Blockbuster Tries To Reverse Late Fee Anger

The Boston Globe is running a story about how the local Blockbuster stores are lowering late fees and are offering amnesty to those with late fee balances, hoping to keep angry customers from defecting to Netflix or video-on-demand.

Interesting tidbit from the story:

Blockbuster is also offering a one-time amnesty to Boston area customers with late-fee balances to coax them back into its stores. Company officials won't say how many of these customers there are, but Martin says the number is considerable. Based on his experience in Providence with an earlier amnesty test, Martin said the amnesty should convert about 500 inactive customers to active status at a cost of about $12,000 in waived fees per store, or about $1.3 million for all 110 Boston stores. The Boston amnesty program runs through Aug. 22.

Thanks to Mark for sending this in.