Despite the fallout that Netflix had with its customers earlier this year, it looks like customers who left the service didn’t hop over to one of its main competitors: Redbox. Earlier today, Coinbox released the Q3 2011 financial report for its Redbox DVD rental service, and it didn’t do as well as expected. Redbox made $465.6 million in revenues last quarter – just a bit more than analysts’ forecast of $462 million and in between the company’s own forecast of between $450 million and $470 million.
And to make things worse, Redbox has announced that it will also be raising the prices of its DVD rentals – from $1.00 daily to $1.20. Fortunately its Blu-ray disc and video game rentals will remain at the same daily rates ($1.50 and $2.00 respectively). It’s uncertain how consumers will handle this slight increase in price but if we were to learn anything from the past – they’re never happy about it.
Redbox’s new fees for its DVD rentals will take effect next Monday, October 31st. What do you think of the price hike?
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