Blockbuster Video -- NO MORE LATE FEES

[augie00]

I saw an ad for this on TV while I was watching basketball the other day. Is this real? Is this for good? Or is just a silly month long promotion?

This will change my life, despite an inevitable increase for the price to rent a dvd. I'm pretty sure that every time I've ever rented a movie, I've returned it late.

[Alobar]

[ QUOTE ]

This will change my life, despite an inevitable increase for the price to rent a dvd. I'm pretty sure that every time I've ever rented a movie, I've returned it late.

[/ QUOTE ]

I havent seen the commercial so I cant comment specifically. But was it for any movie rented, or just joining their program dealy wher you pay X amount a month, and get unlimited free rentals, and no late fee??

Imthe same way tho, I dont even rent movies because once you tack on the inevitable late fee to the high price of renting it, its just as cheap to buy it.

[CWsports]

Sounds like Blockbuster's version of NetFlix....17.49 a month and you can have up to 3 movies in your possession at one time and there are no late fees

[Nick B.]

[ QUOTE ]
Sounds like Blockbuster's version of NetFlix....17.49 a month and you can have up to 3 movies in your possession at one time and there are no late fees

[/ QUOTE ]


They have the movie pass which is like $25/month and you can have 2 movies out at a time.

[ClaytonN]

Blockbuster did it in response to Netflix. Business decision.

Doesn't matter, I use Netflix anyways.

[Ulysses]

People are confusing two different things.

1) Blockbuster has started a Netflix type service.

2) For standard rentals, they have "elimnated late fees." But not really.

Under the "no late fees" program, Blockbuster still has due dates -- one week for games and two days or one week for movies. However, if customers need to keep the product an extra day or two, they can, stress-free. Blockbuster now gives customers a one-week grace period at no additional charge. At that point, if customers want to keep the movie or game longer, they can. Blockbuster will automatically sell them the product, less the rental fee. If customers decide they don't want to own the movie or game, they simply return the product within 30 days for a full credit to their account, less a minimal restocking fee.

[Stork]

It's about [censored]' time. I've probably paid more in late fees than what I've paid for renting the actual movies.

[brassnuts]

[ QUOTE ]
Under the "no late fees" program, Blockbuster still has due dates -- one week for games and two days or one week for movies. However, if customers need to keep the product an extra day or two, they can, stress-free. Blockbuster now gives customers a one-week grace period at no additional charge. At that point, if customers want to keep the movie or game longer, they can. Blockbuster will automatically sell them the product, less the rental fee. If customers decide they don't want to own the movie or game, they simply return the product within 30 days for a full credit to their account, less a minimal restocking fee.

[/ QUOTE ]

This actually sounds like a very fair policy.

I have the movie pass. It's 20 bucks a month and 3 movies at a time. I used to have Netflix, but considering I live less than 2 miles from Blockbuster, I switched.

[Bob Moss]

They still have late fees, they just call it by a different name now. For an explanation, see this blog entry (http://godlikenerd.com/weblog/2004/12/15/late-fees/).

Bob

[Stork]

You still get to keep the movie for longer, though.

[soah]

So if you return the movie late, you get charged a restocking fee rather than a late fee?

[Prelude008]

Supposedly, if you are over a week they will charge you the price of the movie. If you return it afterwards, they will credit you the movie price less a restocking fee.


I always had late fees at BBV so I got Netflix but quit when they raised the price to 21.95 (which they since lowered). The best deal now is Blockbuster's Online service, it's just like Netflix but cheaper 14.99 a month (3 DVDs at a time). They will also give you two instore movie or game rentals each month. Probably a way to get restocking fees. I still pay but hardly watch the movies. My record over two months (online rental) before watching them - but no late fees /images/graemlins/cool.gif.

[AngryCola]

This is silly, because people are just going to start ignoring the actual due date. Most people will just go by when they actually must return the movie. I know I will.

[jakethebake]

[ QUOTE ]
Sounds like Blockbuster's version of NetFlix....17.49 a month and you can have up to 3 movies in your possession at one time and there are no late fees

[/ QUOTE ]
Yea, BB did this recently. They have a thing just like Netflix except cheaper. It's 14.99 I think.

[SomethingClever]

[ QUOTE ]
People are confusing two different things.

1) Blockbuster has started a Netflix type service.

2) For standard rentals, they have "elimnated late fees." But not really.

Under the "no late fees" program, Blockbuster still has due dates -- one week for games and two days or one week for movies. However, if customers need to keep the product an extra day or two, they can, stress-free. Blockbuster now gives customers a one-week grace period at no additional charge. At that point, if customers want to keep the movie or game longer, they can. Blockbuster will automatically sell them the product, less the rental fee. If customers decide they don't want to own the movie or game, they simply return the product within 30 days for a full credit to their account, less a minimal restocking fee.

