Redbox to Raise Prices in December
The news caused shares of parent company Outerwall to rise 9 percent
Shares of Outerwall jumped 9 percent on Monday after the company said that its Redbox movie kiosk rental service would raise its prices on Dec. 2.
Outerwall said the Redbox rental price for DVD's would increase by 30 cents a day to $1.50 while Blu-ray rentals would go up 50 cents to $2. Video games will now cost $3 a day, up from $2 previously.
The company said it is only the second time in 12 years that it has raised the price of DVD rentals and is the first time it will raise the price of Blu-rays and video games.
Still, the higher prices come amid a sales dip for Redbox, which posted $438 million in revenue in the third quarter, down 11 percent from the same period a year ago.
In that quarter, Redbox accounted for about 79 percent of Outerwall's total revenue, with most of the rest attributed to the firm's coin-counting business.
Shares of Outerwall rose $5.86 on Monday to $69.42 on almost three times normal volume.
Nov. 24, 5:15 p.m. A previous version of this story stated that Redbox would be raising prices in January. THR regrets the error.