Redbox Tests Price Increases in Some Markets

**Waqas** · August 17, 2011

Update: Redbox has just contacted us with this update, “As weâ€™ve done in the past, Redbox is currently testing alternative daily rental prices in a few local markets. We have not made plans to expand the test or to permanently change our pricing.”

Movie rental kiosk company Redbox has raised DVD rental rates in Austin, Texas and Portland, Oregon by as much as 20% per night.

In these markets, DVD movie rentals are now $1.15 or $1.20 per night, versus the standard $1 per night in most regions. This increase comes a month after Netflix separated its streaming and rental subscriptions, raising prices by 60% in the process.

As Variety notes, Redbox has already been testing price increases in other markets, including Miami, San Diego and Modesto, California. Still, increasing prices in more areas seems to imply that these sorts of moves will soon be permanent. Updated to add: Redbox reached out and told us that they have no plans to make the price increases permanent.

Blu-ray and video games prices have not changed, though its unclear if those disc types will be immune from future price increases. Even at $1.20 per night, Redbox is still significantly cheaper than video-on-demand, iTunes rentals or Blockbuster.

A January study from the NPD Group estimated that Redbox accounted for 31% of the movie rental market.

Redbox is continuing to grow, with revenue up 34% in its most recent quarter. The company has also expanded its video game rental business, offering PlayStation 3, Xbox 360 and Nintendo Wii games at 27,000 out of its 33,000 rental kiosks.

In spite of testing price hikes in some markets, Redbox is still offering customers discounts via Foursquare checkins until August 24.

Will an extra $0.20 put you off Redbox, or is it still cheap enough to keep using? Let us know in the comments.

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