Redbox to boost DVD Rental Cost 20% Daily

Without doubt wishing a fee hike won't engender a Netflix-like revolt among its customers, Redbox stated Tuesday it will raise the cost of leasing standard Dvd disks by 20 % beginning Monday. The announcement came using a pr release that revealed strong earnings and revenue for Redbox parent Coinstar, but traders didn't appear happy. In after-hrs buying and selling, Coinstar shares were sinking a lot more than 12 % after shedding 2 percent to $52.95 throughout the standard session. Traders may be selling shares simply because they keep in mind that when Netflix elevated their prices it lost 800,000 customers and it is stock tanked. Coinstar Boss Paul Davis stated the brand new cost -- $1.20 each day for DVD rental fees, up from $1 formerly -- reflects costs connected with rising operating expenses, including government mandates caused through the so-known as Durbin Amendment which was designed to benefit customers through lower debit-card costs. Redbox stated prices for Blu-ray movies and game titles will stay at $1.50 and $2 daily, correspondingly. "This marks the very first cost increase for any Redbox standard definition DVD rental in eight years," Davis stated. "The modification is mainly because of the rise in operating expenses, such as the recent rise in debit card interchange costs consequently from the Durbin Amendment." Coinstar stated Thursday its profit within the third quarter jumped 90 % to $37 million on revenue that rose 23 percent to $466 million. On the per-share basis, Coinstar gained $1.18, way beyond the 88 cents Wall Street was expecting. Coinstar ended the quarter with 34,400 Redbox DVD kiosks and 19,500 gold coin-counting kiosks. Redbox paid for for $390 million in revenue within the quarter as the gold coin business paid for for $76 million. Related Subjects Netflix