Redbox Raises Prices on DVD Rentals; Blames Higher Debit Card Fees
CHICAGO -- Coinstar will increase the price of DVD rentals at its Redbox kiosks from $1 a day to $1.20 a day, effective this Monday, Oct. 31.
Although the 20-percent price hike comes just months after Netflix, the online movie rental service, raised the hackle of its subscribers by increasing its prices by 60 percent, Coinstar is blaming higher operating costs, including higher debit card fees that went into effect Oct. 1.
The higher debit card fees are part of the Durbin swipe fee reform that capped the interchange fees banks charge to process debit card transactions, but raised fees substantially on small transactions.
Coinstar said this is the first time in eight years that Redbox has raised its daily DVD rental price.
Blu-ray discs and video games will stay at their current daily rental rates of $1.50 per day for Blu-ray and $2 a day for games.