Blockbuster Online Drops Low-End Plans

Video Business is reporting that Blockbuster Online has dropped the $5.99 and $7.99 plans. Blockbuster Online plans now start at $9.99 per month for one movie at a time.

Video Business also tried to confirm details of the Blockbuster Total Access program, which is expected to launch next week and enable customers to exchange online rentals for in-store movies.

Under the online/in-store model, subscribers can return a movie they rented through the online system to a bricks-and-mortar Blockbuster store in a sealed return envelope. The customer might then receive a free in-store rental, subject to normal in-store rental rules, including no late fees.

This allows the Blockbuster Online subscriber the option of getting a new movie the same day they return it, instead of waiting for a new one to be mailed.

Comments

[type-cast]

I just don't get the rationale for this. Why not just give people a free coupon for every movie they send out? It would have the exact same result. How do they plan to make money, unless they can save on postage somehow?

[usermonster]

They probably can save on postage by shipping the DVDs from the stores in bulk. I'm sure they crunched the numbers on this, but it does seem too good to be true.

[moviejunkie]

How could this not be a win-win? It sounds like each time I have a DVD to return, I can take it to the store, get a free rent, they check the DVD in, they mail it and the next DVD from my queue! ALL for the same price!

IF this is all true, I'll drop netflix for sure and just keep BB. What am I missing here? If you don't live near a store, that sucks, but for the most part I say they really thought this through.

[noe638]

I think this would be a good structure if they had more offerings in the store that people actually purchase (or maybe they do). It would seem the foot traffic would only be good if they could eliminate postage or increase the sale of more non-movie items, video games, etc.

BB may be rearranging deck chairs on the titanic.

[dipnfalls]

From what my manager at my Blockbuster said, is that they are almost tripling the stock on new releases since the past two weeks. He used "Click" as a example, he said he was originally supposed to get like 55 copies of it on the shelf but instead since this announcement that they got in 180 copies in anticipation of more new releases going to be on demand with this new program.....All I know is that usually if you are not there the DAY new releases come out at my store you dont get them for atleast a week. But yesterday there was plenty of copies of "Click", "The Break=Up" and "The Omen" on the shelfs. So if this a sign, then this could all work. Who knows though.

[netflix_is_great]

is there any limit or is every envelope a free instore rental?

and you can keep instore rentals a month? for a buck?

power users are going to have a field day

lol

[Rusty Ramrod]

For someone like me who drives right past a BB everyday, this new program is the sh*t.

It eliminates the send-back throttling and should provide for close to 80 rentals a month, based on a 2 day delivery cycle on the 3-out plan.

The only down side is the possibility of exhausting all the local DVD choices, but that should take a long time.

I am very excited about this program. It will allow me to rent DVD's I previously would not have.

Also, I did verify it starts on the 24th here locally and for every DVD you bring in ready to ship, they give you an in-store rental at no charge.

[netflix_is_great]

i am having trouble figuring out how blockbuster plans to make money doing this

doing away with late fees.........
now flooding the stores with freebees
whats next???
the onion wasnt so far off the mark!!!

[Howard]

>From what my manager at my Blockbuster said, is that they are almost tripling the stock on new releases since the past two weeks.<

I can vouch that my local store has been doing so since June, when they had 21 copies of the Steven Segal film Shadow Man.

[type-cast]

This program will decimate the selection of older movies. The shelves are already empty, with the two-week rentals. Nothing in order. Pretty soon, there won't be anything in the stores. It's a bonanza for heavy users. They can watch twice as many movies. However, it won't be worth much if the stores can't meet demand. In my experience, they are straining to keep up already. I think this will be the final straw and drag the whole chain under.

[Bogarts_Falcon]

"and you can keep instore rentals a month? for a buck?"

No. The DVD's that you get from your local Blockbuster must be returned within the guidelines as if you had paid for the store rental. You also must have an account established to rent locally.

[BoB]

Or your stores will all be franchised like mine are they WILL NOT participate in this, so its just another "so-what" for people like me.

