http://money.cnn.com/2004/12/14/news/midcaps/blockbuster_latefees/index.htm?cnn=yes NEW YORK (CNN/Money) - Blockbuster Inc. announced Tuesday it is abolishing late fees on all its video tapes, DVDs and video games as of Jan. 1. The world's largest video rental company will still have due dates for their rental products -- one week for games and two days or one week for movies, depending on whether it's a new release. But customers will be given a one-week grace period after that to return the product. After that grace period ends, the chain will automatically sell them the product, less the rental fee. If the customers don't want to purchase the movie or game, they can return the product within 30 days for a credit, less a restocking fee. Blockbuster (Research) has been competing with the growth of by-mail rental services such as NetFlix (Research), which allow customers to keep movies as long as they want in return for a monthly fee. In August, Blockbuster started offering that kind of monthly rental service itself. It said Tuesday that service will continue in addition to this new individual rental policy. "For the past year, the company has been testing a variety of rental options in markets across the U.S.," it said in its statement. "In no-late-fees test markets, the increased rental transactions and retail sales offset the lower level of revenues resulting from eliminating late fees." It estimated that late fees would have contributed about $250 million to $300 million to revenue next year. The company said it also plans to lower its ongoing marketing, operating and promotional costs after implementing the change. The company said as a result of the move it expects operating income in 2005 to be flat compared with 2004 results after an estimated $50 million it will spend to market and implement the change to a no late fee system. Analysts surveyed by earnings tracker First Call had forecast that the company would earn 73 cents a share in 2004 and 67 cents a share in 2005. That works out to about a $6.5 million drop in forecasted earnings between the two years. Blockbuster, which was spun off earlier this year by media conglomerate Viacom (Research), is in the process of bidding for competitior Hollywood Entertainment (Research), the No. 2 video rental chain. Hollywood Entertainment has entered into a merger agreement with buyout firm Leonard Green & Partners as well as Hollywood's top management to take the company private. Blockbuster is offering $11.50 a share for Hollywood, or about $700 million, and it has said it would be willing to raise its bid subject to a review of company financial information. Leonard Green and Partners is offering $10.25 a share for the company. Movie Gallery (Research), the No. 3 video rental chain, is also involved in the bidding.
I liked the late fees better. Of course, since they dropped to a really small amount (like 20 cents a day for the cheap stuff), I've been keeping stuff several days late on purpose just because I keep thinking I'll have time to get around to watching it. Since I live in a small town, perhaps, the Blockbuster doesn't like it and keeps calling me to ask about them (yes, I know, I have the movies, I'll pay the late fee). But now... what if I just forget and I'm stuck with it???
It makes sense because they order like, 300 copies of new releases anyway. This is good for me because I keep movies late CONSTANTLY. I just have some sort of mental block preventing me from returning them. I dunno what it is, but pretty much every movie I rent I end up paying like, 20+ dollars for in late fees. Now at least I'll get to keep the movie...
WTF would you keep renting movies, then? I stopped renting for this exact reason and now if i want to watch a movie I will buy it. Considering I don't rent that often and now I purchase movies a little less than that, I'd say not only do I spend less, but I get to keep the movies. Especially since I always try to buy them used.
I'm not sure what these "fees" will add up to be... and is anything still "priced for rental", like in the old days? If so, they could get really expensive. CD Exchange in San Antonio has VHS tapes (yes, I still use them) for like $6. Guess I'll start buying movies if I can find the ones I want. It scares me too much to think of being a week late, just because I was busy, and getting hit up for something I really can't afford.
This isn't as good as it sounds. You rent a movie. Late 9 days=debit on CC for said amount. Late fees apply if you want to give the movie back. Games late 14 days=debit on CC for said amount. Sounds pretty crappy to me.
I thought this meant that I wouldn't owe them anything as of Jan 1. Then I kept reading.... Looks like I still owe them 10 bucks.
and next thing, you'll be expecting me to be everywhere on time. And not to do my work at the last minute. And to pay my bills when they're due, or even mail them a little beforehand. Way too much to ask. (and my students are wanting all sorts of grades from me, but they're not due until tomorrow. Nap time. )
I would rent a lot more movies if they did away with the punitive late fees. I'm not sure that this new scheme does that, but we'll see.
those teachers that took a week to grade a scantron pissed me off. and i can happily say im good with returning movies so far. infact i'd rather blockbuster give me 4-5 days like hollywood does but charge less. i usually watch a movie within a couple of days...i'd rahter not pay 4 bucks.
**** blockbuster. Just another scam. At least you wont have to bother remembering to bring in a movie before noon, but that still doesn't change the fact that you are overpaying(5 bucks for 5 days? pfft, might as well just buy it, or make sure you catch it in the movies) and being given a ****ty selection of movies.
Movie Pass from Blockbuster.... Blockbuster Inc. has launched its in-store Movie Pass. The Blockbuster Movie Pass allows customers to rent an unlimited number of DVD and VHS movies, up to two at a time, and keep them for as long as they want while on the program. With a Blockbuster Movie Pass, there are no return dates and no extended viewing fees (aka late fees) - all for $25 per month.