[/ QUOTE ]

Ahahahahahah.

I hate Blockbuster.

[zephed56]

[ QUOTE ]
People are confusing two different things.

1) Blockbuster has started a Netflix type service.

2) For standard rentals, they have "elimnated late fees." But not really.

Under the "no late fees" program, Blockbuster still has due dates -- one week for games and two days or one week for movies. However, if customers need to keep the product an extra day or two, they can, stress-free. Blockbuster now gives customers a one-week grace period at no additional charge. At that point, if customers want to keep the movie or game longer, they can. Blockbuster will automatically sell them the product, less the rental fee. If customers decide they don't want to own the movie or game, they simply return the product within 30 days for a full credit to their account, less a minimal restocking fee.

[/ QUOTE ]
The minimal restocking fee is $1.25.

[TimTimSalabim]

[ QUOTE ]
I used to have Netflix, but considering I live less than 2 miles from Blockbuster, I switched.

[/ QUOTE ]

I live even closer than that to my mailbox, so I think I'll stick with Netflix.

[LethalRose]

Well..I work at blockbuster 1 day a week while in college for free rentals and lots of single chicks come in, very +EV for dating. Plus it pays halfway decent for standing around talking about movies.

First off, this isnt a promotion..its going to be this way forever.

The company did this b/c the #1 complaint against BBV is late fees. As told to me by my district leader.

basically, in 2002 the company decided it was going to test market several different types of rental prices/terms.

this is the end result...

You rent a movie, its either due the next day or a week. you get an additional 7 days past the due date to get it in by midnight. if you dont, you get charged the previously viewed price of the movie (about 15.99)
within 30 days you can come in and the balance taken off the act, we charge you $1.25 to "restock" it.

the restocking fee is essentially our attempt to get some money back on the rentals we have lost. a single movie can rent 4+ times a week ($16 in rental revenue)

by "restocking" it, we essentially check it in and throw it back on the shelf. we do it anyway, its effortless, takes 15 mins to reshelf 200 movies.

My store was not one of the stores who was originally on this program, we were doing a completely different system where the prices were a little cheaper, and you had a choice whether you could get it for a day or a week.

I have talked to some customers who have lived in areas where the new system has been in effect for months. They simply complain there are no movies to rent. People literally stand by the drop box for a good 30 mins hoping their movie will drop in. BBV is going to compensate this by giving us about 3x as many rentals to shelf. Its still not going to be enough..

its going to be impossible to get a new title on a friday or saturday night. It is now..you literally have to ask us within 2 mins of the movie being returned. Any other night you should be ok.

My advice if you rent movies, get the movie pass or do the online deal we do through the website. The convenience factor is enough for most people to sign up.

if you do the movie pass, come in on tuesday or weds and get the new movie of the week so you can be sure to have a copy for friday/saturday.

if you do it online, put the newest movies on the top of your list and get your old movies in as soon as you can, so you'll get the newest release.

[MissOt]

i loved the commercial though

[Reef]

[ QUOTE ]
You still get to keep the movie for longer, though.

[/ QUOTE ]

but then people will procrastinate turning it in even longer

[elwoodblues]

[ QUOTE ]

So if you return the movie late, you get charged a restocking fee rather than a late fee?

[/ QUOTE ]

Correct, because if you return it on time, they don't need to re-stock it...wait a minute...

[B00T]

Whatever happened to the rumors they would be making the self-destructing DVD's after 36 hrs or whatever.

[TimM]

[ QUOTE ]
They still have late fees, they just call it by a different name now. For an explanation, see this blog entry (http://godlikenerd.com/weblog/2004/12/15/late-fees/).

[/ QUOTE ]

These complaints are silly. They can't let people keep movies indefinitely without some kind of charge.

Sure, if you have netflix you can keep a few movies as long as you want. But you are paying a monthly fee that will quickly add up to more than the movies cost. Think of that as a "late fee".

[TimM]

[ QUOTE ]
by "restocking" it, we essentially check it in and throw it back on the shelf. we do it anyway, its effortless, takes 15 mins to reshelf 200 movies.

[/ QUOTE ]

This is not the point of the restocking fee. If someone keeps a movie for a month and you assume they are buying it, you might need to replace it. Now if they bring it back, you have one more used copy than you planned on.

[TimM]

I'm still waiting for Cablevision On Demand to catch up with this market. They are still charging $4.95 to view a movie for a 24 hour period. You don't have to leave the house, there is a long list of movies to choose from, and you don't have to deal with discs or tapes. But $4.95 is way too much considering the alternatives and the fact that the marginal cost of piping one of these movies over their cable is nearly zero. Perhaps the MPAA is making them give a cut for each viewing, rather than the one time hit Blockbuster and Netflix pay when they buy a disc.