[Mike_K]

There are two catches in this seemingly great deal.

1. The rental you get from the store must be returned to the store

2. The checkout-time in your returned online-dvd is about atleast 2 business days

So do the math

[aussieguy]

So let me get this straight.....Blockbuster saves a bundle on postage and its customers get a rip-roaring deal. What the deuce?

Bye bye Netflix.

[Mike_K]

Here is the link for everyone to see about it

http://www.blockbuster.com/homepages/displayPage.action?channel1=TotalAccess&channel2=main&nav=false

[aussieguy]

Thanks Mike K. for that link. Now all is clear. When you return your online movies to the store they will not clear your Q automatically. The blockbuster store will hold those movies for up to 2 days and ship them all in one big load back to blockbuster online for processing (got this from the "please allow 2 extra days to receive your next bb online movie" statement).

This way blockbuster online saves the maximum on postage. So realistically you should be able to get double what you normally would not the 5-6 times estimates some have been throwing around.

Still a nice deal. Suddenly Netflix only feels like half a service.

[moviejunkie]

Why do you yahoos care if BB is going to make money or not. Quit trying to find something wrong with it. The way I read the above from Mike K. is that the DVDs WILL check in at the store and that will release your next movie in queue to ship, thus the 2 days. I'm psyched. It'll be interesting to let these two video giants slug it out. The customers' are the winners....in this round!

[type-cast]

"2. The checkout-time in your returned online-dvd is about atleast 2 business days"

They said "up to 2 days." I think that means they might take one day to check it in, plus you already wait up to a day for the next to be sent. This will reduce their selection to nothing. Hollywood Video is better. They let you keep things 5 days and they don't try to sell off their inventory. You are 2-3 times more likely to find a movie at Hollywood, in my experience. Even if Blockbuster has found some way to make money off this, I think the customers will suffer in the end. Especially the movie buffs who care about more than new release garbage.

[dipnfalls]

This 2 day turnaround thing as me confused...

From what my store manager told me. They will scan the movie in when I hand it to them, then the online queue will automaticly mark it down as returned to them and release my movie that is next in line to me on the queue, even though they physcially dont have it back yet as in the distro center. By the 2 day turn around do they just mean the 2 days it takes those lazy asses to send the new movie from my queue out that blockbuster always had? If so then no biggie....Basiclly the ship from time is still the same crappy time its been for the past year - 2 days but now eliminates the same crappy 2 days ship to time that they used to, which always made Netflix better for me, the 1 day turn arounds.

[Rusty Ramrod]

http://www.videobusiness.com/index.asp?layout=article&articleid=CA6382793

[netflix_is_great]

what are the precise rules for blockbuster store rentals now

isnt there still something that you can return it on time or..

actually keep a movie for a month and only pay a dollar restocking fee or something like that?

[netflix_is_great]

launch is being delayed till nov first according to the discussion at....

http://www.ihateblockbuster.com/forum/showthread.php?t=6614

[Mike_K]

This program I agree is equivalent of a financial harakiri for BBI.

Enjoy it while it lasts people.

[gir]

I have to admit, I'm curious to see how this pans out.

Will use be limited enough that they can carry the load? Will the program attract every heavy user in the universe? How long till they change the terms? Will the change be drastic? Will they just drop it altogether?

[aussieguy]

OK from the link to blockbuster it states:

"Enjoy your in-store movie. Please allow up to two EXTRA business days to receive your next set of DVDs from Blockbuster Online."

This implies a wait time of two extra business days in addition to the two day turnaround most people already experience.

If your online movies get checked in instore and clear your Q instantaneously then blockbuster online would have to stock way more DVDs to meet demand. If they don't clear your Q automatically and istantaneously but only when the distro center receives the physical disc then they only need to stock a few more movies instore.

This would indeed be profitable to BB as they save a bundle on postage. Maybe I am reading this wrong tho and clearly BB management is very capable of making bad decisions. Have to wait and see I guess.