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Redbox Raises Its Prices To $1.20 Per Day

samzenpus posted more than 2 years ago | from the those-who-don't-know-history dept.

Media 232

nixkuroi writes "Redbox, apparently not having noticed the backlash against Netflix, has decided to charge its customers 20% more per day. Though there will be a discounted grace period for the first day of rental until Nov. 30 2011, the full pricing increase will kick into effect on December 1."

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Why it doesn't matter (0)

2.7182 (819680) | more than 2 years ago | (#37863016)

Because: I've never known a single person who uses it.

Re:Why it doesn't matter (1)

Zibodiz (2160038) | more than 2 years ago | (#37863058)

You've got a good point.

Re:Why it doesn't matter (1)

QuasiSteve (2042606) | more than 2 years ago | (#37863156)

I've only been on vacation to the U.S. and every single time I entered a Fry's or exited one - in 3 different locations - the Red Box machines had people either idly browsing, actually getting a movie, or returning one.

I don't know any of them, though.. so you're absolutely right... it doesn't matter because I've never known a single person who uses it either.

More on-topic.. why $1.20? People have to dig for 2 dimes now? Wouldn't $1.25 be more convenient (my wallet was bulging with quarters.. it's insane how common that coin is) which would make it a lower psychological barrier to pay for, etc.? I'm sure they had professionals figure all that out.. just seems counter-intuitive to me.
( of course, increasing the pricing in the first place seems counter-intuitive )

Re:Why it doesn't matter (3, Informative)

eln (21727) | more than 2 years ago | (#37863170)

Redboxes do not operate on cash, you pay with a credit card. That way, if you never return the movie, they can just charge your card for the full price and be done with it.

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863256)

Full price = 25$ per movie. I've had my card used to rent two movies and whoever rented them never returned them, so I was charged 50$. Got my credit card company and redbox on the same line, and their decision was that I had to pay it. I will never use redbox.

Re:Why it doesn't matter (1)

Anonymous Coward | more than 2 years ago | (#37863478)

So you agreed to the service under the terms presented to you. You disappeared two movies that likely retail for near $20, that you were responsible for. They charged you like they were supposed to, $25 for each one you lost... likely working in $5 for the amortized aggravation of having to replace lost discs.

So you proceeded to harass them and your credit card company about it, they told you you're responsible for what you agreed to be responsible for, and you're pissed at redbox?

I must be missing an important detail here.

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863518)

Probably the part about not being the one that rented them, nor agreeing to any terms.
Not that it explained how this could have happened.

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863570)

The important detail you're missing is your reading comprehension.
" I've had my card used[fraudulently by someone else] to rent two movies and whoever rented them never returned them"

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863618)

I call BS. I imagine you're leaving out the details where you allowed your card to be used, intentionally or not. If I'm wrong, your beef is with your credit card company.

Re:Why it doesn't matter (1)

firex726 (1188453) | more than 2 years ago | (#37863802)

Needs more details...

Was the card stolen? Was he aware it was going to be used for such a purpose?
Its not hard to build a duplicator and when you hand your card off to a waiter he could easily swipe it on the duplicator and clone it onto a blank.

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863604)

Full price = 25$ per movie. I've had my card used to rent two movies and whoever rented them never returned them, so I was charged 50$. Got my credit card company and redbox on the same line, and their decision was that I had to pay it. I will never use redbox.

It's Redbox's fault you lost your credit card and didn't report it missing before it was used by someone else? If you want someone to blame for that little fuckup, you can start by pointing a thumb instead of a finger.

Re:Why it doesn't matter (1, Insightful)

hawguy (1600213) | more than 2 years ago | (#37863926)

Full price = 25$ per movie. I've had my card used to rent two movies and whoever rented them never returned them, so I was charged 50$. Got my credit card company and redbox on the same line, and their decision was that I had to pay it. I will never use redbox.

It's Redbox's fault you lost your credit card and didn't report it missing before it was used by someone else? If you want someone to blame for that little fuckup, you can start by pointing a thumb instead of a finger.

If his card was indeed lost or stolen and someone used it fraudulently, then yes, it is Redbox's fault for accepting it without verification. I understand that their business model doesn't allow for someone to personally check each card, but it's not my fault if their business model allows for easy fraud.

