Blockbuster To Test No-Late-Fee Model

[tgpo]

Blockbuster will test a new in-store subscription service modeled on the similar on-line one pioneered by NetFlix. For a monthly fee, customers would be able to rent as many films as they like (with a maximum of three out at any one time) for an unlimited period without having to pay late fees. Video Store magazine also reported that the grocery chain Albertsons is testing a $19.95-per-month subscription model in their video areas at more than 800 stores in the West. The magazine, however, noted that many video rental outfits view late fees as an important source of revenue. On the other hand, several suggested that the fees may very well drive away customers, particularly during these days of plentiful low-cost DVDs. A Missouri retailer observed that some customers simply don't come back to his store when they have late fees. "Many people say, 'Oh, well, it is just a $15 movie, so who cares if I never take it back."


http://us.imdb.com/StudioBrief/

[ryn05]

I think blockbuster is finally feeling the heat from Netflix. Netflix advertisements are EVERYWHERE on the net, best buy, and dvd players at stores.

Blockbuster is trying out the online rental service under a different name "Filmcaddy.com". I tried their 30 day free trial and it takes the movies 5-6 days to get to you since they only have one distribution point in the US (Arizona). Some of the dvds actually have the blockbuster label scribbled out on the label. If you live on the west coast, this might be a good service.

Netflix has many distribution points across the US, my rentals come from Chicago (only takes two days to get here). Plus, they have more of a movie selection.

If blockbuster did go to a 20dollars a month program, I'd have to switch since you could get a new one everyday (store only a mile from my house).

[txpharoah]

I rented a movie from a Blockbuster once. The movie was $15 for sale at the same store. After 3 days of $2.99 late fees, I got a memo in the mail, stating I needed to return it AND pay $9. This was before DVD-R General, too. So I kept it. For $6 more it would be mine. The store charged my credit card $90 (THAT'S NINETY DOLLARS, as in $10 less than $100) for it's replacement.

They refused to let me buy it for $15, refused to let me replace the movie with another new one for sale in their own store for $15, instead insisting the my version was somehow special, and for rental only, and was worth $90 each. And FYI, that was first-class BS he was trying to feed me. I could only return it and pay the late fees that were about $25 at this point in time.

I about near threw the manager of the store though the front window of his own store when he began to smart off and give me attitude. (I just bought the first season of King of the Hill this past week, and the character in the pilot episode "twig boy" was pretty much the kind of guy I was dealing with.) The manager probably had to go clean out his pants by the time I was done with him, and not a single customer was left in the store by the time I was done with my rant. I've never gone back to that Blockbuster. They can take their movies and stick 'em!

My credit card allowed the charge to go by at $15. They canceled the other $75.

I had late fees at another store about 10 years ago, but they were fake, and since I was the one that had to prove THEY were wrong, I was screwed. It was for items I'd never even rented, and I've got the only card. I've never gone back to that one either.

Beware Blockbuster. Much like Microsoft, you're dealing with the devil. At least with movies, we have choice on places to rent.

[AarontheRipper]

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.

[Doggiedaddy]

If late fees piss you off then return the product as per the contract you legally sign when you rented the film. All you penny pinching misery ran all the Mom and Pop rental business out of town to save a few cents in the short term. Now the big chains you loved have raised the price higher than the Mom and Pop ever would/could have.
I know it sounds like sh*t but it is the truth and the law. You not only agreed to it but caused it to happen. Don't shoot me I'm just the messenger and I did not run all the good rental places out of town, I just could not stop you from doing this to yourselves.

jm2c
(;-{> Dd

[LanEvo7]

Blockbuster's has had this program for about two months already. I've used it. Its $30 a month for unlimited rentals but you are only allowed three movies out. I still think this is better than netflix because I don't like the mail. You get it right there right then. There is a catch though, you can only use it at the blockbuster you sign up at.

