Blockbuster To Test No-Late-Fee Model

[txpharoah]

For the Texans: http://www.bannedbooks.info/2002report.pdf

[Yirkin]

I love Netflix. I have an unlimited supply of anime for a fixed cost each month.

BTW, doesn't Netflix have a patent on their rental model? How will that effect Blockbuster and Walmart?

http://www.consumeraffairs.com/news03/netflix_patent.html

Howard

[flitzanu]

im still thinking you guys are screwed up on the cost of dvds that BB is buying. i don't know anything about the prices, and i DO know that VHS tapes ARE more expensive for them to purchase because they are higher quality and will not wear out as quickly as standard cheap tapes. now, dvds are all the same thing, and logic and business ethic would tell you that if they can sell a "previously viewed" used dvd for 9.99 (or less) that will msrp at 19.99-29.99 and they payed 90.00 or more for it....why would they sell it that cheap?

and what of those HUGE hits that they get so many copies of? are we to believe that (at $100) a store may get 50-100 copies of a new release and that store has payed $5000-$10000 for that one title? cmon folks.

1 rental @ $5 = 1000 rentals to make up for that cost. or for that matter, even at $100 for a movie, that's 20 rentals to cover the cost. i just don't think these stores have that type of revenue to invest 5k to 10k in movies that they may not have success with.

now, i will agree that perhaps blockbuster has contracts with mpaa/licensing companies to pay THEM certain fees for movies, but the movies are the same dvd as retail.

and as far as being edited, they would have to say on the packaging if the movie was altered from it's original form, hell, you KNOW that if it is fullscreen it says "this film has been altered from it's original format, it has been formatted to fit your tv screen" or however it's listed. you can't sell something that has been altered without giving a consumer knowledge. walmart LISTS their audio cds as being edited, and i've not once seen an "edited" dvd ANYWHERE, other than an R rated or Unrated version.

just my 2c.

[darkhunter]

test

[darkhunter]

test

[txpharoah]

1 rental @ $5 = 1000 rentals

Flawed logic. It would take years to reach that number. At 2 days each per rental during the initial 30-day "new release" period, that's maybe 15 rentals, if they are all returned on time. Then they go for 3-5 days apiece, and even if turned in early, that's about 2-3 per week if it were checked out back to back all year long. There are only 52 weeks in a year, so maybe, considering everything I just stated, you'd get 175 rentals per tape/dvd per year. But you don't. In reality, discs get several dozen views at most before being sold off, and then it's back to a few that stay on the shelf for "repeated" rentals. Many of them actually stay there unrented for long periods. Movies quit being rented after a few months.

While in your dream world of 175 rentals x $3-5 each may equal some number of around $700 per movie, realize that's if the movie stays rented the entire year never seeing a shelf of blockbuster. Plus we have insurance, rent, franchise fees (those aren't corporate stores FYI), employee benefits, payroll, etc.

Sorry. They buy their movies for about $10-20 apiece.

MPAA can not overcharge Blockbuster, especially since MPAA has no say in it. The studios make the sales, and they're lucky to have a loyal buyer. Charging Blockbuster magic fees of $90 per movie would be similar to monopolistic practices (using leverage to control another industry), even with license agreements, and not tolerated in the United States.

If you don't believe me, again, call Blockbuster's Corporate HQ in Dallas, Texas. That's where this thing is run from.

[BJ_M]

..........and as far as being edited, they would have to say on the packaging if the movie was altered from it's original form, hell, you KNOW that if it is fullscreen it says "this film has been altered from it's original format, it has been formatted to fit your tv screen" or however it's listed. you can't sell something that has been altered without giving a consumer knowledge. walmart LISTS their audio cds as being edited, and i've not once seen an "edited" dvd ANYWHERE, other than an R rated or Unrated version.

just my 2c.

no one has to tell you a movie is altered in any way, there is no law that says so and since i work IN the movie industry , let me assure you its done all the time , even while a movie is in general release.
... in fact a LOT of films are altered for the market they are going to be sold in ... even films in theaters ... for example did you know that there are about 9 different versions of 2001: A Space Odyssey



its a well known documented fact that blockbuster carries edited films (BB doesnt do the editing though - see below) ... in fact many times (but not always) the alternitive version is listed on IMDB, identifing as BB version . Jerry McGuire and Titanic are two well known ones and been mentioned many times.
.. in fact there are web sites devoting time to this subject .. i list a few here (do a search on google for more):

http://www.lumpen.com/fatherland/groupo1.html
http://slashdot.org/articles/02/08/07/175254.shtml?tid=97
http://www.coldfusionvideo.com/goodies/blockbuster.html

this seems mostly a usa trend because in canada BB carries WS and NC17 movies and from what ive seen , unedited versions (canada dvd's are mostly made in canada and the packaging is different, same w/ cd's)

