Redbox Tests 20 Percent Price Hike on DVD Rentals: Analyst

“A-dollar-twenty-a-day” may not have the same ring as Redbox’s current standard DVD rental rate. But few consumers nationwide would balk at the price hike that the Coinstar-owned company is now testing in its Austin, Texas-area kiosks, according to one analyst. In a research note, Merriman Capital analyst Eric Wold said that the $1.20 rental rate could help Redbox offset higher licensing fees it pays to studios (via Forbes). Wold estimates that the higher rate, if rolled out nationwide, could add $203 million to Redbox’s annual earnings; but the earnings boost would be less if customers rented discs for fewer days, or if customers rented fewer discs, in response to the price hike. Rates in Austin-area Redbox kiosks for Blu-ray and video game rentals remained unchanged at $1.50 a day and $2 a day, respectively, Wold reported.