At a conference yesterday, Redbox president Mitch Lowe announced that the company will start renting Blu-ray titles from its kiosks for $1.50 a night, according to a report published in Home Media Magazine. The discs should start appearing in the next few months, though it the Redbox site already has Blu-ray titles listed as being available. More than one out of every six Redbox customers already owns a Blu-ray player, and the company is already renting about 40 million movies a month, so it could be in a good position to help grow the demand for Blu-ray titles and players.
A 50% premimum sounds like a lot to pay for Blu-ray, but it’s only $.50 so it may be that the absolute amount is more significant than the percentage in this case. According to the article, Lowe cited some interesting statistics. He said that 20% of Redbox customers would not have bought or rented a certain DVD if it were not available at Redbox. He also cited number for how many Redbox customers go on to buy a movie after they have rented it. As a result, he believes that his service actually helps Hollywood sell movies.