Outerwall (OUTR) Raises Redbox Daily DVD Rate to $1.50, Blu-ray to $2.00 and Games to $3.00

Outerwall Inc. (Nasdaq: OUTR) announced Redbox daily rental price increases in the U.S. Starting December 2, 2014, the daily rental rate for DVDs will increase from $1.20 to $1.50, and the daily rental rate for a Blu-ray Disc® will increase from $1.50 to $2.00. Beginning January 6, 2015, the daily rental rate for video games will increase from $2.00 to $3.00. Outerwall selected the price points after several months of market testing.

"With new-release movies for $1.50 a day, Redbox remains the best value in new-release home entertainment. Consumers can continue to expect access to the newest movies months before streaming subscription services and daily prices that are still lower than Video On Demand," said J. Scott Di Valerio, Outerwall's chief executive officer. "The pricing adjustments announced today will allow Redbox to continue to offer consumers high quality movies and games while making investments to enhance the customer experience."

Due to the timing in the quarter, Outerwall is not revising its fourth quarter 2014 guidance. While the company expects an adverse impact on Redbox rental volume as a result of the national rollout of the price changes, Outerwall believes the price increases, coupled with Redbox's network optimization initiatives, will help offset future declines in the physical rental market.

The company expects to provide additional details on the impact of the price increases when it reports its fourth quarter 2014 results and pro

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