DENVER — Movie rental company Redbox is raising their prices today.
DVD rentals will now cost $1.50 a night and Blu-ray disc rentals will increase to $2 a night.
Despite the increased prices, Redbox remains one of the cheapest movie rental options. New releases cost around $5 for most video-on-demand rentals.
Redbox is also launching a recommendation engine similar to the one used by competitor Netflix.
The last time Redbox raised its prices was in 2001. According to the Wall Street Journal, Redbox revenue dropped 5% to $1.4 billion and operating income fell 9% to $153.2 million in the nine months ended in September.
The company said it had run out of locations to install new kiosks and competition from digital providers as an explanation for the drop in income.
Redbox President Mark Horak declined to say what effect the increase in prices will have on profits next year.
In addition to movies, Redbox is raising the price for videogame rentals to $3 a night from $2, beginning in January. Games currently account for less than 5% of Redbox’s business.