Blockbuster to get rid of late fees

[Guest Vitamin X]

Blockbuster to End Late Fees in 2005

 

DALLAS (Dec. 14) - Blockbuster Inc., the nation's biggest movie rental company, plans to eliminate late fees on games and movies as of Jan. 1.

 

But there is plenty of fine print, which suggests that Blockbuster is still struggling to come up with a formula to blunt the competitive threat from NetFlix and cable operators' movies on demand offerings.

 

Its shares rose 16 cents, or 1.8 percent, to $8.96 in late morning trading on the New York Stock Exchange - near the lower end of its 52-week trading range of $6.50 to $19.37.

 

Blockbuster announced Tuesday it will continue to set due dates, with one week for games and two days or one week for movies. But the company will give customers a one-week grace period at no additional charge, starting on New Year's Day.

 

Renters who keep the movies or games longer than the grace period will be charged for purchasing the DVD or tape, Blockbuster said. Customers will still be allowed to return the movie or game over the next 30 days for a refund of the purchase price but will be charged a ''minimal'' restocking fee, the company said.

 

''Doing away with late fees is the biggest and most important customer benefit we've ever offered in our company's history,'' John Antioco, Blockbuster Inc. chairman and chief executive, said in a prepared statement. ''So as of the first of the year, if our customers need an extra day or two with their movies and games, they can take it.''

 

Officials of the Dallas-based company also said Tuesday they expect continued softness in the rental industry and flat operating income in 2005 compared with this year before the estimated $50 million costs of marketing and implementing the late-fee elimination policy.

 

Blockbuster said it has tested the new program in some markets and found increased rental transactions and retail sales offset the decline in revenue resulting from eliminating late fees.

 

For the full year 2005, the Company projects that late fees would have contributed approximately $250 to $300 million to operating income. But it said that is expected to be offset by growth in revenues due to increased store traffic, less promotional and marketing activity and an increased focus on operating expense management.

 

Blockbuster has more than 4,500 company-operated and participating franchised stores in the United States.

 

Man, I'm so glad I don't work there anymore. Not only did they buy out the company I jumped ship for initially (Hollywood Video, where I only worked about a month or so before realizing WHY they were #2), but now they're throwing away one of their main sources of revenue. Insanity. It would probably be easier to deal with the customers though, although I'm sure they'll still find a way to return movies late as a result. People always push their limits, and it's going to be even worse if they're going to get charged for buying the movie or game instead of just a simple $5 charge.

[Guest Phenom]

 

(Hallelujah Chorus plays)

[godthedog 0]

i could give a shit about the late fees. the problem is their horrid selection.

[The Mandarin 0]

Of course this comes after I ring up a massive late fee for completely forgetting my rentals of several movies over last weekend.

[Guest The Shadow Behind You]

Great; so when there's a movie I really want to rent and the local libary and 'Net doesn't have it available I have to hope the prick who has it rented has the decency to return it at the due date?

 

All this means is people can hog the dvds longer and fuck them up even more.

 

I hate this stupid ass idea. If you can't return shit on time don't rent it.

 

I use Icontrol anyways but the principle here telling the renters who bother to return shit on time here is "Sorry, the lazy people are more important then you. Sorry about the extended delay for the one copy of Fight Club we have. How about you rent Mona Lisa. As you can see, we have a LARGE quanity of that movie on the shelves for your viewing pleasure".

[Damaramu 0]

I agree with Shadow. This means that I don't know when those assholes that keep things way to long will be bringing them back. I can probably assume a 2 week rental on anything that's new or hot.

[Guest El Satanico]

How does this help them compete with Netflix? If they want to compete with Netflix, shouldn't they start a monthly program similar to Netflix.

[spman 0]

As it is, Blockbuster only gets about 15-20 copies of most new releases, anytime I ever go there, the selection is always slim pickings. I remember I was there a few weeks ago hoping to rent Eternal Sunshine of the Spotless Mind. Of course, all five copies they had were out, as was just about everything else worth renting. I ended up renting "Envy" with Jakc Black and Ben Stiller

 

I haven't rented games from them in years, but if it's still like I remember, they get three or four copies of every game, and after being rented out a few times they're scratched to hell and won't even play anymore.

