Blockbuster Moving Unlimited Users to Limited Plans

Joe sent in an e-mail he received from Blockbuster, informing him that his 3-out plan will now be limited to 5 movie exchanges per month:

Dear Joseph,

We hope you're enjoying BLOCKBUSTER Total Access™!

There are some changes to our subscription plan lineup that introduce a new pricing structure and new plans which limit the number of in-store exchanges.

As a result, your current plan will no be longer be available at the current price.

(Unlimited DVDs up to 3 at a time with unlimited in-store exchanges each month for $17.99)

We'd like to extend you a new plan that includes Unlimited DVDs 3 at a time plus up to 5 free* in-store exchanges for $17.99. Looking at your recent activity, we notice you only average 4 in-store exchanges each month, so this new plan should give you all the in-store rentals you need.

In addition, on August 1, we will be introducing discounted in-store movie rentals for any additional movies you might need above the in-store exchanges included in your plan.

Your new plan will go into effect on your regular monthly billing date following August 30, 2007. If we don't hear from you by August 30, 2007, we will automatically move you to the new BLOCKBUSTER Total Access plan referenced below as "Your New Plan".

It looks like Blockbuster will be moving customers to the limited plans as fast as possible, due to the high cost of unlimited in-store exchanges.

Has anyone else received a similar e-mail from Blockbuster?

Comments

[phildawg]

check this out over on the ihateblockbuster.com forums:

As for the Grandfathered-In customers...according the the communications report, if I remember correctly, it said the MAJORITY of TA customers will be GF'd in, but not all. I'm wondering what the criteria for this is going to be?

As for the customers not being grandfathered in... According to my DM, the customers who do not spend any money ever and are in the store several times a week exchanging are considered " not profitable" and will have their service plan changed. She said the change will affect 25% of TA customers.

[hueristix]

the prophecy of netflix management is coming true.

[Chris]

I kind of wished that Blockbuster kept the unlimited plan for longer. Not because I like Blockbuster, quite the contrary, because I knew that they were loosing A LOT of money by offering it. Oh well, I do enjoy seeing a megacorporation hemorrhaging money to try and take down a better alternative, and then failing. And us Netflix users still get to benefit with lower monthly fees. Competition at its greatest!

Hopefully consumers will go with Netflix's "Watch Now" over Blockbusters in-store exchange. If you watch movies with an average length of 2-hours, the $16.99 Netflix plan would give you about 8 "Watch Now" movies. With Blockbuster, the dollar more plan would only give you 5, and you still have to drive them back to the store later!

Now if only Netflix would give us Mac users "Watch Now" access!!!!

[phildawg]

that is an excellent point on comparison with the 5 instore rentals and 8 watch now. This would actually be enough incentive for me to swap back to netflix if I could figure out exactly what would prevent me from being throttled. I guess if I only rented new releases and didn't take any extras on the slow weeks, (there's about 6-9 new releases a month worth renting), do you think I would still be throttled? I was an early netflix subscriber back when they had about 1 million subscribers (2001ish?) and when I could avoid throttling, I swapped to blockbuster, TA was always just a bonus.

[willbueche]

Joe, can you check to see whether your account, when you sign in and look at your current subscription plan, says "Premium"?

Some have noticed that the word "Premium" now appears, and it is a hope that this word is an indication of the grandfathered status. But if Joe has the word "Premium" and yet still received that letter, then this means the presence of the word "Premium" is not an accurate indication of whether one has been grandfathered in.

I hope I've bought enough Twizzlers to make me worth keeping.

[XVarX]

My e-mail was completely different. Where the first two notifications I've seen posted here so far state an intent to automatically move people to a new plan, mine simply states they won't be renewing me if I take no action.

It looks like they have different criteria for which message they send to customers. The first two I've seen are for those they -want- to keep one way or another. Mine suggests they don't make anything off me, and would not mind having me drop their service.

Can't blame them, if they're not making money off me, there is no need to try keeping my business.

Here is the e-mail I was sent Monday:
=====

Dear xxxxxxx,

We have introduced a new pricing structure for our lineup of subscription plans.

As a result, the price of your current monthly plan Unlimited DVDs up to 3 at a time with unlimited in-store exchanges each month for $17.99 will increase to $24.99, effective August 1, 2007.

We will not automatically renew your subscription on your next billing date.

If you choose to continue, please select a new plan.

Move to BLOCKBUSTER Total Access™ Plan that includes Unlimited DVDs up to 2 at a time with unlimited in-store exchanges each month for $21.99/month
Option 1
OR

Unlimited DVDs 3 at a time plus up to 5 free* in-store exchanges for $17.99/month
Option 2
OR

See other subscription plans
See Other Plans

We appreciate your business and hope to continue meeting your movie and game rental needs at one of our neighborhood BLOCKBUSTER® stores.