Though I suspect that's not what happened in this case, or the CC company would have just done a chargeback against Redbox. The law limits your liability to $50 for a lost/stolen card, but I've never had a card company enforce the $50 - and it's happened to me 3 times. (once because I lost my card, twice because an online merchant had a data breach)

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863730)

Don't blame redbox. Blame your shit credit card company, who won't even stand behind you. Where's the signature to prove you used the card? Oh that's right...there is no signature, and no proof it was you. I hope you dumped that credit card company instantly, while you were still on the phone with them.

Re:Why it doesn't matter (1)

Dahamma (304068) | more than 2 years ago | (#37863764)

If you lent your card to someone to rent them, it's your own fault and you should pay. If someone stole or cloned your card, then it's fraud and so it's your credit card company that is wrong for not reversing the charge. Either way, it wasn't redbox's fault.

Re:Why it doesn't matter (1)

demonlapin (527802) | more than 2 years ago | (#37863904)

You're liable for $50 on nearly every credit card agreement, even if you report it stolen.

Re:Why it doesn't matter (1)

tweak13 (1171627) | more than 2 years ago | (#37863936)

There was a time when this was true, but for at least the last 5-10 years $0 liability agreements have become much more common. None of my cards require me to pay anything for fraud.

Re:Why it doesn't matter (1)

demonlapin (527802) | more than 2 years ago | (#37863962)

A surprising number of people haven't changed cards in the last 5-10 years. I'm still using a nearly 20-year-old card. I have, however, recently realized that I was leaving all sorts of benefits on the table and have started mile-collecting.

Re:Why it doesn't matter (1)

nedlohs (1335013) | more than 2 years ago | (#37864026)

Chargeback. Are you an idiot or something?

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863588)

"Full price" in this case is actually $25. I've actually bought two DVDs from them that way. They just charge you the daily rental fee until you hit that mark, and then they just close the thing out. It's all right there in their website, actually.

An entirely refreshing change from the tender mercies of certain other organizations.

Re:Why it doesn't matter (1)

QuasiSteve (2042606) | more than 2 years ago | (#37863984)

Redboxes do not operate on cash, you pay with a credit card.

Well go figure.. that explains that, then - thanks :)

( No, I never observed one of those machines in detail, nor bothered to check wikipedia - I figured it was some membership code thing you had to enter and pay by cash or out of an account linked to whatever. )

Re:Why it doesn't matter (3, Informative)

greghodg (1453715) | more than 2 years ago | (#37863182)

No. They don't take coins, so it doesn't really matter what they charge. You have to pay with a card. Incidentally, we've found they're great on multi-day road trips with the kids, you can pick up a movie at a RedBox when you stop for lunch, the kids can watch it, and you can return it the next day 800 miles from where you rented it.

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863208)

I've only been on vacation to the U.S. and every single time I entered a Fry's or exited one - in 3 different locations - the Red Box machines had people either idly browsing, actually getting a movie, or returning one.

I don't know any of them, though.. so you're absolutely right... it doesn't matter because I've never known a single person who uses it either.

More on-topic.. why $1.20? People have to dig for 2 dimes now? Wouldn't $1.25 be more convenient (my wallet was bulging with quarters.. it's insane how common that coin is) which would make it a lower psychological barrier to pay for, etc.? I'm sure they had professionals figure all that out.. just seems counter-intuitive to me.
( of course, increasing the pricing in the first place seems counter-intuitive )

Actually to get a movie with Redbox, you have to use a Credit Card. You can't get using cash. According to their site, that's part of the reason for the increase, is increasing Debit Fee charges.

Re:Why it doesn't matter (1)

Dahamma (304068) | more than 2 years ago | (#37863846)

According to their site, that's part of the reason for the increase, is increasing Debit Fee charges.

Yeah, the new "debit card fee" changes intended to decrease debit card costs to retailers in fact results in large increase in debit costs for small transactions.

Instead of $0.04 + 1.55% per transaction max, it's $0.21 + %0.05 per transaction... that means for anything less than about $12, they get *more* money now. And of course the banks know that the trend of using debit cards for small/micro transactions instead of cash means their revenues are just going to go up.

Your corrupt and/or incompetent Congresspeople hard at work...

Re:Why it doesn't matter (1)

nbetcher (973062) | more than 2 years ago | (#37863258)

$1.20 is better than $1.25 since it is a lower price and considering the RedBox doesn't take cash, it doesn't matter much where you round it to.

