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August 9, 2005 8:43 AM PDT

Blockbuster to raise online rental prices

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Blockbuster plans to raise its prices for online DVD rentals, putting it back in line with main rival Netflix.

The price of Blockbuster's three-movies-out-at-once rental plan will now be $17.99 per month, up from $14.99, the company said Tuesday. The new rate is the same that Netflix charges for three movies--the most it allows customers to have at a time.

Other Blockbuster plans will also cost more--five movies out will cost $29.99 per month and eight movies out will be $47.99 monthly, the company said. The new prices go into effect Aug. 19.

Blockbuster and Netflix currently dominate the DVD rental market. Amazon.com, which offers a movie rental service in the U.K., recently bought a DVD-on-demand site, fueling industry expectation that it plans to offer a rental service in the American market too.

Blockbuster's $17.99 price applies to new subscribers and anyone who signed up on or after March 1, 2005. Customers who subscribed for the service prior to March 1 were guaranteed the $14.99 rate through Jan. 31, 2006, the rental company said. All Blockbuster online customers can access a library of 40,000 titles and get two free in-store rentals per month, the company said.

The company said it has signed up 1 million members since its launch last August and hopes to double this number by March 2006. Blockbuster has 30 distribution centers and more than 200 stores that fill online orders, the company said.

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Late fees
by ajbright August 9, 2005 9:56 AM PDT
What I don't understand about Blockbuster is why their commercial is still allowed to air.

They do charge late fees, their commercial is deliberately deceptive, with small print flashing up that states that they add additional charges at point of sale that will be refunded if the movie is returned on time, but only if you ask for this to be done, otherwise it's late fees as normal.
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Not late fee
by tsm26 August 9, 2005 12:10 PM PDT
You purchase the movie after two weeks, and if you return it after that they just charge you a restocking fee. After that two weeks their system treats your movie as being sold and out of inventory. When you take it back they have to put it back into inventory and check for damage. They are actually being nice taking it back at all. Sorry, I just don't see the argument about it. It is like Columbia House or BMG, you have to return it within a couple of weeks or you have purchased it. You can return it after but they charge a restocking fee. Exact same concept.
Stores can set their policy
by poenkitten August 10, 2005 8:21 AM PDT
Individual Blockbuster stores can modify that agreement based on the demographics of their area. If they are in an area where they have to chase renters to get back the copies more than a certain percentage they can do what you are saying, charge a bit more and refund it when it is returned on time.

The Blockbuster I use, charges the normal fee, and prints on the ticket how much more to own the DVD after it is a week late. They will charge that amount to your Credit Card after they have called you and you have failed to return the DVD. If you return it after that charge is made, there is a 15% restocking fee but the balance is returned to you.
Nice alternative to cable/dish
by August 9, 2005 10:06 AM PDT
I've been using Blockbuster online for about a year now. For $15 bucks a month, we get to watch what we want, when we want, for as long as we want. Even when the rate goes to $17.99 next year, it will still be worth it. No cable or satellite TV at my house and a Terk antenna I installed in the attic works great for local channels.

The only thing I miss is the History and Discovery channels, but it's not worth the expense and quarterly rate hikes.
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Error in article
by tubedogg August 9, 2005 10:09 AM PDT
"The new rate is the same that Netflix charges for three movies--the most it allows customers to have at a time."

Is "it" in this sentence referring to Netflix or Blockbuster? Either way, it's wrong -- both Netflix and Blockbuster have plans that allow you to rent more movies at one time.

If you meant that _under the $17.99 plan_, three is "the most [Netflix] allows customers to have at a time", then fine, but it isn't worded clearly at all.
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Indeed
by halflinggray August 10, 2005 2:01 PM PDT
I was about to say the same thing, and since Netflix has a much better selection of movies that Blockbuster anyway here are all the options they have available which are equal to the prices blockbuster just put there prices to:

8 at-a-time (Unlimited) for $47.99
Unlimited rentals - up to 8 movies out at a time for a flat monthly fee of $47.99.

7 at-a-time (Unlimited) for $41.99
Unlimited rentals - up to 7 movies out at a time for a flat monthly fee of $41.99.

6 at-a-time (Unlimited) for $35.99
Unlimited rentals - up to 6 movies out at a time for a flat monthly fee of $35.99.

5 at-a-time (Unlimited) for $29.99
Unlimited rentals - up to 5 movies out at a time for a flat monthly fee of $29.99.

4 at-a-time (Unlimited) for $23.99
Unlimited rentals - up to 4 movies out at a time for a flat monthly fee of $23.99.

3 at-a-time (Unlimited) for $17.99
Unlimited rentals - up to 3 movies out at a time for a flat monthly fee of $17.99.

2 at-a-time (Unlimited) for $14.99
Unlimited rentals - up to 2 movies out at a time for a flat monthly fee of $14.99.

2 at-a-time (4 a month) for $11.99
Up to 4 rentals a month - up to 2 movies out at a time for a flat monthly fee of $11.99. Learn More.

1 at-a-time (Unlimited) for $9.99
Unlimited rentals - up to 1 movie out at a time for a flat monthly fee of $9.99.
HEADLINE: Blockbuster shot itself in the foot...
by fred dunn August 10, 2005 6:12 AM PDT
Blockbuster was and still is the biggest rip off in the market. They had their 15 minutes of fame and cornered the market for many years. They have now painted themselves into a corner and don't know what to do next.

One day someone will figure out something useful for all of those "brick and mortar" locations, maybe sell hamburgers. I'll take fries with that Gone with the Wind.
:)
Fred
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Online choices and In Store Rentals
by poenkitten August 10, 2005 8:40 AM PDT
As long as Blockbuster keeps the 2 free in store rentals per month they are going to stay ahead of the game and Netflix even with the rate hike.

Those 2 free rentals each month ensures that their customers can get the latest release when they want it at no additional cost. Now if they could get it down to registering that a DVD is on the way back to them by the postal scan and get out the next DVD in the queue then they will have a very hot commodity at any price.
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blockbuster scam
by pigeonnest April 15, 2006 5:20 PM PDT
Thats funny, when I signed up for blockbuster online, I was guaranteed the $14.99 rate "for life". Now there is a price increase! Now I can find no mention of the guaranteed for life rate. Now they say the $14.99 rate was guaranteed til Jan 1st 2006. I have sent blockbuster 3 emails regarding this issue on my account and it has been over 10 days with no response.
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