Redbox's DVD rental kiosks are attracting movie lovers fed up with Netflix's video subscription service.
But now Redbox's owner, Coinstar Inc., is risking its own customer backlash by raising its prices, the same move that triggered Netflix's recent loss of 800,000 U.S. subscribers.
The plot twist emerged Thursday in Coinstar's latest quarterly report.
The company's earnings nearly doubled, largely because of robust growth at Redbox's more than 34,000 rental kiosks.
But the strong performance was upstaged by Redbox's decision to raise prices for standard DVDs by 20 percent beginning Monday.
The new rental rate will be $1.20 per day, instead of the
current $1 daily rate. Redbox prices will remained unchanged for Blu-ray discs at $1.50 per day and video games at $2 per day.