Re:Why it doesn't matter (1)

Culture20 (968837) | more than 2 years ago | (#37863644)

$1.20 is better than $1.25 since it is a lower price and considering the RedBox doesn't take cash, it doesn't matter much where you round it to.

Well, it does unless they want Richard Pryor driving to their office in a Ferrari. That would make for an interesting Halloween I suppose...

Re:Why it doesn't matter (1)

flibbidyfloo (451053) | more than 2 years ago | (#37863278)

AFAIK redbox doesn't take cash. You have to use a credit or debit card so they can charge you automatically if you don't return the DVD.

Re:Why it doesn't matter (1)

eln (21727) | more than 2 years ago | (#37863158)

Redbox is useful if you want to see recently released popular movies. Coincidentally, this is exactly the sort of movie that Netflix streaming never has.

Re:Why it doesn't matter (1)

Charliemopps (1157495) | more than 2 years ago | (#37863234)

And the piratebay is useful if you want to see movies that wont be released for another 3 months and would prefer not to sit through previews. The qualities usually better as well.

Re:Why it doesn't matter (1)

symbolset (646467) | more than 2 years ago | (#37863274)

Yeah, it goes great with Netflix streaming, and if you don't watch DVD's very often it's a better deal than the Netflix disc-by-mail subscription. If you have a lot of Redboxes in your local area, you can go to their website and browse a bigger selection or search - and reserve the disc you want.

Re:Why it doesn't matter (1)

bl968 (190792) | more than 2 years ago | (#37863406)

Because they won't license them to netflix until they have been out so many months. IMHO this should be grounds for a copyright abuse complaint.

Re:Why it doesn't matter (1)

kyrio (1091003) | more than 2 years ago | (#37863798)

You don't really know what copyright is, do you?

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863162)

Are you kidding? There are sometimes lines for the Redboxes in the residential areas around here. For the folks like me who only watch 1 or 2 movies a month (if that?), it's a great bargain. The extra 20 cents to rent a movie is a non-barrier.

Re:Why it doesn't matter (1)

chill (34294) | more than 2 years ago | (#37863164)

Considering RedBox has an estimated 35% of the DVD Rental market, which just passed NetFlix at 33% -- you're one of the few. RedBox's share has been increasing, while NetFlix's has been decreasing.

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863310)

Douchebags in the suburbs who can afford the 4 DVD plan from Netflix wouldn't know any redboxers but low income areas are all over these things. Reserving Blu rays from an iPhone app at one of the many kiosks means you don't even have to chance it anymore and waste time in these lines. A twenty cent increase != a twenty dollar increase.

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863318)

I don't think he's "one of the few." Redbox has 35% of the DVD market, but how big is that market? (I'd bet small and shrinking.) I'm guessing that Redbox use is highly regional. I do see people occasionally using the Redbox at the local grocer, but not often and no one I know. In other areas there seem to be lots of users (see a poster above who mentioned 3 crowded machines in one location).

I also think that maybe he does know some Redbox users, he just doesn't know it. People don't seem to talk about Redbox like they do/did about Netflix. Maybe because even though it's a good idea, it's not all that different than driving to Blockbuster (remember that?) and renting the latest movie there.

I prefer Vudu for new releases. More expensive but more convenient and I don't have to have any idea I even want to watch a movie until the second I decide to watch a movie.

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863322)

Considering RedBox has an estimated 35% of the DVD Rental market, which just passed NetFlix at 33% -- you're one of the few. RedBox's share has been increasing, while NetFlix's has been decreasing.

Key word is DVD. Dead format being kept alive by the people of walmart.

Re:Why it doesn't matter (1)

Jarik C-Bol (894741) | more than 2 years ago | (#37863884)

and 1.20$ still being less than half what the local 'brick and mortar' video rental place charges per day, I see myself still using redbox to watch a few new releases. (and grab traveling movies)

Re:Why it doesn't matter (1)

TheDormouse (614641) | more than 2 years ago | (#37863300)

I don't think I know anyone who uses anything other than Redbox or Netflix to pay to rent new-release movies on DVD. I know lots of people who left Netflix's DVD mail service a couple years ago when Redbox came to town. The storefront of practically every Walgreens, CVS, grocery, and convenience store has one now.

You must live someplace with few Redbox machines.

Re:Why it doesn't matter (0)

Anonymous Coward | more than 2 years ago | (#37863396)

I used it some.

