Blockbuster Online Quesiton

I used to use Netflix and it normally would take a week to receive movies. I switched to BB, I turn watched movies in at the store and my requests usually arrive in 3 days. Plus you get freebies in store so you're never without a movie.

 

Blockbuster Online blows Netflix out of the water.

They are much faster in mailing the movies. Plus when you take the online envelopes to the stores you can exchange them for instore rentals. By the time you finish watching those your movies in the mail have arrived.

Pretty much how I was able to finish three seasons of Lost in two weeks.

 

Blockbuster Online is 100X better than Netflix. For 9.99 a month, you can have unlimited rentals, one at a time, which you can return at the store for another rental. So thus it is kind of like having two at a time for the same price.

In regards to them sending it faster when they scan your dvd at Blockbuster: they only scan it and then they send it back to the local shipping center. But only when the shipping center receives it, will your next online dvd ship.

What is also cool about Blockbuster is that they give you a free video game rental per month. If you don't play video games you can just exchange the coupon for a regular dvd.

 

nope -- free rental for every movie you return to the store

 

This is sort of on topic. Here's an article I read about Netflix and Blockbuster this morning. The writer basically says Blockbuster is losing boatloads of money on this program and will soon raise prices to where it makes sense for them. Supposedly when this happens, Netflix will again be the better value.

http://www.msnbc.msn.com/id/19981152/

Netflix reeling but poised for comeback
Online pioneer has assets to survive epic battle with rival Blockbuster
ANALYSIS
By Bill Briggs
MSNBC contributor
Updated: 6:33 p.m. CT July 26, 2007

In Hollywood, epic dramas offer a knee-hugging ride of rises and falls, while classic comedies inject a dash of darkness into their otherwise cheery tale.

In the mysterious case of online-DVD provider Netflix, life imitates art. Investors and consumers are watching a typical big-screen story line unfold: A fast start, followed by a surprise plot twist. What many don’t see yet is the happy ending.

It’s coming.

Is the Netflix business model broken or edging past its prime? No. Not yet. Will the company survive a triple-feature of lost subscribers, stock plunges and bloody price wars with archrival Blockbuster? Absolutely. Netflix is the furthest thing from a business horror show.

The opening act was brilliant for Netflix, which launched its subscription service in 1999. The company created a nifty niche, allowing customers to select and rent, via its Web site, a stack of DVD movies that would appear in their mailboxes about one business day later. Netflix quickly lured millions of subscribers while brick-and-mortar stores like Blockbuster seemed to age overnight.

Then Act Two: Blockbuster fought back. The movie-rental giant created its own online, mail-delivered rental service in 2004 and undercut the Netflix prices by about $2 a month. Both competitors kept trimming their prices for another year.

But last November, Blockbuster increased the pressure on Netflix by introducing its “Total Access” deal. Under that program, Blockbuster customers had the option of returning online-rented DVDs to their local Blockbuster store instead of sticking them back in the mail. Each online rental could be exchanged at the store for a free, in-store rental. Tens of thousands of Netflix loyalists swapped allegiances and ran to the better value.

“I tried Total Access for a month, and you can get a boatload of movies that way,” said longtime Netflix customer and shareholder Anders Bylund. “With Blockbuster Online’s three-DVDs-out plan, you can watch, say, 15 movies a month (at $16.99 per month). But with Total Access, you can easily double it to 30 a month (at $17.99 per month).”

By March 2007, Blockbuster reported a subscriber base of about 3 million — and two straight quarters in which it beat Netflix in customer growth. This month Netflix reported its first decline in subscribers, to 6.74 million, down about 55,000 from three months earlier. The financial bloodletting was just beginning.

Netflix recently snipped prices on its two most-popular plans to undercut Blockbuster’s Total Access program and win back customers. But the move is expected to eat into revenue.

Netflix executives now project a full-year profit of between $42.4 million and $52.4 million, below their April forecast of as much as $60 million. You don’t need to peek at the script to know what happened next.

On Tuesday, Netflix stock prices touched a 52-week low, at $15.24. Making matters worse, the company’s Web site — its rental engine — crashed Monday night and was down for some 18 hours.

Was this the big death scene for Netflix? Hardly. There are two reasons, one tangible, the other subtle. Subtlety first: Netflix has a core of loyal customers who latched on in 1999 due to what they describe as its simplicity, value and customer service. It’s hard to see the Netflix subscriber base shrinking any lower.

“To me, Netflix was a beautiful design, with easy-to-use software (like iTunes), smart tools like (movie) recommendations and affinity groups, and very fast service if you live in a town like Denver where they have a big warehouse. I would hate to see them falter,” said Michael Booth, a self-described “heavy” Netflix user and a movie critic for The Denver Post.

“I love the service. I have an affection for it the same way people have an affection for iPods or Google or any other perfect technology. I'm surprised they are crashing. I know they have huge customer churn, and that's always a big problem in technology. Just ask XM Satellite or AOL. They spend a huge amount just trying to stay even on subscription numbers because so many people drop it,” Booth said.

Beyond that, there are the hard numbers. Netflix boasts a far tighter balance sheet than Blockbuster, which has lost gobs of money to prop up its Total Access program. On Thursday Blockbuster reported a second-quarter loss of $35.3 million, or 20 cents a share, compared with net income of $68.4 million, or 31 cents a share, a year ago. Blockbuster blamed costs associated with Total Access. Blockbuster also lost $49 million in the first quarter.

Netflix, meanwhile, has earned $35.4 million during the first half of 2007.

