f13.net

http://money.cnn.com/2004/12/14/news/midcaps/blockbuster_latefees/index.htm?cnn=yes

I wonder how this will affect the rental market - the biggest B&M dropping late fees and going with a stupid system wherein people get a week grace period (instead of being charged late fees) if they don't return the movie on time.  If they don't return it before that extra week is up, they effectively purchase the movie.

Is this a valid strategy or their last gasp?

It depends on how they price the movie...

If they price it as a used movie which sell usually around $10 each at Hollywood Video then effectively the late charge would be around $6 but you keep the movie.

That's better than the old system of $4 rental + $4 late fee = nothing.


If on the other hand they price it as a new movie at $20 then the system would suck...

I don't see how it will be sustainable.

Say I rent a new movie....I keep it for 8 days, then return it. I rent a new game, and keep it for 11 days. I rent an older game and keep it for 13 days. I've drastically extended my rental time without actually paying more.

Now basically this will move a lot of movies off the shelves...effectively cutting the inventory of "previously rented" movies and games. Additionally, they can cut stock on the new movie shelves. Everything is now simply on the rental shelf.

Someone disappears with their copy of the Breakfast Club for 3 weeks? They just bought the fuckin thing...probably at full goddamn price for a used DVD.

The only problem I see is now they'll have to charge more for the initial rental, and/or keep more copies of everything in stock. Otherwise everything is gonna be ostensibly checked out. Except for Ishtar, and probably Howard the Duck. Face it...if they can't keep Bourne Supremacy in stock on opening week now, what's it going to be like when I can keep the thing for 8 days with no late fee?

Bring the noise.
Cheers.............

They're not smart, they're desperate

By comparison, say you rent a movie when it first releases on DVD and love it. $4 rental + $16 buyout = purchased DVD.

That is compared to $4 rental + $20 DVD purchase.

And face it, Blockbuster rents a fuckload of movies, but they don't SELL many movies....relatively speaking. Mostly because their prices suck, and pre-rented DVDs don't sell well, because everyone knows rentals get abused and DVDs and games are only 1 scratch away from being a coaster.

In theory, people should rent more, because it's no longer requires that you count the hours until due dates kick in. People will convert more rentals to sales, meaning more revenue, and less pre-rented stock....and more floor/shelf space.

Bring the noise.
Cheers.............

Blockbuster screwed over everyone when it was the big dog price-wise, and it's gotten by for years on a shady monopoly. Now it's getting it up the ass. I will fiddle as I watch it burn.

I went to BB for the first time in a while last week and the rental had gone up to 3.99 which seemed a lot higher than I remember.

The blockbuster I worked at until a few months back charged $4 after tax for a movie.  

I assume they're hoping that more customers will come in to offset the lack of late fees, but at the same time that means they'll have to have more stock which costs more money too.  I'm not sure this is really viable.

In the long run on-demand type services will kill them. Let's see, you can go to BB to rent a movie, or you can press a button on your TV remote...tough choice!

Both provide a temporary method of watching a movie, one requires much less effort and time than the other. As on-demand services build up bigger collections places like BB will have no value proposition at all.

Last I checked wasnt replacement cost on a movie at any rental place like 100 bones or some stupid amount? I'm guessing this is what they will charge you to replace it. The MPAA has to rape ya somehow.

Wayne Huizenga, who origionally created Blockbuster, predicted that it would be obsolete within the first decade of the new millenia.  It why he sold out in the late 90's and walked away with billions even though the market hadn't yet peaked.

The writing is on the wall for all B&M/physical means of media delivery (at least in areas with ubiquitous internet access), if it can be converted to bits and sent over a wire or through the air it will be.  These are big billion dollar multinationals so obviously they aren't going down without a fight but it is really just a matter of time.  Some may even survive but they wont be unchanged.

While this won't get me into a Blockbuster any time soon, it's definitely an interesting price plan. But fuck them. After years of having to pay shit tons of dollars to support my movie habit, I'm now a happy Netflix subscriber and I'm never left wanting.

About the only reason I've gone into a Blockbuster in the last year was to either rent a video game (which they didn't even have in fucking stock anyway) or get a video that I didn't feel like waiting on Netflix for. Total dollars spent: Around $12. In a year.

Meanwhile, Netflix has gotten my steady $20 a month for at least the last 12 months straight. I don't do pay-per-view movies, mainly because I just prefer sticking in a DVD on my schedule, but if I could on-demand get anything I wanted, widescreen and in digital goodness, for less money than I got at Netflix, I'd go that route. Netflix has it all over Blockbuster, though.

Exactly. And if you have a DVD burner, Netflix can pay for itself. Unfortunately, I don't have a DVD burner :(

That wouldn't be illegal now would it? I would hate to think people would use such useful commodities as DVD burners for piracy. Why they have limitless other useful applications!

*Sheepishly hides behind his immense stack of burnt DVDs*

I'm about to format my computer. 4 drives. 550 gigs. I'm backing everything up onto DVDs (everything that can't be reinstalled). DVD burners are a fucking necessity now. Say it with me, a NECESSITY.

Anyway, ya, Netflix pays for itself. If I didn't go out every Tuesday to Best Buy to PURCHASE the new releases, I'd probably subscribe.

550 gigs? What the fuck are you? A google server?