I've never used Netflix. I don't like filling out forms or having another monthly bill to pay. It's much easier just to rent a video from the gas station across the street for $1.

Re:Why it doesn't matter (0)

stephanruby (542433) | more than 2 years ago | (#37863408)

The entire business model of RedBox is based on giving away free promo codes and then charging fraudulent late fees one or two months later. So if you (or your friends) haven't used one of their free promo codes, just consider yourself and your friends lucky.

Re:Why it doesn't matter (4, Insightful)

PNutts (199112) | more than 2 years ago | (#37863626)

The entire business model of RedBox is based on giving away free promo codes and then charging fraudulent late fees one or two months later. So if you (or your friends) haven't used one of their free promo codes, just consider yourself and your friends lucky.

No.

Re:Why it doesn't matter (1)

Jarik C-Bol (894741) | more than 2 years ago | (#37863894)

what? late fees? you use the service, and agree to 1$ per day that the movie is not returned. You fail to return it, you get a 25$ dollar DVD without the case.

Re:Why it doesn't matter (1)

westlake (615356) | more than 2 years ago | (#37863428)

Why it doesn't matter?

Because: I've never known a single person who uses it.

This deserves preservation in amber as the ultimate in geek memes.

Re:Why it doesn't matter (1)

SomePgmr (2021234) | more than 2 years ago | (#37863516)

Well obviously you don't know me, but I've tried it out. I think I was interested in using a curious vending machine more than the movies themselves.

It's pretty slick. I have no interest in returning to the model where I have to shuffle physical media around town in a timely manner or pay late fees... but if you want something newer than what you'll find on Netflix, and you want it now, they're a neat option.

Re:Why it doesn't matter (1)

rabun_bike (905430) | more than 2 years ago | (#37863540)

I am one who uses Redbox but I don't know you so in your mind I don't count. My Redbox is literally a short walk from my house. I can rent from one kiosk and return to any other. I also have an antenna on my roof and don't have cable TV or satellite. Instead I have a TV hooked to an extremely (60+ Mbps) fast internet connection subsidized by my employer and have been streaming to the TV with HDMI cabling from a computer for several years (before Boxy Box was hip). I started renting movies from Amazon Unbox years ago but they are simply too expensive and after getting cut off by the 24 hr viewing limit from Amazon video streaming (literally skipping sections of the movie to beat the clock) I have given up on Amazon unless I am really lazy or can't find the movie on Redbox. Netflix was the most promising disruptive technology but until they work out their issues I am sticking to Redbox and direct streaming from NBC, CBS, FOX, Hulu, etc. So, call me nuts but compared to my co-workers I save on the order of about $200/month by kicking pay TV to the curb and using Redbox to rent DVDs. I have a free, no monthly fee, DVR for recording from my free HD TV signal as well at 480 dpi (low res). That was an extremely difficult thing to find by the way. Tivo was the only thing at the time that would do above 480. I live Tivo but I am not going to pay for a monthly subscription. And my cheapo DVR has a 1TB SAS drive in it.

News and sports (1)

tepples (727027) | more than 2 years ago | (#37863796)

I have given up on Amazon unless I am really lazy or can't find the movie on Redbox.

Such as any movie first released more than about 18 months ago.

compared to my co-workers I save on the order of about $200/month by kicking pay TV to the curb

What do you do if someone wants to watch live political commentary (e.g. the morning or prime-time lineup of MSNBC, CNN, or Fox News) or live sports? News and sports are the things keeping households in my extended family watching pay TV.

Re:News and sports (1)

artor3 (1344997) | more than 2 years ago | (#37863920)

You can get a lot of live sports direct from the league (e.g. MLB.tv). The only major sport that requires cable/satellite is the NFL, which has few enough games that you can watch it at someone else's place.

And honestly, you'll be happier and better informed if you drop the cable news. Fox is propaganda and the other networks aren't much better.

Re:News and sports (1)

tepples (727027) | more than 2 years ago | (#37864030)

ou can get a lot of live sports direct from the league (e.g. MLB.tv). The only major sport that requires cable/satellite is the NFL, which has few enough games that you can watch it at someone else's place.

My aunt's husband likes NFL and NHL, and his house ends up being the "someone else's place" that others visit.

And honestly, you'll be happier and better informed if you drop the cable news. Fox is propaganda and the other networks aren't much better.