[Dj Petro]

Wal-Mart is also running a online sub service which is about the same price as Netflix. Their selection isn't as good as Netflix though. I wouldn't pay an extra 10 bucks to get it from a blockbuster store because I don't have the time often to make it down there and search for something to watch. On NF I just select the movies I want and they come to me without me doing anything. I get home from work and they are there in the mailbox. I watch it and throw it in the mailbox on the way to work. It is convenience that is the sell on NF.

_

[presto]

The movie was $15 for sale at the same store. After 3 days of $2.99 late fees, I got a memo in the mail, stating I needed to return it AND pay $9. This was before DVD-R General, too. So I kept it.

When you rent something, both you and the store are bound by the rental agreement. You can't just decide after the fact what you think is fair anymore than they can (unless you both agree).

Yelling at someone who is doing his job is nothing to be proud of. You should have paid the late fee. That is what you agreed to when you rented the movie.

[txpharoah]

The movie was $15 for sale at the same store. After 3 days of $2.99 late fees, I got a memo in the mail, stating I needed to return it AND pay $9. This was before DVD-R General, too. So I kept it.

When you rent something, both you and the store are bound by the rental agreement. You can't just decide after the fact what you think is fair anymore than they can (unless you both agree).

Yelling at someone who is doing his job is nothing to be proud of. You should have paid the late fee. That is what you agreed to when you rented the movie.

1. Paying 6x the value is NOT part of the agreement, only replacement costs.
2. Doing your job and being a smart-ass are not the same thing. And remember that if you mess with the bull, you'll get the horns.

[Doggiedaddy]

I have found the the thing a bull produces the most of is fertilizer.
TAKE THE FRICKING MOVIE BACK ON TIME or don't cry foul. I hate late fees too but pay them when I owe them. My nearest rental establishment from my residence is about 15 miles each way [I choose to live in the sticks]. This is a pain in the butt but I get the movies back 99.9% of the time so the store can rent it again. WHY? Because that is their business renting their product they paid for, not wet nursing me to bring them back or apologizing because I do not. Lets face it late fees=guaranteed rental/usage fees thus profit. A sure fire way to not pay late fees is to buy the movie just like the rental store did.
(;-{> Dd

[thayne]

I tried Walmarts free trial, but they suck. twice as slow as Netflix. When netflix shipps a movie 99% of the time I get it the next day.

My only complaint is they have a lot of movies I want marked at "Long Wait", "Short Wait", etc.

[LanEvo7]

Whether it is ethical or not to charge 10, 15, 20 times the movie's actual value is another question.

When you sign up for a blockbuster or any video rental store agreement, you are essentially signing a contract. Assuming you were not forced or tricked into signing it, you have obligations that you have to abide by. If a person is to lazy, forgetful, etc to go and return a movie, he/she should pay the extra 10 or 15 dollars so there is no worries.

[thayne]

I about near threw the manager of the store though the front window of his own store when he began to smart off and give me attitude. (I just bought the first season of King of the Hill this past week, and the character in the pilot episode "twig boy" was pretty much the kind of guy I was dealing with.) The manager probably had to go clean out his pants by the time I was done with him, and not a single customer was left in the store by the time I was done with my rant. I've never gone back to that Blockbuster. They can take their movies and stick 'em!

Did that make you feel tough???? I bet you really showed them didn't you??? I saw a guy just like you verbally assult some poor kid at McDonalds. I waited for him outside and kicked his ass....

1. Paying 6x the value is NOT part of the agreement, only replacement costs.

Well, their replacemnent cost is $90. They get charged more for a movie than a retail customer, and the disks are labled different. They cant just pull a $15 dvd out of it's case and rent it because that would be a violation of their aggreement with the MPAA. So it's your fault you got charged $90....

That said I hate Blockbuster and will never rent from them....

[LanEvo7]

They get charged more for a movie than a retail customer, and the disks are labled different.

Do they really get charged more? Why would it be violating the agreement with the MPAA? You are allowed to rent or lend any original movie that you own under the fair use act if i recall correctly.

[SVCDummy]

I agree with TGPO. It does look like a good deal and since the store is usually just around the corner it becomes way to easy to use the service.

I called my local BlockBuster this afternoon and they tell me the program won't start with their store until Aug 1st. I'll wait.

