will remain at 1.50 and rent for the night and kept the game at 2.
Coinstar said its third-quarter profit jumped 90 percent to 37.1 million, or 1.18 and a share, well above the 88 cents expected by Wall Street. Revenue rose 22 percent to 465.6 million y.
Redbox, which accounted for 84 percent of the income of Coinstar, probably benefited from a reaction of customers to Netflix. Last summer, the largest video subscription service announced plans to raise prices by up to 60 percent from September 1.
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