[LethalRose]

[ QUOTE ]
[ QUOTE ]
by "restocking" it, we essentially check it in and throw it back on the shelf. we do it anyway, its effortless, takes 15 mins to reshelf 200 movies.

[/ QUOTE ]

This is not the point of the restocking fee. If someone keeps a movie for a month and you assume they are buying it, you might need to replace it. Now if they bring it back, you have one more used copy than you planned on.

[/ QUOTE ]


You would think this is the correct, but its not, we dont get new copies of movies unless there is an upcoming sequel. Corporate decides what movies we get, our inventory has nothing to do with it.

now with this new system, that my change, however this issue was not discussed in our meetings so im not sure. it takes a few weeks once we order a movie to get it, by that time the movie wont be that popular so we wont need the extra copies.

[zephed56]

[ QUOTE ]
[ QUOTE ]
by "restocking" it, we essentially check it in and throw it back on the shelf. we do it anyway, its effortless, takes 15 mins to reshelf 200 movies.

[/ QUOTE ]

This is not the point of the restocking fee. If someone keeps a movie for a month and you assume they are buying it, you might need to replace it. Now if they bring it back, you have one more used copy than you planned on.

[/ QUOTE ]
The restocking fee also covers collection costs.

[Prelude008]

I worked at BBV too in the 90's. It's a fact that --
- People don't like late fees.
- People will return their movies late

I don't think their new program will achieve very much. I would almost perfer to have an expected "late charge" of 4 bucks than a credit card charge of 14-19 for the cost of a movie. People will still be late, even with the extra time and will now get a high credit card "movie charge" of 14-19 dollars that they will have to take care of, monitor to see if they actually get credit for turning in their "late movie" and they still have to pay a late fee "the restocking fee".

Sign up for Blockbuster's online rental for 14.99.

[Prelude008]

I knew they were "late fees" in disguise. Saw this story online today:

NEW YORK (Reuters) - Blockbuster Inc. (NYSE:BBI - news), the top U.S. video rental chain, will pay $630,000 to settle 47 states' claims that its "No Late Fees" policy deceived customers, the company said on Tuesday.

Blockbuster will also refund customers who claim they were misled and charged restocking fees or the full price of rented movies if they were returned a week after the due date, according to a statement from Pennsylvania Attorney General Tom Corbett.


The agreement, which also includes the District of Columbia, would also dramatically alter the way Blockbuster advertises its "No Late Fees" policy in the future.


Blockbuster spokeswoman, Karen Raskopf, said the settlement excluded the state of New Jersey, which last month filed a lawsuit accusing Blockbuster of failing to disclose key terms of its new rental policy.


"We continue to talk to them. We are hopeful we can reach a resolution with New Jersey," Raskopf said.


The settlement does not call for changes in the "No Late Fees" policy, Raskopf said, but the movie renter agreed to make available at its stores and through other means more information to ensure customers fully understood how the program worked.


Michigan Attorney General Mike Cox said the $630,000 award would cover the states' attorney fees, costs of investigation and consumer protection.


"It's important for businesses to be truthful in their advertising to Michigan consumers," Cox said. "Customers ... should not have to search for the real price hidden behind catchy slogans and disclaimers."


CLEAR DISCLOSURE


Under the terms of the settlement, Cox said Blockbuster agreed that in future advertising, among other steps, it will not represent directly or by implication that there are no late fees or only limited late fees unless such representation is accompanied by clear disclosure of any charges.


In addition, the movie renter would advise of any limitation on the stores participating in the offer; clearly display its rental return policy and applicable charges if products are not returned.


Blockbuster will also post notices throughout each store to inform customers of the "No Late Fee" program's terms and provide brochures with the details of the offer.


Raskopf said any costs associated with the settlement would be immaterial, but a branding expert said the debacle could help alienate some customers.


"Every message they bring into market is going to be greeted with a little bit of skepticism and that's not what you want for your brand," said Tom Dougherty, managing director and senior strategist at brand development firm Stealing Share, Inc.


When it unveiled the new policy in December, Blockbuster said customers would have a one-week grace period after the rental due date. If a rental was returned later, the customer would be charged for the purchase of the item.


If the item was returned within 30 days, the customer would receive an account credit but would be charged a restocking fee of $1.25. The Pennsylvania attorney general's office was one of six state agencies to negotiate the agreement with Blockbuster, which recently abandoned a bitter takeover battle for No. 2 U.S. movie renter Hollywood Entertainment Corp. (Nasdaq:HLYW - news)


The launch of the "No Late Fees" policy marked an attempt to reinvigorate rental demand as Blockbuster grapples with growing competition from online renters to discount retailers, including Wal-Mart Stores Inc. (NYSE:WMT - news). Blockbuster shares ended down 2 percent at $8.74 on the New York Stock Exchange.