Blockbuster Goes Back to the Ever-Popular Late Fee

Blockbuster sucks. The once-mighty home video retailer has fallen on hard times and it waited entirely too long to adapt to a changing climate within its industry. It hopped on the NetFlix model and the RedBox model too late to change the advancing tide, and now it's starting to take more drastic steps to stay afloat where it can. To show how much it loves you, the customer, Blockbuster is bringing back the late fee. Awesome! Here's the subtle change: Apparenly, you could rent for $4.99 for seven days, but the company has shaved two days off of that time period, according to Home Media Magazine (by way of Worst Previews), and for every day you go over, you'll be charged an extra dollar. Want the spin? Here it is: "This is not a late fee. This is an additional daily rate," said Blockbuster spokesperson Michelle Metzger. "And if the customer is choosing to keep out a movie past the due date, then they are going to charged [accordingly]. If you keep a rental car out an extra day, the rental car company has to charge you." I don't know how much marketing experience they have over there at Blockbuster, but here's a basic tip: When you announce a change in the way you do business, tell the customer how it benefits them, not punishes them. It's also not wise from a PR standpoint to say that customers will now get less value first (five days as opposed to seven) before you start punishing them. This whole thing started on March 1st. Do RedBox and NetFlix have similar procedures? Yes, but they don't change them and highlight them as gains for the company instead of the customers.

Comments

[Rob]

They also raised their rate to renting a video game to $9 for 5 days and $1 extra per day. $9...I'm guessing a lot of people will do what I'm going to do and wait a few months and buy from gamestop instead.

[Emo]

Dammit Blockbuster! I've been holding out with my online account. When I started it in 2005..it was pretty awesome...and you could take your mailed in movies and get an in-store rental for no extra charge...as many times as you want...and they'd send your next mail rental right then. Then they changed it to where they wouldn't send the next mail rental until you turned in the in-store that you got.

Now they just suck. Guess I'll hit up netflix now. Cheaper anyway now-a-days

[MRPigg]

Actually, this new structure began last month at the one on my corner. They also offer a monthly membership that is worth the price if you rent a lot, but they don't advertise that much. Their PR department seems to not be on the ball.

If they are going to make the semantic argument of it being an "additional daily rate," then why don't they simply provide a service whereby you may be charged an initial daily rate of $1.00? You know, like their more successful competitors do. Who needs a movie for 5 days anyway?

Renting a game without the monthly membership is absolutely not worth it under the new structure.

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