Sample Essay on:
Article on Redbox Increasing their Prices

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Essay / Research Paper Abstract

This 3 page paper looks at an article published in October 2011 regarding the DVD kiosk rental company Redbox. The paper starts by summarizing the article which discusses a price increase in the rental prices of the firm stimulated by the Durbin Amendment and the discusses the article content and gives an opinion on the issues. The bibliography cites 3 sources.

Page Count:

3 pages (~225 words per page)

File: TS65_TEredbox.doc

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Unformatted sample text from the term paper:

a day. Starting with the tag line "Have we learned nothing from Netflix" the article specifies that the price increase will take place on Halloween calls the increase "quite the trick" (PC Magazine Online, 2011). The article goes on to discuss the reason for the price increase, stating that a main influence is the result of a recent legislative change; the Durbin Amendment (PC Magazine Online, 2011). This amendment has the potential to impact on consumers in two ways. The first is with the limit that it places on interchange fees which banks charge, limiting the mount of money that banks can make from retailers when customers use their debit cards. The response of the banks has included the banks indicating they may be introducing fees to debit card users when they pay with their cards. This does not have a direct impact on Redbox (PC Magazine Online, 2011). The second provision is the floor which has been added to the debit interchange fees. The article estimates that this latter provision of the amendment will be adding about $0.10 to the cost of each debit card transaction. Overall, they estimate that this will be adding $0.05 to the cost of every rental for the firm. It is noted that this increase is much less than the increase which was imposed by Netflix earlier in the year, so may not be as detrimental, but Blockbuster are likely to be pleased as they are retaining $0.99 rentals (PC Magazine Online, 2011). However, the article then goes on to give more bad new to Redbox customers; at the time of writing the article there was an agreement with some suppliers that Redbox would agree to wait 28 days before releasing then to rent, but it has been reported by Bloomberg ...

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