Thanks for trying blockbuster.com!

Please contact us at http://www.blockbuster.com if you have any questions or concerns.

[XVarX]

"We appreciate your business and hope to continue meeting your movie and game rental needs at one of our neighborhood BLOCKBUSTER® stores.

Thanks for trying blockbuster.com!"

Now that I've re-read that part again, that's definitely a send-off. I noticed that they didn't say they hope to keep my business as far as online service goes, but rather through their retail location.

[darkbros]

I've been a member since Jan 2005.
I got a letter telling me that I can keep my 3 @ time plan
at the current $17.99 a month,
but I would be downgraded to the 5 only in store exchanges.

I was then told If I wanted I could upgrade to $24.99 just to keep the plan as it
was originally!!!

Some grandfathering!!!

My main problem with this is that EVERY new release I put in my queue goes automatically
to Short WAIT on Tuesday. I'm forced to use TA to go to the store just to get NEW stuff.
Online the only things I can get are TV shows, Anime, and Foriegn/Catalog.

I will probably cut my plan back, and just start using Redbox to get my new releases.
But if I do that, then I can see cutting down to a BBBM plan, at around $8.99.

BB won't get much profit if all existing TA customers do this....

[FredFredrickson]

Ok, I've been grandfathered in, and mine says "BLOCKBUSTER Total Access Premium"

Also- FYI, My usage for the past few months has been incredibly low (busy mostly). I have barely been able to turn over 4 dvds in the past 2 months on the 3 out unlimited plan. (although before that I was turning them out like a machine!)

Is it possible that it's related? Can we get an account of who was grandfathered VS their usage? That would be interesting. I'm assuming I was grandfathered cause I am not renting much at all...

[gir]

Also, it'd be interesting to see what they do if a grandfathered light user starts using the service heavily.

[aussieguy]

Yes it seems if you are a heavy user they are going to jack up the price to $24.99.

What an awful way to do business. Glad I am not a shareholder. They should have originally charged an appropriate rate instead of baiting and switching.

Wonder what the cost of goodwill is?

[CJ]

This stuff is starting to sound like cell phone plans in its complexity!

Apparently I'm still a Premium customer who gets 4 at-a-time with unlimited store exchanges for $23.99. Or at least until Aug 24, when the next billing cycle begins. And BB makes absolutely zero money off me at the store. Plus I do the "new-release-exchange" game every week, so I'm pushing big monthly turnover store exchange volumes.

So you can just bet I'm going to get a "BB letter", probably right before Aug 24, which is when I'm on vacation out of the country. Curiosity is killing me to see what the BB offer will be, and for how much ...

[gir]

And if they are offering TA Premium only to light users, that'd be a bit disingenuous - leaves a sour taste with everyone, even those who "benefit". Not to mention giving everyone the impression they think we're all fools.

[Rowdydog]

I haven't received any message from them as yet, but I did send them an email through their website asking if those who were already members at the 3 out-unlimited in-store exchange level of $17.99 would remain at that level or be automatically bumped to the $24.99. They responded by telling me they could not help me with my inquiry and suggested I call their 800 number (which I've not had time to do yet).

I've only been a member for a little over a month. My exchanges have been heavy since I have been catching up on movies I've not been able to see. There's nothing worth watching on TV right now anyway.

I'm wondering if they will want me to switch to the higher priced level. If so, I will likely cancel. I like the service, but I don't like having it change from what was advertised within a month or so of joining.

[frank]

Here is an email I got from them after asking to be put on the preferred customer lists and grandfathered

.....we considered a number of factors related to online memberships including in-store activity on a given account. We’re giving our most frequent renters like yourself the option of either continuing with limited in-store exchanges at a the same price point or moving to a new plan if you'd like to continue your unlimited exchanges and agree to a higher price point......If you make no changes online or we don't hear from you, please remember that the changes mentioned will take effect on your regular monthly billing date following August 30th, 2007.

It seems to say that because changes won't take place until after billing dates of Aug 30th that I have until Sept 20th at the old prices. Since I get billed on the 20th.

Since I reduce usage in the fall, the only reason to keep my account(at least at my level) was to stay grandfathered. So I will cancel when it gets raised. Go back to Netflix till I get throttled and then probably get a reduced Blockbuster plan. I think Blockbuster still gives better value, because they do not throttle as bad and you do get the 5.

Five in store exchanges would have been considered great only a little over a year ago. I am just a little mad at how they handled it.

But is the 5 in store exchanges much different then when they gave the weekly in store coupons?

[Old Timer Too]

I was unhappy when they dropped the 8-out programs and, after talking with them, opened a second account so that I could work my way through my queue (I also have a lot of time available). I also do some in-store exchanges and do purchase titles once they become excess, so there is a fair amount of activity on my account. While I am sure I cost them $$ overall, I still represent a fair amount of business.

