Posted on 03/04/2010 6:59:41 PM PST by max americana
Five years after Blockbuster announced in a massive marketing campaign that it was getting rid of late fees, they're back.
MSN Entertainment: Academy Awards coverage In an effort to to compete with rival Coinstar's (CSTR) Redbox vending machines and mail delivery service Netflix (NFLX), the video rental company is returning to charging customers for returning movie rentals late.
As of March, Blockbuster is charging $1 per day for up to 10 days after a rental is overdue. If the rental is 15 days late, the customer will be charged for the full price, which could be as much as $29.99 for a new release. A customer who finds the missing rental and returns it within the next 30 days, will get a store credit for the full price of the DVD minus $10 in late fees.
"We think this is very forgiving. You have 45 days to bring it back. It's similar to what Redbox does," Blockbuster spokes-woman Michelle Metzger told The Dallas Morning News.
The move is designed to get the popular titles back on the shelves more quickly.
About 80% of Blockbuster's rentals are new releases, and customers on average keep rentals out for 4.7 days, Metzger said.
Shares of the stock were up 10 cents Thursday to 40 cents.
(Excerpt) Read more at articles.moneycentral.msn.com ...
I wouldn’t buy any stock in Blockbuster.
Blockbuster will be out of biz in 18 months.
Netflix recently made a deal with one of the studios to delay their new release DVDs for 30 days before making them available for rental. I have been using NF less and BB more because of it.
I always feel a little sorry for them when I drive by my local Blockbuster and see the sparsely occupied parking lot.
Survival of the fittest, though. Too bad they couldn’t find a better way to be competitive.
Every Blockbuster store that I know of in town (Boise, ID) has closed it’s doors. About 6 or 7 of them.
Locally they got killed by Hastings with cheaper rentals and more forgiving on late fees also books, music and coffee.
Netflix/Redbox was the nail in the coffin.
I’m sure there are a few left in town somewhere, just not in the areas I go.
BlockBuster—Talk about a dead business model.
You can rent $1 DVDs from a machine at Walmart and the supermarket. You can stream a DVD from Amazon and Netflix. My public library has a vast selection of DVDs. You can reserve them over the internet
Redbox for the win.
About ten years ago I went into the local BB and in order to rent a movie they wanted my SS# and a lot of other information. I said no and have not been back since.
I agree with Blockbusters move.. I got tired of going into Blockbuster and seeing all the new titles rented out.
That’s what they all say
Blockbuster does boast of more titles than Redbox.
Good Riddance to Blockbuster, as their arrogant late return policies pissed me off more than once ... one time charging me a late fee and then when I asked for the DVD back and would pay the additional rental charge, they refused to waiver the late fee and insisted that I pay *that* as well as the new re-rental fee ... I walked out and never went back.
Blockbuster needs to diversify... Say, buggy whips or something since they seem to have a fondness for antiquated technology.
That was a ridiculous statement.
Nobody puts a gun to anyones head forcing them to rent from Blockbuster and if you don't want late fees DONT BE LATE returning the rental.
I hate blockbuster ... period... glad to see the bastards go.
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