Redbox raises prices 20% to cover higher costs for DVDs and debit card transactions.

Last week, Redbox, the company owned by Coinstar (CSTR) that rents movies through big red kiosks, raised the price of DVD rentals from $1.00 to $1.20, a 20% increase. The company needs to offset higher costs for DVDs and process debit card transactions. Redbox tested out higher prices for a year in select cities and concluded that it was OK to roll out the increases nationwide. Given this testing, the company should not suffer the same backlash and outcry that Netflix (NFLX) suffered when it dramatically increases its movie rental prices.

For more details see “Redbox rental prices to rise.”

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