Blockbuster Raises Prices Again: 3-Out Unlimited Plan Now $34.99

Many readers wrote in to complain about the latest Blockbuster price increase, effective December 27th.

Some of the price increases were modest: $9.99 to $11.99, $14.99 to $16.99, $17.99 to $19.99, and even $21.99 to $29.99, but the biggest increase was on the 3-out unlimited plan: $24.99 to $34.99.

I've been a member of Blockbuster Online since July 2006, where the 3-out plan cost $19.07 with tax. In September 2007 they raised the price to $26.49, and now they're raising the price of the 3-out unlimited by mail and in-store plan to $34.99. I'm a high-volume user, and I live 6 minutes from a Blockbuster so it's convenient for me to exchange movies at the store (it's next door to Trader Joe's). Since I also have Netflix (and Watch Instantly), I'm going to downgrade the Blockbuster account to the 2-out plan.

I went to downgrade my account, and they haven't updated the change subscription page with the new prices yet:

Is anyone on the 3-out unlimited online and in-store plan still paying $17.99? I'm wondering if the price increase is based on usage.

Do you subscribe to Blockbuster Online? What do you think of the price increase?

Thanks to Ron, John, John, Arul, Gowan, David, Nathan, Clara, Chris, S.M, Adam & Dave for sending this in.

I've posted the full text of the e- mail after the jump.

Hi Michael,

As a BLOCKBUSTER Total Access™ subscriber, it's always easy to have the right movie during this holiday season with more than 75,000 titles, including great new releases like Harry Potter and the Order of the Phoenix, The Bourne Ultimatum and Pirates of the Caribbean: At World's End.

We know that during this busy time of year the convenience of BLOCKBUSTER Total Access is especially important to you. Have your movies delivered right to your door. If you want new movies right away, exchange in-store*. And with free shipping both ways and no late fees, it's easy to enjoy all the movies you want for as long as you want.

To continue to bring you the unmatched convenience of both online and in-store DVD rentals, your monthly subscription fee will change from $24.99 to $34.99. This adjustment† will go into effect on your next billing cycle on or after December 27, 2007. The benefits of your subscription plan will remain the same.

And now check out blockbuster.com where you can view exclusive footage from The Great Debaters, the much anticipated new movie starring Denzel Washington that opens in theaters on Christmas Day. This is just another example of how BLOCKBUSTER® is working to bring you exciting new entertainment features.

There are plenty of long winter nights ahead, so make sure that your Queue is filled with all the movies you want to watch next including new movie releases coming in January 2008, such as 3:10 to Yuma, The Game Plan and Saw IV.

Thanks for continuing to be a BLOCKBUSTER Total Access subscriber. It truly is the best entertainment value out there.

BLOCKBUSTER

Comments

[S.M. Krause]

When our website covered this, a lot of my readers were pissed, I'm pissed. When Blockbuster KY Jelly's their customer and rapes them till they bleed, who's the winner? I sent an e-mail to BBO and told them I will be cancelling my account before the next bill date. At $34.99, it's going above and beyond. As a normal user, some rent 3-4 movies a week through the online. You would think there would be some savings, there is none. When a in-store Total Access pass is cheaper than the online, something is wrong. The in-store is $29.99 for two out a time, for as long as you want. I may consider that option or Netflix. Anyone who is a BBO member should pull out before you get raped more.

[MichaelS]

I too got this email today. I was on the 17.99 3 out at at time, and decided to do the bump up to 24.99 so I could do the unlimited exchange in store. I would usually do 3 dvds a week and exchange all my movies in store to get 6 movies a week, and $7 more was a big increase but I felt worth it. But the $10 increase is a slap in the face, to the loyal customers of Blockbuster. This should be the beginning of the end for Blockbuster.

As soon as the Netflix website is up, I am signing up with them. Get ready Netflix, expect to see your subscriptions jump in the next month.

[R. Ryan of Waipahu HI]

I just canceled my account few minutes ago, I started BBO when they had TA with free coupon for movies and games and stayed when they remove the coupon and raised their TA price on 3-out with unlimited exchange to $26.49. My next billing date is tomorrow 12-20 so I cancel it today. Honestly, $35 is just too pricey for their sevice. I have 3-out/unlimited and I view 6 disk a week, 3 mailed, 3 exchanges. I still got Netflix tho, well its 1-out so I will bump that to 3-out at the end of them month which is my next billing date for Netflix.

[Mr. X]

I received the email today. I was on a 4 out at $23.99 plan. They raised me to $34.99 for 4 out, so I canceled.

When I went to cancel, they offered me 3 out for $15.99, but no Total Access. I hit the cancel button.