Another relative hates Fox News with a passion. She wants political commentary that she can listen to while getting ready for work in the morning, and she has hooked the cable box up to an FM transmitter so that she can blare MSNBC's Morning Joe Brewed by Starbucks over a radio in every room, even in the bathroom while she takes a shower.

Re:Why it doesn't matter (1)

antdude (79039) | more than 2 years ago | (#37863582)

I know a lot of people who used it in my area. Blockbuster, Hollywood Videos, etc. are dead over here. :(

Re:Why it doesn't matter (1)

PNutts (199112) | more than 2 years ago | (#37863654)

I don't know anyone who uses it except me. I became a stream-only Netflix subscriber when they split their business. I would have to rent about 6 Redbox movies a month to meet Netflix's fee (IIRC). I don't rent 6 movies a month so I'm good. Also our library has a good selection of DVDs.

Oh yay. (1)

Zibodiz (2160038) | more than 2 years ago | (#37863020)

Maybe Netflix payed them to send people back into the fold?

Yeah, because it's such a ripoff! (0)

Anonymous Coward | more than 2 years ago | (#37863024)

20% of 1 dollar. Or 20 cents. Less than a quarter.

If anybody expresses outrage over that, I'm going to punch them then make them buy me a tank of gas.

Yay! More backlash! (0)

Anonymous Coward | more than 2 years ago | (#37863028)

I like backlash. It's good for making investments.

Great, TFS is a troll (4, Informative)

bill_mcgonigle (4333) | more than 2 years ago | (#37863032)

The price of everything else is up 20% in the past few years (other than salaries), so why not Redbox? Netflix raised their base price 60%, and fumbled with Qwickster - different story.

It would be great if the value of the dollar were stable, but it's not, so prices rise. Thanks, Helicopter Ben.

Re:Great, TFS is a troll (1)

frosty_tsm (933163) | more than 2 years ago | (#37863342)

The price of everything else is up 20% in the past few years (other than salaries), so why not Redbox? Netflix raised their base price 60%, and fumbled with Qwickster - different story.

It would be great if the value of the dollar were stable, but it's not, so prices rise. Thanks, Helicopter Ben.

Agreed. This is an example of a price being raised a small amount that won't affect the overall demand for the product (and yet isn't on a critical product or service that puts strain on a family's budget).

Well played, Redbox, well played.

Re:Great, TFS is a troll (1)

Daniel Dvorkin (106857) | more than 2 years ago | (#37863788)

This is an example of a price being raised a small amount that won't affect the overall demand for the product

I'm not sure about that. People like nice round numbers. $1.20 is kind of a weird price point.

Re:Great, TFS is a troll (0)

Anonymous Coward | more than 2 years ago | (#37863918)

"People like nice round numbers. $1.20 is kind of a weird price point"

In that case, they should have made it $1.28.

Re:Great, TFS is a troll (1)

Daniel Dvorkin (106857) | more than 2 years ago | (#37863998)

[snort]

Re:Great, TFS is a troll (0)

Anonymous Coward | more than 2 years ago | (#37864016)

And yet... those people that like nice round numbers buy 0.99 and 1.20 drinks, so it isn't that weird a price point.

Re:Great, TFS is a troll (1)

fermion (181285) | more than 2 years ago | (#37863700)

Netflix raised prices, but also gave customers an out if they were extremely sensitive to prices. One could go just streaming or just delivery and pay less. Netflix has understood that movie rental is extremely sensitive to pricing, and has done a ok job maintaining value.

Redbox OTOH, now that it has banished most of the Blockbuster and all the Hollywood video stores, seems to be taking advantage of the situation. There is no acknowledgement that some customers might have trouble with the extra cents and have to cut back. A more reasonable way to do this would be a dolar for the first day and then $1.20 for each additional day, or even a dollar if you get it back within 10 hours. As it is, it is just charging more money because the market will bear, which is fine, but certainly much more of a screw up than netflix. I already though $1 a day was too much and seldom use Redbox. Now I will even be more hesistant.

Re:Great, TFS is a troll (1)

bill_mcgonigle (4333) | more than 2 years ago | (#37863746)

There is no acknowledgement that some customers might have trouble with the extra cents and have to cut back.

That's implicit with every price rise, especially when costs are rising faster than salaries (yay, depressions).

