After Netflix's July 12 price increase announcement, movie-goers have started examining their usage of the service—and shopping around. Will the economical Redbox system finally trump the mail-order service?
About the Price Increase
An email sent to customers explained the mail-order DVD service and live streaming option will become two separate services on September 1, with each costing $7.99 per month. Previously, customers could snag one DVD at a time and unlimited streaming for $9.99 per month.
Does Netflix really expect consumers to shell out $16 per month with no added benefits or improvement in services? The company needs to up the ante if they're going increase prices. How about offering five DVD rentals at a time?
Will Consumers Flock to Redbox?
The hefty increase is causing consumers to look at new rental options, including the handy Redbox DVD rental kiosks conveniently perched outside megastores, grocers and malls. For a buck, consumers can take home a DVD for 24 hours.
Of course, Redbox doesn't offer the same convenience as Netflix's curbside mailbox service. But, Redbox does offer games, a perk the other guy doesn't offer. Who will win the movie-rental wars?
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