If they did not continue to provide me with four-out at a time, I would be calling and complaining long and hard, even to the point of making it known that I am their customer with all that goes along with that.

That tactic didn't work with NF and their ultimate rudeness drove me away. If you want to advertise unlimited, then there is nothing that you should do to limit that status. And yet, that's exactly what NF did and to me, that is not only dishonest, it constitutes fraud and is in violation of false advertising laws. They lost a Class Action lawsuit (though they have yet to settle) and no longer push the "unlimited" concept.

BB's total access program was a bonus, but it isn't critical to me staying with them. It simply means that I won't be visiting the stores as often and possibly not even buying used films from them.

If they drop me back to 3 at a time, now that just might be the last straw. Pricing isn't all that critical.

No, I haven't seen any correspondence and I suspect with two accounts, I suspect they aren't quite sure what they are going to do... unless they haven't figured out what price to provide us 4-out (times two) users.

[Smits]

I have been on 4 out w/ unlimited exchanges at BB. I was offered 4 out unlimited with no store exchanges for $22.99 (w/ one coupon)...
Works well for me because of no store near my home since they closed them. I combine this with 4 out at NF, and I get best of both worlds.

[domc]

Looks like I'm a "grandfathered in" renter but I will never go back to Netflix because of throttling. Until blockbuster starts limiting my renting, I'll not look netflix.

Netflix must be getting a little afraid. They sent me a flyer in the mail with there usual deals asking me to come back. I've been gone a little over year. Must be because of there last quarter profit loss. I've not heard anything from them till now. Not even an email. Probably cuz I'm a heavy user/renter.

[joebarcode]

I sent in the above email to Mike. I was listed as a Total Access Premium member.

My usage level was about 6 movies/month, although that fluctuated from 11 one month to 2 the following month. I almost always exchanged the movie at Blockbuster rather than mailing it in (so figure another 6 rentals per month from the store), plus used my coupon every month. In the 15 months that I've been a BBO member, I've never spent a dime at the store: the only movies I rented were coupons and exchanges. I think I was a textbook unprofitable customer :)

That being said, BBO hasn't exactly been a model vendor. I routinely get the 12th, 13th, 15th movie in my queue and the store selection is pretty mediocre. I almost always rented older movies (seven day rentals) which were just sitting on the shelf anyway.

I cancelled my BB membership within 15 minutes of receiving the email. At least with Netflix I receive my first choice 99% of the time and I really don't want to bother tracking if I'm returning my fifth movie of the month or my sixth.

I enjoyed it while it lasted; I hope the people who are grandfathered in enjoy it while it lasts, as I think they will continue to lower the bar on the unlimited rentals until it turns profitable, or at least loses less money.

[FredFredrickson]

Yeah, that's annoying. I had my movies in the order I wanted to receive them. And part of that was because the movies I was renting were sequels. They sent them out of order, and so I couldn't watch any of them before seeing the first! So i had to return unwatched movies to free up my queue so they'd send the first in the series, and now I have to re-rent the 2nd and 3rd.

This only happened because they're independent movies. With tv series, they group them together, and I've never had a problem with them sending those out of order. but with movies, they don't assume you're watching them in order for any particular reason.. except they should note the same movie title with a "2" after it, and a "3". Or they could just respect the order I have my queue in.

[xoxo]

All I have to say about this is that Blockbuster is proving to me what I always thought and knew about this company. Very slimy. The more reasons why Netflix will always be better, and have more class. Slimy Blockbuster couldn't even grandfather their previous employees because they are so money hungry. Where is the customer service??? Oh wait, THERE IS NONE.
Come on darlings, move on to Netflix like I have been for years. I don't recognize blockbuster as a rental company at all. We'll only see the statements for Q3 which company is better. I can't wait.

[claming]

Well, Blockbuster is losing money on subs who frequently make the instore exchanges. And as I understand it there is no "grandfathering". They are doing some kind of case by case evaluation.

[Hunter McDaniel]

I have to say, BB's process for deciding who gets the low rate seems a lot closer to outright "throttling" than does the shipping priority algorithm that Netflix takes so much grief about.

[Eric]

before you bash Blockbuster to hell. remember that your beloved netflix raised the 3 out at a time to 21.99 before they had competition. Don't think they wont do that again if BB is out of the action.

[leonardodicrapio]

"remember that your beloved netflix raised the 3 out at a time to 21.99 before they had competition."

according to you, wal-mart wasn't competition for netflix (well wal-mart didn't turn out to be much competition for netflix but i think it would be a stretch to say wal-mart didn't provide netflix with any competition). wal-mart had a 4-out plan for $21.94. and wal-mart's 3-out plan was $18.76.