[Guest The Shadow Behind You]

How hard is it cover the dvds? My old Movie Gallery did this before Mono...Blockbuster brought it out.

[Guest Failed Mascot]

In the summer of 1999 I went into Blockbuster to rent a videogame. I brought it up to the counter and was readying myself to pay for it when this fat and butch lesbian told me there were late-fees on the card. After finding out it was for something that was returned the day after picking it up we got into a huge arguement and I wasn't allowed to get the game. I called my mother since it was her card and I was only 17 at the time and she came down. My mother calmly tried going over the situation with the woman but the woman started yelling at her and everything. My mother proceeded to throw the Blockbuster card at her and then ping her in the shoulder with the game I wanted to rent while saying "Fuck you, we'll never rent a thing from here again.". We never did either.

 

Basically all video renting companies can go fuck themself. If you have digital cable then you can rent the movie you want whenever you want for 24hrs. You can then record it too if ya want and it only costs $3-5 depending on if its new or not.

 

Rental places are only good for their used DVD and Videogame specials. Blockbuster will have buy 2 get 1 free or 2 for $20 deals on DVDs for example.

[starvenger 0]

Not only did they buy out the company I jumped ship for initially (Hollywood Video, where I only worked about a month or so before realizing WHY they were #2), but now they're throwing away one of their main sources of revenue.

To be honest, the Hollywood Video around my neighbourhood is miles better than the 20-or-so Blockbusters in the same vicinity, but that may just be an isolated case.

[spman 0]

Basically all video renting companies can go fuck themself. If you have digital cable then you can rent the movie you want whenever you want for 24hrs. You can then record it too if ya want and it only costs $3-5 depending on if its new or not.

 

That's all well and good, but if you really want to see a movie, you'd have to wait an additional month or so before it's available on PPV.

[Guest The Shadow Behind You]

not really.

 

Eternal Sunshine was on demand the same time it was released to dvd.

[Guest Failed Mascot]

If you could wait for it to come out on DVD then what's another month? Unless you plan on buying the DVD I don't see a big deal with another month of waiting.

[Special K 0]

I don't give a shit because I have:

 

Scarecrow Video

 

The fucking greatest video store in the nation.

[jimmy no nose 0]

My local video store doesn't charge late fees. I thought there had to be some way they get you, but once I had a video 3 days late and I just brought it down and they didnt even say anything. I know people who've gone like 3 weeks late and nothing happens. They just call you more and more often the later it is. Pretty cool, but I don't understand why they do it.

[Slayer 0]

I would be one of the assholes to take advantage of this.... if I could ever actually rent something I wanted from there

[DMann2003 0]

There's only 1 Blockbuster in my area that's worth a damn. Because most Blockbuster's and Hollywood's seem convinced that the only copies worth stocking of a film are the "full screen". Not this Blockbuster, widescreen all around. I swear it's an anomolly in video rental chain stores.

[MarvinisaLunatic 0]

I do blockbuster Online. 3 DVDs out plus 2 free instore rentals (i use them to rent games for a week that normally cost $6) for $18. They just changed the distribution center from NC to MD (instate for me) and Im getting movies faster now. I estimate in 3 months since I've had the service I've gotten about 35 movies. 12 movies a month x $5 a rental = $60 worth of movie rentals + $12 worth of game rentals = $72 worth of rentals for $18. Other people complain they aren't getting enough movies out and how its slow, but I see what Im getting as a really good deal.

 

As for the no more late fees...they probably won't have any video games since its essentially 2 weeks now instead of 1 week. Which makes my 2 free rentals from the online rental service even better...

 

And I wonder..how much would Blockbuster charge to buy a game? Because a lot of people who rent games before they buy them would have incentive not to return it and outright buy it if the game was priced comparibly to retail ($50 - $6 rental fee instead of $50 + $6 rental fee)...and if a person decides to buy the movie/game..do they get the box?

[MarvinisaLunatic 0]

There's only 1 Blockbuster in my area that's worth a damn.  Because most Blockbuster's and Hollywood's seem convinced that the only copies worth stocking of a film are the "full screen".  Not this Blockbuster, widescreen all around.  I swear it's an anomolly in video rental chain stores.