Redbox probably will do fewer rentals (though I guess less than 20%) but they can't operate at a loss either or there's no Redbox.

Re:Great, TFS is a troll (1)

Buelldozer (713671) | more than 2 years ago | (#37863922)

Oh in the inanity in your post.

5 years it would have cost you $5 which was more in both absolute AND real dollars.

Now it's a $1, going to $1.20, and you feel it's too much.

The mind, it boggles.

The Pirate Bay, $0 a Day! (0)

Anonymous Coward | more than 2 years ago | (#37863052)

EOM

I fail to be outraged (5, Insightful)

JeremyMorgan (1428075) | more than 2 years ago | (#37863064)

Just like with Netflix, I understand there is a cost of doing business. The costs for these companies to pay for content is rising, and the means to deliver it is getting more expensive. I am willing to pay for it until it reaches a price I feel is too high, then I'm free to cancel. Why get angry?

It's a luxury item, if you can't afford it don't do it. That simple.

Nope. (1)

MrEricSir (398214) | more than 2 years ago | (#37863276)

That's not how supply and demand works. Prices are set to what will make the most money, NOT what will cover the costs.

Re:Nope. (0)

Anonymous Coward | more than 2 years ago | (#37863366)

Nope. Prices are set to what the market will bear. That is it. See HP Touchpad firesale.

Re:Nope. (1)

Fned (43219) | more than 2 years ago | (#37863506)

Or much higher than the market will bear. See movies, music.

Re:Nope. (1)

xstonedogx (814876) | more than 2 years ago | (#37863382)

Further, I don't see the costs for content rising given that they are a DVD rental business. There might be value in a partnership with the studios, but unlike Netflix and other streaming places, they don't need the studios to play ball so if costs rise from content issues they can tell the studios to take a hike and just keep buying and renting the DVDs.

That's not to say the GP's main point isn't correct. Don't like the price hike, spend your dollars elsewhere (or don't).

Re:Nope. (0)

Anonymous Coward | more than 2 years ago | (#37863450)

In this case, the rising cost is the cost of restocking the RedBox machines with new disks every week. That's payroll, fuel, vehicle maintenance, etc.

Re:Nope. (1)

xstonedogx (814876) | more than 2 years ago | (#37863502)

I was referring specifically to "...costs for these companies to pay for content is rising..."

Re:Nope. (1)

grumling (94709) | more than 2 years ago | (#37863660)

No, they can't just buy DVDs and rent them out. Back in the VHS days that was possible, but now there's a bunch of copyright laws that won't allow it. Depending on how the laws are interpreted, public libraries could be in violation.

Re:Nope. (0)

Anonymous Coward | more than 2 years ago | (#37863754)

Care to cite these laws that have been passed in the last 20 years that changed how rentals are done?

Re:Nope. (1)

cpt kangarooski (3773) | more than 2 years ago | (#37863784)

No, first sale applies just fine to DVDs. I suppose there is a colorable argument that it wouldn't, but it's never been tried and might well fail.

The reason that they do deals with studios however is 1) so that they can buy at a discount, and 2) so that they can buy discs early via a distributor so as to get them all loaded in machines in time for the day they hit the public market, as opposed to having to scramble to find a retailer that has umpty million discs, buy them, bring them back to a warehouse, open them, keep the disc, attach inventory control labels, put them in new cases, ship them to local distribution points, truck them to the machines, and add them to the stock.

Of course, with a 4 week window, it ought to be doable, which suggests that the issue is wholesale v. retail prices and availability at a retailer that's willing to jeopardize it's own relationship with the studios and it's own sales to help a rental operation.

Re:Nope. (1)

BadERA (107121) | more than 2 years ago | (#37863862)

Actually First Sale doctrine is still in effect and would allow retail purchasing; some entities have refused to sell via retail channels to redbox in the past, but there are of course numerous ways to sidestep that.

Disclaimer, I'm currently on a software contract at redbox. I'm an uninformed tech monkey who has little information and no decision making power when it comes to business decisions. These statements are my own opinions and do not reflect past, current or intended behaviors on the part of redbox, its owner Coinstar, or any employees, contractors or vendors of either entity.

Re:I fail to be outraged (0)

Anonymous Coward | more than 2 years ago | (#37863484)

What luxury? I pay an anonymous proxy and very large private streaming service so I can download what I want to watch when I want to watch it. If fucking hollyweird can't fucking let me watch their fucking ads and watch what I want when I want then they can die.

