The Consumer Memo, 10/23: Airlines raise fares again

What's the reason?American Airlines raised fares on round-trip flights by $10 and was followed by United Airlines and US Airways Group Inc., according to FareCompare.com.

The boost is the fifth this year and the second in two weeks, Rick Seaney, chief executive officer of FareCompare. There were 15 fare increases in 2008, he said.

DVD sales
Hollywood studios are considering a “sale-only” window for new DVDs that would delay consumers’ access to rent new titles, Netflix Inc. Chief Executive Officer Reed Hastings said.

The delay would be voluntary and discussions are part of an effort by movie studios to give a jolt to declining DVD sales, Hastings said. No agreement has been reached and other rental services may choose not to participate, he said. By accepting delayed rental releases, retailers may receive cheaper rates for buying movies, according to Hastings.

DVD sales have dropped about 10 percent this year, as more people get videos online or rent using Netflix’s mail-order service or Coinstar Inc.’s Redbox kiosks. With a sales-only window, customers wouldn’t be satisfied having to wait for new releases, said Douglas Anmuth, an analyst at Barclays Capital in New York.

Puck’s iced coffee
Celebrity chef Wolfgang Puck has added to his line of retail food products with the rollout of ready-to-drink iced coffee beverages. The iced coffees, which will be sold by year end nationwide through Whole Foods Markets, come in four flavors: Vanilla Fusion, Double Blend Mocha, Crème Caramel and Café au Lait. Prices: $2.39 for a single bottle, and $7.99 for a four-pack.

Group wants probe in book price war
The American Booksellers Association sent a letter Thursday to the U.S. Department of Justice, asking for an investigation into the cost-cutting race among Amazon.com, Walmart.com and Target.com. The price war has resulted in hardcovers such as Sarah Palin’s “Going Rogue” being offered for under $9.

The booksellers association fears that such prices are “devaluing the very concept of the book” and make it impossible for smaller stores to compete. Some smaller stores, however, have said that they’re not concerned about the price competition. They say it affects the most commercial books, which are less vital to independent stores than they are to discount clubs and superstore chains.

Hulu fees coming soon
Hulu, the free online video site that runs many television shows and movies in their entirety, will start charging fees at some point, one of its owners said. Hulu has struggled to make money despite its popularity as an ad-supported site. News Corp., which co-owns the site with NBC Universal, Walt Disney Co. and Providence Equity Partners, said it hasn’t decided what form the subscription model would take and is concentrating for now on delivering a good experience for users.