Blockbuster to add video games to Web rental service
Coming soon to subscribers of Blockbuster Video's Total Access service are video game rentals. On Wednesday the company announced it would be adding gaming titles alongside movies to its movies-by-mail monthly service as part of a pilot program.
This program will start in the second quarter of this year, and will only be open to a limited number of subscribers. The company hopes to have it available for everyone else by the "second half of the year."
Worth noting is that Blockbuster is making a notable distinction between the value of films and video games in its brick-and-mortar stores. Subscribers of the Total Access service currently get a handful of free in-store movie rentals each month, whereas for game rentals the company will simply be offering them at half price. Such movie and video game rentals are subject to due dates and late fees however.
Regardless, this program is an important step for Blockbuster, which Yahoo Finance recently put on its list of "15 Companies That Might Not Survive 2009." By offering video games only in its stores it was getting direct competition from a number of other games-by-mail services like Gamefly, Numbthumb, Gottaplay, and user swap site Goozex. This move also gives it a wider content offering over rival Netflix, which has been receiving much attention for getting its streaming service in a slew of new consumer entertainment devices.
Josh Lowensohn writes for Webware.com, CNET's blog about Web applications and services. E-mail Josh, or follow him on Twitter at http://www.twitter.com/Josh. 




Blockbuster's online prices are actually pretty competitive. Sure, you don't get as much out of the service as you did two years ago when they were throwing free rentals at you left and right, but that was just to build a subscriber base.
1 at a time, 2 per month: $3.99 at bbi, $4.99 at nflx
1 at a time, unlimited: $8.99 at both
2 at a time, unlimited: $13.99 at both
3 at a time, unlimited: $15.99 at bbi, $16.99 at nflx
Those are Blockbuster's by mail options. You won't get free in-store exchanges, but each envelope will give you a discounted movie rental ($1.99) in the store. On the other hand, Netflix offers streaming content, which might give it a slight upper hand unless you don't use that. It's a shame people think they're getting such a better deal by switching to Netflix.
TheTiredGuy:
For the first few years, it used to be that when your mailer was scanned at the store, your next one would be sent to you (you didn't have to wait for it to reach their distribution center). They changed that, however, so now you must wait for it to get mailed back before your next one is sent. On top of that, to save on shipping costs, mailers are only mailed back on the mornings of Monday, Wednesday, and Saturday.
I would bet if you put them in a USPS post box, you'd get your next DVDs quicker than if you had returned them to the store.
I really don't see what all the fuss about marrying Netflix and Gamefly is in the first place. The two services work great individually. It isn't as if the user needs to give any thought to their individual accounts. Both services are automatically billed and both offer a service catering specifically to each audience
Games and movies have been and always will be two unique forms of entertainment and as such, they differ on a variety of levels. Cost, demand, core audience... Gamers are a completely different customer base with their own unique set of needs and problems. Gamefly is the only online rental service out there that has been able to understand this and thrive in the process and kudos to them. It doesn't sound easy. Add to that that Netflix just recently announced 10 million subscribers and... well... I think both are doing just fine as they are.
I've used Gamefly for games pretty much from their inception and have grown with them over the years. I am completely satisfied with the service. It caters to the gamer and has steadily been tailoring that intention over its lifetime. When I log into my gamefly account and start playing around with my queue or searching for games I know exactly what I'm going to get and the added benefits of long-term membership only add to that.
In addition, I've used Netflix for movies for longer than I can remember. I'm not a huge movie watcher so I've been on the unlimited 1 at a time plan from the start and have never had a problem.
And therein lies the fundamental difference with this Blockbuster attempt. Blockbuster is by far and large, a movie rental outfit. This latest offering is not one made with the devoted gamer in mind. It's made for people who rent movies who want to rent a game once in a while. That's a totally different mindset.
I just don't think it's going to be enough to grab a significant portion of the market share.
- by Joshgo February 16, 2009 7:51 AM PST
- Again, I have to point out, most every argument here is slanted toward those who are serious movie watchers. Serious gamers need not apply. Gamefly more than has it covered.
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