Blockbuster, which said it is undergoing a “comprehensive review,” can’t keep gushing money to keep pace with Netflix. In coming months, the company will face two tough choices, predicted Bylund, who writes about the DVD-rental industry for the Motley Fool stock-advice Web site.

“They either have to have to stop giving away free movies or raise prices,” Bylund said.

When that happens, the value pendulum swings back to Netflix. So does the customer flow.

But you’re thinking: What about instant movie downloads? Isn’t that the new wave anyway? Sure. But it has not yet been fully embraced by enough movie watchers to make a difference. Downloading music to iPods is all the rage, but you can still find CDs in the stores, Bylund pointed out. And Netflix already offers instant movie downloads, albeit with limited (2,000) title selection.

Even here, though, Netflix could come out ahead on loyalty.

“Universal acceptance of downloaded movies or PPV (pay per view) is still a few years away,” Booth said. “And since they have the best customer service model with a lot of loyalty, why can't they cash in on that when it comes to downloads? I would trust them on downloads way ahead of Amazon, Wal-Mart or anybody else.”
© 2007 MSNBC Interactive

 

yeah i was wondering when blockbuster would raise the prices or change the program. i have no idea why anyone would just go into the store to rent a movie when you can get their absolute lowest online program for the price of two.

i had netflix and they shipped fast, but blockbuster's deal is just ridiculous. i can return 3 movies on a monday, pick up 3 at the store that day, then get 3 more in the mail on wednesday.

 

I get my movies quick from Netflix, never had a problem. There is also a blockbuster by my house but my netflix queue is so long that it would take forever to build it back up on blockbuster. NETFLIX FO' LIFE!!!!!!!

 

"Blockbuster Gimps Total Access Plan, Now Only 5 Free Exchanges a Month, $1.99 Each After"

http://gizmodo.com/gadgets/movie-re...e-exchanges-a-month-199-each-after-283286.php

 

After loving the total access plan for the past few months, I'm now going to have some serious debates as far as which plan to choose. The Netflix plan of 3 DVDs at a time for $16.99 or Blockbuster's 2 DVDs at at time for $21.99 with unlimited exchanges (up from $14.99). I still like the flexibillity of the Blockbuster plan (especially since there are 3 blockbusters with 5 min driving), but the $7 hike is making me start looking at the otherside again. Atlest I have 3 months to decide (grandfather clause).

I also want to know if the "no late fee" clause works for games also. Because if it does, the $5 to rent, and $2 to restock (6 months after I get bored of it) sounds like a pretty sweet deal.

 

According to that link, alot of existing customers will still get the unlimited plan still in terms of returns at the store. I'm on a 9.99 plan, and my account still says unlimited rentals at the store. But I've been with Blockbuster for 6-7 months already though, so it might make me a preferred customer.

 

That's cool and all, but you can't tell people that are thinking about trying out the service that they'll get the same deal.

 

I'm currently on a free month-long trial for Blockbuster, and personally, I think it's better than Netflix. The whole store exchange thing is awesome. Bring in your online mailed movie, grab a movie off the rack, go up to the counter, and then leave with your new movie. Essentially, with the unlimited Total Access plan, I could have 6 movies out at one time (actually worked out a scenario where I could have 12 movies at once ). Plus, I get an e-coupon for a free game rental every month. Can't beat that for the price.

... However, that was before they decided to change their plans. Now, I'm thinking of dumping Blockbuster just on principle. I mean, WTF Blockbuster? Netflix lowers their prices, so you in turn RAISE yours AND gimp your only advantage over the competition? Pathetic. I emailed customer service to see if I'm eligible to retain my unlimited plan for $17.99, even though I'm on a free trial, and they gave it to me. I guess threatening to leave worked. However, like others in this thread, I'll need to decide if I'm really going to keep Blockbuster long-term in a few months. What to do, what to do. Love Blockbuster's service and value, HATE HATE the company.

 

Seems kind of shady that BB is changing their plan already. Almost like a bait and switch kind of thing.

With Netflix, I can mail my movies on Monday and have new ones in my mailbox by Wednesday, since they have a shipping center in Houston. The in-store thing for BB doesn't really appeal to me. The whole point of doing it online is so I don't HAVE to go to the store.

I'm sticking with Netflix.

 

You dont HAVE to go to the store. Its just an extra convenience option which is offered to Blockbuster customers.

 

I know, but from what I understand, the BB shipping center is in Dallas so it takes the movies longer than Netflix to come via the mail.

 

Netflix sent me a little email the other day to tell me they were reducing my price a dollar per month. That was nice.

Between them and Blockbuster, there's is just nothing to consider for me. Blockbuster jerked me around so much when they were on the top of the heap that they could give movies away for free now and I still won't do business with them. That Netflix came in with a new, better model and kicked the crap out of Blockbuster until BB was forced to provide some value to customers just makes me like Netflix all the better.

 

Has this been confirmed? The address on my mailers gives a Dallas address, but Blockbuster itself is headquartered in Dallas, so perhaps what I'm seeing is the HQ address. At any rate, it's kind of moot, as I've been getting my movies as fast as I did from Netflix (one-day shipping).

 

I really don't blame Blockbuster for what they did. Bait and Switch is done all the time in business. Their main goal was to get as many customers as possible. They'll lose a few customers, but I think most of the people that joined or switched to Blockbuster will stay with them. I think they're changing the plans for the customers that get a lot of DVDs. My plan hasn't changed. If it does, I might switch to Netflix. I'm on the $9.99 plan, so I don't get that many DVDs per month. Netflix's similar deal is $8.99, but Blockbuster is still a better value with the free trade ins and a coupon for a free in store rental each month.