Blockbuster does not "edit" movies. To do so would be illegal, and lawsuits cost money. Instead, because they have enough outlets to give them considerable bargaining power, they negotiate with the distributors and studios to carry tamer, rated versions of unrated films (a deal which the studio has every right to grant, as they have paid the moviemakers for the express right to own the film, lock, stock, and barrel). And why? No, it's not because the Board of Directors is overrun with old fuddy-duddies on a personal crusade to keep the citizens of America from seeing nipples. Those executives don't really care a rat's ass what those videocassettes contain, so long as they rent. And Blockbuster wants to attract family traffic, so they make a very visible effort ("gesture," really) to appear family-friendly to middle America. Think about it; if it were really a moral issue, would Blockbuster stock at least two copies (R-rated, naturally) of every single release from the Playboy Eros line? Would they stock frankly unrated foreign films? It's not a matter of content, it's a matter of image, a concept on which the entertainment industry is built on from top to bottom. Boycotts are bad for business, so the powers-that-be simply carry edited versions of Requiem For a Dream as a bottom-line decision.

[yg1968]

I believe that VHS movies use to cost more for Blockbuster and other rental places a few years ago. The reason was that the VHS movie first came out at $130 or so. At those prices, nobody bought them except rental stores. And then a few weeks later, it would come out at $20. The general public therefore had to wait a few weeks. This is no longer the case as VHS movies and DVD now can be bought at the same time that they are first rented in rental stores. So I believe that Blockboster now pays $20 like everybody else.

[Gazorgan]

Ya'll missed the point. There aren't going to be any movies to rent. 0-day releases (where did I get that phrase?) are almost always all rented out. Imagine now if instead of a 2-day rental( not 5, new releases are back next day) you could keep that new release a month? I can't see block buster tripling their inventory of new releases just so people can keep them longer.

[coyote]

On the subject of blockbuster charging 90 dollars for a replacement to a 15 dollar movie.....a lot of the disks they have are different.

I have noticed (at least in the new york area) that a lot of rental movies have commercials and previews of other movies on them, mind you not the kind you choose from a menu, but built into the run sequence on the dvd itself.

Just do netflix. I'm in manhattan, and if I send a disc back on a monday, they get it tuesday, send out the new one the same day, and I get it on wed (they have a distribution point in queens). So I am averaging about 3 movies every 2 days or something like that

[BJ_M]

to bad netflix doesnt open up in canada - but it takes longer to mail anything here (if it even arrives)

[jnk76]

I think 99% of people would be pushing to get as many movies as possible in the month period. I think turnaround will be at most weekly or bi. I can't see someone keeping for month......if so then Blockbuster would win.

[thayne]

if they can sell a "previously viewed" used dvd for 9.99 (or less) that will msrp at 19.99-29.99 and they payed 90.00 or more for it....why would they sell it that cheap?

umm, ya think maybe cause it's used?????

[jnk76]

BJ_M,

to bad netflix doesnt open up in canada - but it takes longer to mail anything here (if it even arrives)

agreed I wish it would come here as well. Shipping is fast within a few hundred km radiuss of T.O. and if in major city. When I was selling a bunch of stuff on ebay it would get to the GTA areas usually in one day regular mail....they say 2 though....express is one day.

[Metaluna]

only issue i have w/ blockbuster is that some of the movies they carry are edited per thier specs (and they dont carry some types of movies they consider to hardcore (not porn - but "racy" type art films sorta types)
... i think only in the usa though as the canada blockbusters seem to carry the unedited versions (not sure) ..

This by itself nullifies any pro-Blockbuster argument I've heard. I'm not sure if they do it with DVD's but they definitely do it with tapes. I have no use for a business that feels it needs to be a nanny and sterilize and homogenize everything in order to make the world safe for soccer moms and their broods who come in looking for the latest Disney releases. If I want to watch a hacked up, chopped up version of a movie I'll wait for it to come on to USA Network and watch it for free.

By the way, there are some good-sized chains out there that can compete with Blockbuster on selection (nobody competes with Netflix on selection), but do not try to be your nanny. I have a MovieScene (formerly Video Update) just up the street from me that has the usual unedited/unrated versions of films (same as you would find at retail). They even have porn there, not that I would know anything about that .

[DiscoverPlatinum]

Yeah but late fees are bad. Sometimes u be like busy, or don't feel like going anywhere when the movie is due back.

[BobV]

I've been dealing with Netflix for a little over a month now and in that time I've seen 20 movies or about 18 a month. If I put a move in the mail today I'll have a new on by Wednesday. I find it much more convienent than rental shops. Pretty good deal if you ask me.

I got tired of the store late fees too. If I did not remember the move in the morning on my way to work, I'd have to go 14 miles (round trip) out of my way to return it that night. Now if I forget to put it in the mail its no big deal.

