Redbox Has Learned From Netflix

Not too long ago I signed up to receive text messages from Red Box.

I had never used Red Box but there were two things to consider. For starters they promised to send codes for free rentals and I can’t think of a better price than free.

The other consideration was I have unlimited text messages so, why not? Let me put that network to use since they want my money every month.

Anyway, after receiving three codes that I forgot to redeem I finally got around to using one. And I must say Red Box is pretty cool. Especially for free. Of course the free code didn’t apply to Blu Ray. But my player upgrades the standard dvd to perfection.

I made sure to return it before 9 pm the next day so I would not be charged. I loved that you can return the rental to any Red Box location.

It’s no Netflix but hey, it’s a viable option while you’re out at the supermarket anyway.

In case you haven’t heard, Netflix is going through some things right now thanks to public outcry regarding their price increase, and previously proposed plan to split the streaming from the dvd by mail service. They’ve since deserted the latter.

The result has been devastating, although I continue to stay loyal to my original thoughts on Netflix. Many people have not.

So that brings me to my point. I received an email from Red Box today, and here’s that email:

New Daily DVD Rental Price

Redbox is making an announcement about its prices today, and we want to make sure that you hear it from us first.

Starting on Monday, October 31, the daily rental charge for DVDs will change to $1.20 a day.* The price change is due to rising operating expenses, including new increases in debit card fees. Daily rental charges for Blu-ray™ Discs and video games won’t change.** Additional-day charges for DVDs rented before 10/31 won’t be affected, either.

In order to make the transition easier, Redbox will discount the first day of all online DVD rentals to $1.00 from 10/31 through 11/30. Additional rental days will be $1.20.***

If you have any questions, please visit redbox.com/pricechange. There, we’ve provided additional information.

This marks our first price change in more than eight years as we work hard to keep prices low for our customers.

Thank you,

Redbox

Talk about damage control.

When I first read it I wondered why they would attempt to offset “rising operating expenses” by NOT raising the price of Blu Ray Movies or Games. Are the regular DVD’s more expensive to maintain?

They raised the price less than a quarter per rental, but they managed to apologize twice without saying their sorry.

First apology:

In order to make the transition easier, Redbox will discount the first day of all online DVD rentals to $1.00 from 10/31 through 11/30

Second Apology:

This marks our first price change in more than eight years as we work hard to keep prices low for our customers.

It seems they tried everything they can to soften to “blow”. I put quotation marks around blow because it’s only a two dime increase. Then again Netflix increase was only $6 and they were beheaded.

Will having an entire month at the old $1 rate make the transition easier?

Since they haven’t raised prices in eight years will that mean people won’t be mad?

Maybe, Maybe Not.

But make no mistake about it. They wrote that entire email with a Netflix jacket sitting right by their computer as a reminder.

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