Redbox apparently didn’t learn from Netflix’s mistake. After Netflix saw its stock plummet after raising prices, Redbox was seen as a bigger winner. Instead of taking advantage, Redbox has decided to go down the same road. On Thursday, Redbox announced they were raising their DVD prices.
The DVD price increase is from $1 to $1.20 and will begin on Oct. 31. While that is a small price bump, it is already being noticed. Redbox’s stock has fallen already more than 10%. Ironically, former Netflix customers who turned to Redbox after the price increase may now jump back to Netflix.
Said CEO Paul Davis: “This marks the first price increase for a Redbox standard-definition DVD rental in eight years.”
But Mr. Davis, the timing is horrible. And besides, a $1.20 DVD rental doesn’t sound nearly as enticing as $1 DVD rentals.
So … what is Blockbuster up to these days?