[MrMungus]

I'm not sure if you were aware of this, but blockbuster already has an instore unlimited rental programs for about $20 a month, and under that you could have two out at a time and there were no late fees. IMHO, that program is far superior to netflix, or any other online rental because you don't have to wait several days to get your movies. I could see the online programs useful in a couple of instances: 1) You are so lazy that you're not willing to get up off your ass to drive down to the rental store, or 2) You live in the middle of nowhere, and rely on the USPS and the internet as your link to civilization.

Okay, I thought of one more, the free trial that you cancel as soon as it's over.

That's great if you like Blockbuster's version of movies (edited) and don't mind waiting in line.

[shelbyGT]

I enjoy netflix as well. Too many times I have gone to blockbuster only to find they are out of stock of what I want. The turnaround on the movies is fine by me, 2 days to get to me.

The selection, cost and everything else is great imho. I have a queue of about 55 movies right now, so I kind of get surprised as to what movie comes next

[MikieV]

FYI, that IS the replacement cost of a RENTAL Dvd. All rental outlet's have to pay a premium rate for DVDs which are to be rented. This gives them a different licence than what you get with a retail DVD.

I thought BlockBuster (and other big chains?) had worked-out a deal with the distributors, where BB would pay less per-video (up-front), but would then share the rental profits.

I thought that is what allowed the trend of "guaranteed" new releases - the chains could buy a large batch - cheap - to meet the short-term demand for a given new release. It would be prohibitively expensive to do so at "regular" prices.

The non-chain stores were understandably angry about this, and I can't remember if the idea got squashed, or is still in use.

Mike

[MikieV]

I'm not sure if you were aware of this, but blockbuster already has an instore unlimited rental programs for about $20 a month, and under that you could have two out at a time and there were no late fees. IMHO, that program is far superior to netflix, or any other online rental because you don't have to wait several days to get your movies.

Okay, I can see how the that would be more convenient.

I could see the online programs useful in a couple of instances: 1) You are so lazy that you're not willing to get up off your ass to drive down to the rental store, or 2) You live in the middle of nowhere, and rely on the USPS and the internet as your link to civilization.

Okay, I thought of one more, the free trial that you cancel as soon as it's over.

How about: 3) Not willing to get up off your ass to drive down to the rental store, because you've already watched everything you are ever going to watch from their limited "instore" selection.



Mike

[BobK]

I've used Netflix. I just tried WalMarts 30 day free trial. Results:

Netflix- movie returned in mail on day 1, new movies received in mail on day 5 (4 days turnaround).

WalMart- movie returned in mail on day 1, new movies received in mail on day 7, or 8 or 9 (7 to 9 days turnaround).

[posit]

I called my local blockbuster and they don't have any type of movie program going on, they do have one for video games. The person I talked to had never heard of any blockbusters doing anything like that so I emailed corporate. Can anyone tell me of any exact stores doing the program?

Posit

[sammie]

Wow, has this simple announcement generated a lot of controversy. My thoughts are these. I do 95% of my rentals at Netflix. The main reasons are; most of BB's movies are full frame, the selection at BB can't begin to compare with Netflix and the fact that (for the most part) the movies aren't re-edited at Netflix.

I do rent some at Blockbuster. Mostly brand new stuff the kids want to see. Why? it's easier to get that new release at Block Buster because they have 50 or 100 copies. With Netflix you typically end up waiting about 2 - 4 weeks for that hot release. Second, the kids don't care about extra editing or full frame.

My other main grievance about BB wasn't so much the late fee, but the quality of the disks. A huge proportion of BBs stuff is just plain unplayable. Scratched, chipped caked with goo. Never seen anything like that from Netflix. Have no idea why that last one should be true, but it definitely is.

[TenaciousJP]

I went to Blockbuster for the first time in about a year (I was babysitting, and only their store had the movie the kids wanted to see). They have improved a little. Now, they carry the widescreen versions of DVD releases, TV and other box sets, and more foreign films and unrated versions of DVDs.

However, I still dislike going into their store, and don't go unless I have to.

I've been using NetFlix for a while, and it is terrific. I canceled before the free trial ended, and they gave me a 6 month discount: 6 months at only $14.99/month. Hell, since their service is superb, they actually deserve the full $20 a month. I get movies every other day, since there is a distribution center a few hours away from where I live. Also, the customer service is excellent, and you can't beat the selection! The only improvement they could make is being open on Saturdays, since the USPS has regular delivery on Saturdays.

Also, I don't know if anyone has this where they live, but Hollywood Video is offering an unlimited rentals program. Only $19.99 a month, and you can take out up to 2 items at a time, including games. It's well worth it for the games, since they run $5.99 for a 5 day rental. Thanks to this plan, coupled with NetFlix, I have seen and played more movies and games than ever before.

-J