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Blockbuster reveals DVD e-rentals

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Blockbuster reveals DVD e-rentals

Old 10-28-02, 06:40 PM
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Blockbuster reveals DVD e-rentals

Gee, this idea sounds familiar...

DALLAS (CBS.MW) -- Blockbuster Inc. has plunged into the online DVD rental business, saying it owns a service similar to the pioneering Netflix Inc.
Online Subscription Services' DVD Rental Central offers a flat-rate program costing $19.95 a month. Customers can rent as many as four DVDs at a time with no late fees, a plan similar to the one offered by Netflix.

Video Business Online quoted a spokeswoman for Blockbuster (BBI: news, chart, profile) as saying the company's investment gives Blockbuster "the ability to monitor and study online mail order. If it ever does become a profitable business, we would be in a position to jump in." Blockbuster reportedly believes the online rental market appeals to 2 or 3 percent of DVD renters, a market estimated at 2 million to 3 million people.

Old 10-28-02, 09:45 PM
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We've heard from Wal-Mart & Blockbuster. Next up... Columbia House.

With Blockbuster, I wouldn't use them out of principal.
Old 10-29-02, 02:17 PM
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I hope that Blockbuster does this. It will help to bury them. It is a great model to use for an online/mail order company, but cannot be easily applied to a brick and mortar store.

Problem #1: They have already had problems with offering this on their games -- they don't know when they are coming back and have had to spend immense amounts of money replenishing stock.

Problem #2: Blockbuster has become overly dependent on late fees as a source of revenue, that will be severely reduced to those who don't use the plan.

Problem #3: Their most frequent renters are the ones who will use this. They will go from collecting $4-5 a pop to limiting their customers' spending to $20 per month. Another drastic income reduction.

Go for it Blockbuster! Put your foot in the grave! Please!

Old 11-08-02, 04:50 PM
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Not impressed so far.

Ordered from Filmcaddy on 11/2.

Disc 1 shipped 11/5.
Disc 2 shipped 11/6.
Disc 3 shipped 11/7
Disc 4 shipped 11/8.

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