[Mara Alexander]

After the price jump in September, with only 15 days notice, I downgraded my account from 3-out to 2-out (total access) and re-ignited my Netflix subscription (which I had canceled due to throttling, and I'm hardly a high-volume user).

Since September I've had both services, and Netflix is clearly the winner as far as selection and turn-around speed, the only thing it lacks is in-store exchange. The "Watch Now" option would be a good replacement...if they had decent movies.

I've been trying to decide whether to keep Blockbuster or not...and now this.

The part that frosts me the most is the EIGHT DAYS NOTICE. What kind of corporation does business like this??? The increases are bad enough, but the lack of notice is completely unacceptable.

[XVarX]

I am done with Blockbuster Total Access. I was on board with the previous price increase, it was and is a great value. Jumping up another 10 dollars after just four months is stupid. I'm not going to stick around and just accept that I'll get to see five or ten dollar price increases every three months.

I might have given this some consideration had they at least given more notice before the new price went into effect.

But this is just horrible business, and lately, I haven't been renting enough from Blockbuster to even make it worth the subscription fee.

[Anvil]

The funny thing is, I had *just* signed up a little more than a month ago and posted something on my own weblog about how, well, there were rough edges in the system but it was a good value and I enjoyed browsing the store again. And then they hit me with this ginormous rate increase. Smooth.

[phil]

All things considered, still great value. Blockbuster under the new management continues to add value with new and exclusive offerings with more to come.

[rjm]

Im pretty sure its usage based. I am still on the $17.99 unlimited plan and they are only bumping me to $19.99.

If I hadnt already bought a years Netflix in advance (at a discount) I might stay with them but I was planning on cancelling anyway.

Im sure the reason my rate hasnt gone up like many people is I dont think I have ever done 5 in store exchanges in a month. But the reps tell me that other people are cut off at 5. I just never got mine limited although I started to be careful not to go over 5 in fear that I would lose my unlimited. (But what good is unlimited if you never use it ?)

Plus, since I have NF, 6 at a time plus instore is more than I watch.

Im probably going to let my $17.99 (soon to be $19.99) unlimited go and cancel in the next few days.

Then maybe bump up NF to 4 at a time when my month rolls around. I may have to swap between 4 & 5 every other month at NF. But its still cheaper than paying 2 places.

NF hasnt really been throttling me like they used to but I think thats because my usage has been lighter having used both services for months now.

Another factor in my decision is a new $1 a night redbox at my local walmart neighborhood market.

If I get desparate for a movie that NF has a long wait on, I can try redbox.

Although really, the advantge on rentals by mail is not having to make special trips to the video store.

At about 7 miles round trip to either BB or walmart, thats over $1 JUST IN gas, and at least another 50 cents in wear & tear. (Even though I drive cheap cars)

Not to mention the wasted time.

I cant say Im surprised. Their old model didnt make much financial sense.

What I do wonder however, I know that 8-9 months ago or whenever I last cancelled bb, my store would still let me exchange for instore rentals even though I was no longer paying them. I suspect that loophole has been closed now.

[Leo]

I'm not altogether sure it's usage-based. At least, not for the lower plans. I'm on the 1-DVD/month, max. 2 per month and 2 in-store exchanges plan (in other words, 4 DVD's/month). The price went from the original $5.99 a year ago, to $7.99 four months ago, and is going to $9.99 next week! At $2.50 per movie it's not much better than just going to to the store.

[Adam]

I'd love to hear more on the usage-based angle on the price increase. If this ends up being the case, I'd expect to see a LOT of cancellations...

[Joe]

They just sent me a notice indicating the price was going from 24.99 to 34.99 for my 3-out unlimited store exchange plan as well. I IMMEDIATELY cancelled. This is a stab in the back to people who have been loyal to the service.

[David]

I don't think it's usage-based. I'm on the 2-out with 3 in-store exchanges (that's the plan that's going from 14.99 to 16.99). I rarely use my full 3 exchanges alloted to me. I reflexively almost canceled my account to go to Netflix, but then I remembered why I left Netflix (long turn-around times and shipment). I might just downgrade to the 2-out without in-store exchanges. But for me here's what still good about Blockbuster over Netflix. I have a BB store just down the block from me. I can throw my return mailers into their return box on the way to work. They usually get checked in that day; sometimes BBO will mail a new DVD by that same evening, which cuts at least a day off usual turn-around times. That make me want to stay with BBO.

As for TA. I think this might be its death-knell.

[Rich]

Come on two price increases in less then 6-months, that is a load of bull. I left netflix becasue of the ability to drop off in store, but 29.99+tax for 2-out a month is too much. Netflix is going to see a lot of people coming back. Not to mention they took away the free game rental coupon last time.

