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OAKBROOK TERRACE, Ill. -- One month after Netflix upped its prices, much to the dismay of movie fans everywhere, Redbox is putting its toes into the higher fee waters.
According to TMCnet.com, Coinstar has been testing higher-priced Redbox kiosks in Austin, Texas. Redbox initially charged $1 a day for DVD rentals, $1.50 a day for Blu-Ray disc rentals and $2 a day for video game rentals. The new pricing structure costs customers $1.20 a night for DVD rentals.
However, the company is reportedly mulling charging the higher fee for first night rental and then dropping back to the $1 for subsequent nights, the report said. The costs of renting Blu-Ray discs and video games would remain the same.
In a recent Forbes report, Merriman Capital analyst Eric Wold said the price increase could help defray costs for Redbox, which may be facing its own price increases from movie studios. The higher rental price is expected to reach full-scale rollout before 2012.
The move by Redbox comes on the heels of Netflix's decision to raise its package price for streaming content and DVD rentals from $9.99 to $16. This nearly 60-percent increase resulted in customers moving away from Netflix in favor of other movie rental options like Redbox and Blockbuster.