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Do You Use Redbox? Get Ready for a Rate Increase...

"This marks the first price increase for a Redbox standard-definition DVD rental in eight years."

Netflix CEO Reed Hastings is likely to become an infamous case study.

His name is already being associated with lessons in how to kill a brand completely (if that's what you're actually trying to do).

The trouble began when Netflix implemented price hikes that resulted in an enormous number of subscribers abandoning the brand.

Couple that with Hasting's awkward blog apology and the announcement that they were going to separate services (only to change their minds later) and the end result has a downward spiral of their stocks into "bottoming-out" territory.

So you think competitors like Redbox would be taking notes, right?

Apparently not.

The rental kiosk company is raising the per-night price of a DVD rental from $1 to $1.20, Mashable reports.

Ironically enough, the announced price hikes will take effect on Halloween.

“This marks the first price increase for a Redbox standard-definition DVD rental in eight years,” said Paul Davis, CEO of Redbox parent firm Coinstar.

Blu-Ray and video game prices will remain the same. In its quarterly report, Redbox said its earnings had almost doubled with almost $1 billion in sales, the AP reports.

According to the Redbox CEO, higher operating costs prompted the price increase. Redbox is also reportedly planning its first national ad campaign, though the company says no announcements have been made on that front, writes Matt Cantor of Newser.

One last thing…
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