(Reuters) - Outerwall Inc hiked prices for renting movies and video games at its Redbox kiosks to help fund improvements in its business as streaming sites reduce demand for DVDs.
The cost of renting a DVD will increase to $1.50 per day from $1.20, while rental rates for Blu-ray discs will rise to $2 from $1.50, starting Dec. 2. The daily rental rate for video games will go up to $3 from $2 from Jan. 6.
"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," Chief Executive J. Scott Di Valerio said in a statement.
The company said it expects the price changes to hit Redbox rental volumes and that it will provide an update on the impact when it reports quarterly results in February.
(Reporting by Soham Chatterjee in Bangalore; Editing by Saumyadeb Chakrabarty)