Blockbuster raises online rental prices

By Justin Mann on December 21, 2007, 1:16 PM
Blockbuster is finding it harder to compete online than they originally imagined. With Netflix ruling the roost, Blockbuster sought to make a name for themselves by having a much lower monthly fee for their service. While they did have Netflix beat in some areas, such as extending it to their brick-and-mortar stores, it doesn't seem to be getting the critical mass they want. As such, they are raising the price on the services they offer, by around $2 a month. The cost of other services too, such as their “premium” rental plan, will get price hikes – up to $35 a month for that one, a $10 increase. A bit of a slap in the face if you happened to already be paying $25 a month for it.

At the same time, they lowered the cost of some other services, probably in attempt to reduce potential customer losses. Overall, however, this is probably a negative move, at least for the online portion of their business.




User Comments: 4

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viperpfl said:
I just got the email the other night from Blockbuster that my subscription will be increasing $11. I started not liking Blockbuster ever since they started decreasing how many movies they send out and this is the icing on the cake. They are going to have significant loss of customers especially from the customers who got socked with a 50% increase. I will stick with Netflix, they seem to be the better deal.
lncpapa said:
I am considering closing my account as well - think I will as soon as my queue is finished. First they take away the option to return movies to the B&M stores, now a price hike. I'm disgusted.
Julio said:
Blockbuster has despiteful practices, I wouldn't mind them going under at all.
captaincranky said:
[b]Originally posted by lncpapa:[/b][quote]I am considering closing my account as well - think I will as soon as my queue is finished. First they take away the option to return movies to the B&M stores, now a price hike. I'm disgusted.[/quote]I received my notice of a rate increase true enough, but after a reread of the terms of subscription, I didn't come away with the perception you can't take movies back to the stores, just a $2.00 increase, everything else stays the same. (Or so they're saying for now, (as per their email to me)). Is this a specific rental plan issue. While I'm not directly defending Blockbuster, it surely must be realized they wouldn't be able to sustain the wildly liberal rental policies they were maintaining for the purposes of a price war. 2 bucks is 2 bucks for sure, but for me not worth quitting. Granted though, it's really annoying.[Edited by captaincranky on 2007-12-21 15:56:56]
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