Redbox has announced that, beginning December 2, the company will raise its disc-rental prices slightly. DVD rentals will go up 25 percent, from $1.20 to $1.50 per night. Blu-ray disc rentals will go up 33 percent, from $1.50 to $2 per night. The company will also introduce a new content recommendation tool.
Redbox is raising its DVD rental price by 25 percent, in a move that could improve the company's stagnant bottom line and help the Outerwall Inc. unit invest in new technology.
At the same time, Redbox is launching a recommendation engine similar to the one that has contributed to the success of competitor Netflix Inc. by steering customers to movies and TV shows they are likely to enjoy.
"Creating a business plan that allows us to make these investments in the future is important," said Redbox President Mark Horak, who said the company also is investing in mobile technology and the more efficient stocking of its kiosks, which are located in grocery stores and other businesses.
Beginning Dec. 2, DVD rentals will cost $1.50 a night, up from the current $1.20. Blu-ray disc rentals will rise to $2 a night, from $1.50, a 33 percent increase.
The complete MarketWatch article can be found here.