My Blockbuster has a homemade "WHY SHOULD YOU CHOSE WIDESCREEN OVER FULL SCREEN" poster with similar screencaps of movies in both formats that get posted on here every time we have the WS vs FS debate, to show the idiots that still chose full screen why it sucks. They carry about 80:20 in favor of Widescreen but most of the time all the FS versions are gone....

[Guest Vitamin X]

Not only did they buy out the company I jumped ship for initially (Hollywood Video, where I only worked about a month or so before realizing WHY they were #2), but now they're throwing away one of their main sources of revenue.

To be honest, the Hollywood Video around my neighbourhood is miles better than the 20-or-so Blockbusters in the same vicinity, but that may just be an isolated case.

Well, the main reason I say that is because in the way it was run. FAR more efficient at Blockbuster, and I would know, since I worked at 5 different ones in the 13 months I was there (2 in Miami, and 3 in North L.A.), and the one Hollywood Video I worked at in Miami was run dirt-poor, and they didn't even have 1/3 of the customers that any of the Blockbusters had. And they paid jackshit, too. I was getting paid $6.50/hr being the assistant manager, a position which has a ridiculous amount of responsibility in running the store, whereas I was getting $8.58 at Blockbuster for being just below that (Shift Leader/Manager on Duty).

 

Basically all video renting companies can go fuck themself. If you have digital cable then you can rent the movie you want whenever you want for 24hrs. You can then record it too if ya want and it only costs $3-5 depending on if its new or not.

 

Yeah, inDemand's not that great. I'm a big fan of Netflix myself. I <3 the selection. Blockbuster has the exact same service (Blockbuster Online) with the additional bonus that you also get 2 free rentals (new or old) at the stores with it... which is okay, but part of the reason I hate going to Blockbuster as a customer is it's extremely inconvenient for me, especially compared to Netflix. All I have to do to return movies is drop them off at the mailbox. Only thing that sucks is how long it takes to receive a movie, in which case the 2 free rentals come pretty handy, but still I feel disgusted going into my local Blockbuster seeing these slow, rude employees and knowing I did a WAY better job than they could ever hope to do and having to put up with their ineptitude.

 

Also, I've taken to not renting games out anymore. I just look for great deals and buy them, if I don't like it I'll sell it on eBay or half.com. None of the rental chains are good with video games, they've really gotten the shaft since the SNES days.

[Nevermortal 0]

Shit like this makes me LOVE my Netflix.

[starvenger 0]

There's only 1 Blockbuster in my area that's worth a damn.  Because most Blockbuster's and Hollywood's seem convinced that the only copies worth stocking of a film are the "full screen".  Not this Blockbuster, widescreen all around.  I swear it's an anomolly in video rental chain stores.

My Blockbuster has a homemade "WHY SHOULD YOU CHOSE WIDESCREEN OVER FULL SCREEN" poster with similar screencaps of movies in both formats that get posted on here every time we have the WS vs FS debate, to show the idiots that still chose full screen why it sucks. They carry about 80:20 in favor of Widescreen but most of the time all the FS versions are gone....

I think it depends on the regional manager, because none of the Blockbusters in my area (Med Center Houston) have widescreen comedies, and the Hollywood Video carries widescreen as much as possible.

[Guest Cerebus]

My mother proceeded to throw the Blockbuster card at her and then ping her in the shoulder with the game I wanted to rent while saying "Fuck you, we'll never rent a thing from here again."

Your mom sounds really hot.

[SamoaRowe 0]

This would've helped me out several months ago. I rented the movie "Identity" and this was during a time where I had just had a trial month of Netflix end and I'd been buying a lot of dvds. About a week and a half went by and i was reorganizing my dvd collection when I stumbled onto Identity and realized that what I had done.

 

So I paid four dollars and continued on with my life.

 

Basically there are still late fees at Blockbuster, they just give you a bigger window but will charge you more if you are stupid enough not to return it.

[the max 0]

Just was late in returning Spiderman 2 and Dodgeball, which I can only imagine how fucking much those three days rang up in late fees.

 

I'm considering joining Netflix now.

[kkktookmybabyaway 0]

I love how people bitch about late fees when they wouldn't have to pay any if, you know, they turned them in on time.

 

I just buy DVD's now instead of renting. I figure if I buy something I don't like I could sell it and only lost a few dollars out of it all...