The comfort of knowing that you could rent a DVD from a Redbox kiosk for a buck could soon be a thing of the past, as Coinstar have started raising rental prices in selected areas.

The price rise may not be that much, up from $1.00 to $1.20 per rental. But that does equate to a 20% rise and the loss of that magic $1 rental figure. The changes have been tested in rental kiosks in Austin, Texas, California and Florida.

The good news is that rental charges for Blu-ray discs and game rentals stays constant $1.50 and $2 per night. It seems that Coinstar have looked at the price rise from rival Netflix and decided to come in with a lower rise. Netflix charges went up by 60% which upset some subscribers, many of who are thretening to dump the streaming service.

The rise may not have come at a great time though, many viewers were heading to Redbox because of their prices. Analyst Michael Olson, from Piper Jaffray says that 24% of Netflix subscribers in a survey said they would use Redbox rental kiosks more since Netflix’s rise.

It said that although around 40% will stay with Netflix and go for the streaming only option at $7.99 monthly, 15% are leaving Netflix entirely.

Olson said, “Specifically, 8% will use Redbox more because they are quitting Netflix and plan to replace those movies with DVDs from Redbox, while 16% are switching to streaming-only on Netflix and plan to replace the DVDs they were receiving from Netflix with DVDs from Redbox.”

Redbox have had a successfull quarter showing a profit rise of 99%, but many of their new customers were disgruntled Netflix users, who do not appreciate price rises. By making this moverising their prices, Redbox may suffer a similar fate.

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