(NEW YORK) -- Netflix managed to anger many customers -- and gut its stock price -- with changes in its price structure for renting and streaming DVDs. The company recently lost 800,000 U.S. subscribers, some of whom opted to switch to Netflix competitor, Red Box.
But now Coinstar, Red Box’s owner, is risking its own customer backlash by doing the same thing and raising its prices.
Red Box is hiking its daily DVD rental fees up twenty percent, from $1 to $1.20. Red Box prices will remained unchanged for Blu-ray discs at $1.50 per day and video games at $2 per day.
Although this price hike is not as drastic as Netflix’s 60% increase, it still scared investors, and Coinstar’s shares plunged ten percent in Thursday’s trading.
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