Redbox to Increase Their Daily Rental Charge…again!
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?
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Blah - it’s still the cheapest and most convenient way to grab the latest Xbox title and PWN some baddies.
Personally I’m a HUGE fan of RedBox and while the price is a major factor in that relationship, they can stand to hike the price a bit - it won’t chase me away. The alternatives are so weak, they have room to expand a bit before they are in danger of losing most of their users.
That being said - price changes don’t go unnoticed, and they might be better off doing all of the math, and setting a static price rather than moving it up repeatedly.
That’s my $0.02