Redbox Logo

Whether anyone likes it or not, Redbox has announced another price change in the upward direction. What was once a nice $1 movie rental will now cost you $1.20; at that price, it doesn’t sound like a huge jump but let’s do the numbers and see how much this price increase will affect their overall revenue, shall we?

5000 rentals @ $1 = $5000
5000 rentals @ 1.10 (current charge) = $5500, a +$500 increase
500 rentals @ 1.20 (future charge) = $6000, a +$1000 increase

Okay, that’s some easy math but let’s just say they rent out 63K rentals per day – that’s a whopping $75,600, a +$12,600 every day! Not too bad considering it’s “only” a .20 cent increase per rental.

This is the second time Redbox has increased their daily rental rates and I would assume this will not be the last. By that time, all the poor Blockbusters will be out of business and Redbox will be just as expense as they used to be.

Sigh. What do you guys think?