[Fred]

I also got the E-Mail guys and I have the 3 unlimited with unlimited store exchange. I live in NY and I take a 5 minute walk to the store to exchange my movies.

I watch 6 movies a week. Well, mostly series as Lost and Oz. Me and my wife enjoy watching series together so we have make it a habit of seeing at least 1 DVD a day.

At first I thought this E-Mail was directed to me due to my heavy usage and also because I saw no price changes in their website. But now I see that everyone has gotten that slap.

Give me a suggestion. I spoke to my wife about this and we really don't want to stop the service because it's still cheaper than buying. But I'm afraid of getting netflix because I'm a heavy user and I don't want to be throttled because Blockbuster did that to me once and it was a pain in the butt.

I'm thinking of getting 2 Netflix service because is a dollar cheaper and I'll save my time walking to the video store.

[Patty]

It may be based on how long you've been with them. I've been with them since the first days and I'm on the 3 out unlimited and they're raising me from 17.99 to 19.99 (but they say I'm getting a 34.99 value). I'm not a heavy user I think.

I was upset when I got the email given the short notice.

[gir]

Outrageous price increases till you have no takers - it's a strange way to go about eliminating a plan.

[Dennis]

I had the $14.99 2 out with Total Access and it is now going to $16.99. It is still worth it for me.

[dennis]

Interesting. I never knew about the 3 in-store exchange limit on the (old) $14.99 plan. I looked at my account online and it shows:
BLOCKBUSTER Total Access Premium $14.99 / month (plus taxes)
2 at-a-time, unlimited mailings
unlimited in-store movie exchanges
+1 FREE bonus Movie or Game Rental E-Coupon / Month

If they cut me down to 3 exchanges then I will cancel.

[Jason]

Got the same email from Blockbuster last night (December 20th) after three weeks of horrible service and I will definitely be cancelling. I am a heavy renter, as I rent for myself and my housemates.

While Blockbuster costs roughly the same as Netflix's 5-at-a-time deal, I thought I might squeeze a couple of extra rentals out of Blockbuster based upon the in-store exchange.

The first week of service was excellent. I received and returned two batches of three DVDs the first week to my local Blockbuster. Then an entire week passed before another DVD was sent out, even though they were logged as having been returned. Third week I get three DVDs and exchanged them. Three days later no new DVDs have been sent out.

In summation, between the DVDs mailed to me and my in-store exchanges I got 18 DVDs over the course of three weeks. Factor in the multiple drives to the store versus Netflix's return by mail, and I fail to see the added value.

[rjm]

I cant believe they are going to $9.99 for Leo with 2 by mail & 2 instore.

Thats no deal.

Doesnt NF have a cheaper plan with a limit of 4 ?

It sounds like they are trying to make the instore rentals more profitable.

I wonder if they are going to leave the by mail plan at $16.99 ?

If they raise it a few bux, would NF follow suit ?

That could be bad for everyone.

[astoworf1]

I'm going to stick with BBO one more month after the increase to see if the availability of titles improves any with their expected loss of business. I do the 3-out Total Access plan and generally watch 6 a week...even with the increase, it's still only about $1.45 each.

[mary]

i have been a loyal blockbuster customer for nearly 10 years but i did not sign up for the internet deal till late last year. i was happy with it until about june when the mailings were very slow. so i complained via email and did not get much response until i called in september when my coupons disappeared. i was on the 17.99 unlimited and got bumped to the 24.99 and lost my game coupon.my daughter signed up before me and still gets the coupon and all for just 17.99. i believe it is based on original sign up date. i will be switching to netflix if they don't back off on the $10 price increase. this essentially doubles my fees in less then 6 monthes.

[DJ]

I switched from Netflix to BB about a year ago. Netflix was throttling my account and BB was a much better deal. I usually get 6 DVDs by mail and 6 from the store every week. Occassionally, I may only get 10 instead of 12 movies a week. I guess this makes me a very heavy user. My plan is going from 24.99 to 34.99. This is the third rate hike since I switched to BB. I may cancel but have not yet decided. My shipments have slowed in the past 2 weeks but I chalk this up to the Post Office being extremely busy over Christmas. When I do the math, Average of 48 Movies a month for 34.99 equals .73 cents a movie where before it was about .52 cents per movie. I guess its still a good deal for me if I can continue to get 12 a week.

[beto]

I was already had plans to cancel my account at the end of this billing cycle, due to 50-60% of movies being in an unavailble status at all times. I'm not a light user, but wouldn't consider myself a heavy user either. I have the 2 out unlimited at stores and do 2 by mail and 2 at the store per week. With this second price increase, I'm defintely gone. I think I will try my luck with Redbox, since you can reserve from the website now.