They both support Linux.

Re:I fail to be outraged (1)

Joe Tie. (567096) | more than 2 years ago | (#37863584)

Why get angry? If you're seeing anger it's just you reading emotion into it. People raise prices, people comment on that fact. You seem to be aiming for a world where nobody is ever allowed to voice opinion on anything or comment on their actions in relation to what's going on in the world.

Re:I fail to be outraged (1)

hjf (703092) | more than 2 years ago | (#37863848)

You've never been to the netflix blog, haven't you?

You can see some pretty angry comments there.

Re:I fail to be outraged (1)

demonlapin (527802) | more than 2 years ago | (#37863942)

The problem with Netflix was that they tried to spin it as doing the customer a favor. If the email they sent me had said "Sorry Mr. Demonlapin, we have to raise prices because streaming bandwidth and streaming rights are costing us a lot of money" I'd have been perfectly satisfied - not happy, of course, I don't like a rise in rates, but satisfied. Instead they tried to tell me how they were going to save me $1 a month by taking away either streaming or the DVDs.

Orrrrrrr (1)

hipp5 (1635263) | more than 2 years ago | (#37863098)

Redbox realizes that there are few other options and since Netflix has raised prices they can get away with it too because there is nowhere else for customers to go.

Unlike netflix (1)

Osgeld (1900440) | more than 2 years ago | (#37863114)

They didn't drastic increase their price and did not insult their customers by assuming that they are fucking stupid at the same time.

Re:Unlike netflix (0)

Anonymous Coward | more than 2 years ago | (#37863552)

Unlike Netflix, it's still more expensive to rent out movies by the day and they still don't have 0.01% of the selection. Thank you. Have a nice day.

amazon rental prices (1)

haberb (793047) | more than 2 years ago | (#37863116)

The closer to amazon rental prices, the less I'll be going to redbox.

Re:amazon rental prices (0)

Anonymous Coward | more than 2 years ago | (#37863174)

Don't forget to factor in gas prices - that may kick you over. I'm considering Amazon rentals over NetFlix DVDs, at $8/month plus taxes and fees for a single DVD and I can get roughly 2 DVDs in a week if I watch and return that's over $1/DVD by mail. A far cry from $4 a pop at Amazon but catching up.

Re:amazon rental prices (0)

Anonymous Coward | more than 2 years ago | (#37863558)

If you use Redbox, chances are you're picking the movies up on the way home from work or something, and so you're hardly using any more gas than you would have otherwise (assuming the nearest one isn't several miles out of your way). Factoring gas into Redbox usage is a bit like factoring your ISP cost into Amazon/Netflix.

They Learned (0)

Anonymous Coward | more than 2 years ago | (#37863136)

What do you mean? They obviously learned that a significant number of customers will take a 60% price increase, so 20% is nothing!

Don't use inflation (3, Insightful)

Mean Variance (913229) | more than 2 years ago | (#37863194)

I don't see this as an inflation response, nor is it a fair comparison to Netflix. Redbox is a la carte. You subscribe to nothing. Use it a little, a lot, or not at all.

As they built out their system $1 was a simple price point, easy to advertise and a good entry point. Now they have a business model and usage metrics. $1.20 is a price point that they probably think is sustainable and will generate revenue and profit.

I like Redbox and probably use it 3-5 times a month. It's easy to grab something for the family and just as easy to return to about 10 different boxes within 2 miles of my home and shopping areas.

As you approach market saturation (1)

Revek (133289) | more than 2 years ago | (#37863214)

There is nothing left to do but raise your price. All hail our lord increased profits.

Re:As you approach market saturation (1)

SteveFoerster (136027) | more than 2 years ago | (#37864014)

What do you expect them to do, not raise them just so people who aren't their shareholders can keep more money in their pockets? They're not exactly selling anti-retrovirals, if you don't think $1.20 is a good deal, don't rent a DVD from them, no problem.

It has to be FREE! (0)

Un pobre guey (593801) | more than 2 years ago | (#37863264)

I want everything to be free! Information wants to be free! Music wants to be free! Movies want to be free! Why do these bastards charge us money for Art! Don't they get it? It wants to be free! Since it's digital and can be distributed for nearly zero marginal cost, it should always be free! OK, so you actually rent a physical disk at the supermarket. Big fucking deal! If not free, they should at least never ever raise the price!

