Getting your player ready...
Netflix is giving Redbox a golden opportunity to gain some ground.
Beginning today, Netflix, the largest U.S. video-subscription service, will hit its nearly 25 million U.S subscribers with rate increases of as much as 60 percent. The sticker shock is expected to make Redbox, which rents DVDs for $1 per day through kiosks, even more enticing to movie lovers.
Netflix Inc.’s higher prices will drive business to rental chain Blockbuster and other home-entertainment rivals too, but none is better positioned to take advantage of the disruption than Redbox, according to Wedbush Securities analyst Michael Pachter.