As for the other rants...

You can look at their sheer number of posts and tell they have little or no life outside the forum. How could you possibly expect them to tear themsleves away from the forum lifeline to take responsibility for their own actions much less the contract they sign. Geezz. Get a life.

[thayne]

They get charged more for a movie than a retail customer, and the disks are labled different.

Do they really get charged more? Why would it be violating the agreement with the MPAA? You are allowed to rent or lend any original movie that you own under the fair use act if i recall correctly.

No way. Even in the warning it says for private in home use only. I know they pay more cause I know someone who worked there.

[rvl123]

I love my Netflix subscription.

I watch 5-6 movies a month with the service (about 3-4 dollars per rental).

When I had Blockbuster, if I was a day late, I would be charged $11.

Blockbuster sucks....end of story.

Oh, and by the way, to the people who say that the rental DVDs are different than the retail DVDs - how can you explain the fact that they sell DVDs that are "pre-viewed" at a very low price? I think they just resurface the disc and sell it off. I have bought some of those discs and they often have the Blockbuster safety stickers on them.

I don't really think that anyone else beside Blockbuster has any real chance of competition with Netflix...at least not for a while. It took them a while to get their service up and I have to say, they have come a long ways. I remember getting the service when they first started and having to wait a week to get a movie. Sufficed to say, I cancelled within a month. I decided to try it again last year and now it only takes 1-2 days. So what I am saying is, it will take a long time before these Netflix clone services can catch up to the efficiency of Netflix.

OK...I'm done...

[emats]

When Blockbuster charges late fees at high rates, it is because they do not care about what the video itself costs -- but charges the customer for the profit they miss out on if it had been returned on time (opportunity loss). From a business perspective, this is a legitimate arguement. Having the customer repay the $15 means nothing if you missed out on earning $150 if it had been returned. Especially, when you have to pay $15000 overhead for the place to keep it running as a profitable establishment. However, $90 is too high IMO, you'd want to still keep repeat business.

[BJ_M]

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) ..

[thayne]

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) ..

I heard Walmart does that too on the DVD's they sell

[next]

My take on this is that there is no way that a local Blockbuster can have the inventory to compete with a Netflx or even Walmart's new entry.

I think we are seeing that the internet works. In Netflix's case they have 13,000 plus titles. Walmart claims the same. A local Bloclbuster can't come close.

The online option is superior in my opinion.

Bricks and mortar versus the US postal service. I would not want to be Viacom right now with all those folks logging on and walking to their mailboxes versus having to stroll through the shelves at a local Blockbuster. And of course having to go back and return those disks.

Sounds like a great opportunity for Starbucks but I don't even think that will help.

[ryn05]

My blockbuster doesnt have the all the movies you can rent deal yet. They do have the 20 bucks a month for video game rentals, one out at a time.

All they have is the bs "Rewards" program where you get one free rental a month or something....which is a rip off, especially for the price of the program. Charging 5 dollars to rent a movie for two nights is excessive and thats why Netflix's stock has been rising.

If blockbuster did do the 30 bucks a month program per month (a previous poster mentioned), i think it would work, but most people would think that they wouldn't spend that much money a month on movies...except for your serious hardcore movie people who have nothing better to do on weekends besides be a hermit and watch movies constantly. 30 bucks would rent 6 movies at current cost....

With rent, a 50 dollars cel phone bill, electric, cable internet/tv, water, gas, etc...I dont know if I have an extra 30 bucks to donate to the microsoft of video rentals for their services.

[Supreme2k]

About the "Special" blockbuster videos for $90: I previously worked at Blockbuster. There is NOTHING special about their videos. They actually get them cheaper, in bulk. The business itself is licensed to rent videos, so the videos don't have to be special at all. Hell, they could have charged him $10 and made a profit. As far as assuming profit loss from that one movie, that's crap too. The running statistics for Blockbuster showed that most people squezzed every last second from their rental time, so a three day late time would be equivalent to one rental (or less if it's an older movie). The turnaround for replacing lost/stolen movies is (was) three days, so they would only lose $3-$5 on that (if they "sold" that customer the lost DVD at $15). There is absolutely NO WAY that they would have missed out on $90 of rentals from that movie, even after 2 weeks.