Goddamn Luddites! Stuck in the 20th century. Fucking old economy... [mumble mumble, gripe gripe]

Full disclosure: I kept my Netflix account intact in spite of their changes. It's still a convenient bargain with a huge library compared to other sources.

Re:It has to be FREE! (1)

TimHunter (174406) | more than 2 years ago | (#37863326)

Agreed. I'd rent from Redbox if they charged a fair price. Say $0.10 a movie, but only if I get to watch it first and then decide if it was good enough to pay for. All the movies I torrent suck.

Besides, if I had to pay for a movie I wouldn't so it's not like I'm stealing anything. I mean, the only movies I torrent are movies based on comic book characters, or movies made by indie filmmakers.

The movie distributors are ripping off the artist anyway. I'd pay $1.20 for a movie but only if I could pay it directly into the hands of the writer and actors and director and people who really make the movie.

Re:It has to be FREE! (1)

audiomagi (941840) | more than 2 years ago | (#37863464)

All the movies I torrent suck.....I mean, the only movies I torrent are movies based on comic book characters, or movies made by indie filmmakers.

Well, there's your problem!

Re:It has to be FREE! (0)

Anonymous Coward | more than 2 years ago | (#37863664)

stop stealing my bandwidth with your crappy movie torrents, loser.

Re:It has to be FREE! (0)

Anonymous Coward | more than 2 years ago | (#37863556)

Information wants to be anthropomorphised!

What will the market bear (5, Informative)

Doofus (43075) | more than 2 years ago | (#37863294)

Redbox pricing change and Netflix erstwhile split are not really in the same league.

Netflix customers would have had to pay two membership fees monthly with the new Qwikster arrangement, a 60% increase over the prior setup. The key here is that the "service" that customers were paying for and to which they were accustomed, was being substantially modified - into two new services.

Redbox is simply raising their price, by a marginal $0.20 per rental. For heavy renters, this may be significant over the course of a month. But for most normal renters, this increase is tolerable.

Even at one rental per day, the difference over a month is only $6. If this is too much for you, perhaps you shouldn't be renting 30 DVDs a month.

Re:What will the market bear (0)

Anonymous Coward | more than 2 years ago | (#37863462)

Netflix increased prices 60% before they announced Qwikster. I assume that's the reference and not the second backlash when Qwikster was announced.

Cost of doing business (1)

Anonymous Coward | more than 2 years ago | (#37863402)

Yeah, its 20% price increase if you want to cause some outrage among readers. Or if you are more sensible, its just $0.20 cents extra. I am not outraged at this, and in one of their recent surveys I said I wouldn't mind paying a slight increase if it meant more/better movies available to rent. I also see it as a necessity. As a regular Redbox renter, I can't imagine how they stay in business with all the piracy going on and theft. Constantly I rent a movie where someone has returned a fake dvd back just by swapping the barcode label. There have been times as well, where they system says I never returned a movie and would charge me $25 for keeping it past 25 days. A quick call, they see 90% of the time I return my movies on time, and they credit the loss as a system error.

Posted as A/C as I don't have an account yet.

Whew. I thought you said RedTube (5, Funny)

Anonymous Coward | more than 2 years ago | (#37863492)

Panic over
Nothing to see, here

Blu-ray, Game Prices the same (0)

Anonymous Coward | more than 2 years ago | (#37863596)

From TFA:

"Are you raising prices on Blu-ray Discs and Video Games, too?
No, Blu-ray Discs and Video Games will stay at their current daily rates ($1.50 a day for Blu-ray Discs and $2 a day for games)."

I still rent from Blockbuster... (0)

mynis01 (2448882) | more than 2 years ago | (#37863792)

or I actually buy movies, in order to support artists who's income depends on it. Even better, you can go see something in the theater! I don't know what it's like in other areas, but here in NC there's plenty of theaters that show movies a little bit later than others and charge between $1.50 and $3 per person per showing. I'd rather rent new movies than stream old ones. Redbox never has anything I haven't all ready watched. Sometimes I stream random B horror movies and foreign ones on Netflix, but even then the selection is pretty limited.

My local library offers dvd's for.. (0)

Anonymous Coward | more than 2 years ago | (#37863840)

My local library (Baltimore County Public Library) offers new movies for $1 a night. TV series, classic films, foreign films are free.

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