Monday, November 28, 2022


October 20, 2014 by · Leave a Comment 

Media analyst Eric Wold is warning that reported plans by Redbox to increase the rental rate for DVDs and Blu-ray Discs at its kiosks could backfire and result in the same hit to its share price that Netflix experienced last week. Several other analysts had agreed that Netflix’s recent increase of $1 per month for new customers (and up to $3.00 per months for 4K ultra-high-definition discs) had resulted in a slowdown of subscriber growth. Redbox has reportedly been testing price increases in select markets. In a note to clients on Friday, Wold wrote, "We believe it provides a valuable comparison — especially when you consider that [some of] Netflix’s content is unique and there is nothing unique about the content offered in Redbox kiosks, since a good portion of that content is actually available 28 days earlier through other sources." (After closing on Friday at $357.09, down from its 52-week high of $489.29, Netflix stock closed at 356.28 on Monday.)