One of the reasons that I left BB (besides crummy wages) was lousy customer service. The quick turnover on employees meant that you never got "career" workers who cared about anything but being jerks to customers and flaunting their perceived power.

Let me tell you, most of the people at Blockbuster at least deserve to be yelled at. As a matter of fact, I often had to play "good cop" to keep the customers from tearing the clerks new arses.

thayne, no need to bring up your "ass-kickin'" fantasies. I'm sure youswing rooftop-to-rooftop with your utility belt, and McDonalds gave you a McMedal for your heroism

Anyway, I've tried the service, and it is much better than Netflix, time-wise only, though Netflix has a much better selection (obscure and out-of-print titles).

[LanEvo7]

My local blockbusters actually has two new programs. There is one $30 for unlimited movies and $20 for unlimited game rentals. Its great for people who like to rent the movies for "other" purposes.

[emats]

Supreme2k: Not saying it's acceptable business practice to charge $90 (that's a ripoff in anybody's eyes), but maybe something like $25-30? They still have to go through the hassle of recognizing, ordering, paying, securing and restocking the missing movie. That takes time and money also. The replacement movies just don't pop out of the sky when someone decides to keep it. Also, what about the movies that are out of print? What's the turnaround time for that? I wanted to rent Scarface the other week and couldn't because someone lost or decided to keep their only copy. What do they lose by not having THAT movie over the lifetime of the business?

[Supreme2k]

I have no problem with a "suggested retail price" scenario, where it's 20-30% higher than sale ($25-30 seems fair enough), but my main point that "their" videos are not special and don't cost more still stands. The lost videos almost drop out of the sky, since they just have to mark the video as lost/stolen in the computer for a whole chain of "virtual" events to take place, which results in the video being replaced a couple of days later. I don't mind a case-by-case evaluation on "lost" out-of-print videos, but we were talking (mainly) about was txpharoah wanting to replace the video with one that was readily available on the shelf.

[next]

Regardless....I'm just glad I don't have to manage all of those bricks and mortar leases.

[emats]

Supreme2k: I DO see what you're saying and you do make sense - but it's much less of a hassle if they just charge a flat fee since there are many cases like this. It's a high volume business, keep in mind, not a "mom and pop" candy store, you can't just replace one from the "for sale" inventory with one from the "rental" inventory without making changes to their books and following through on the restocking, replacing the one on the shelf, etc. issues. There are just too many cases like this to pay attention to. It may not be the fairest solution, but flat fee is the way to go, however, $90 is too high. I'd want txpharoah's repeat business if I were them.

Oh, and the "chain of virtual events" you refer to are virtual only to the users of the computer system. Fact is, they paid MILLIONS to make it virtual to you.

[thayne]

thayne, no need to bring up your "ass-kickin'" fantasies. I'm sure youswing rooftop-to-rooftop with your utility belt, and McDonalds gave you a McMedal for your heroism

No I don't, but I don't go around verbally abusing 19 year old kids because they are just doing what they are told, and if some guy came in verbally abusing me I'd cop an attitude too. Working a job where you have to deal with the public is bad enough, but you shouldn't have to deal with some prick who's giving you shit for something he's clearly in the wrong for.

I don't go around starting fights either, but that jerk hit a nerve in me and I couldn't resist. Is it wrong, sure it is, but it felt so good

I'm generally pretty easy going and don't give people crap, especially when it's *MY* fault. I don't take crap either. If I have a problem I ask to speak with the manager and remain as polite as possible. If the problem is my fault, even when it pisses me off, I keep my mouth shut and take the consiquenses.

[CloudBurst]

I believe buying in bulk they (or other "Mom and Pop" outfits) get dvd's at a discounted rate of like $3 to $4 dollars each according to deals with the movie people (MPAA, distributers...don't know the exact details). now what they spend on those funky cases and all those damn stickers they slap over the tops of the dvd's i would not know.