Blockbusters are increasing their prices for their monthly dvd rentals by $2. We are on the $14.99 plan for two videos at a time and 3 instore exchanges per month. The $2 increase is not a lot but is a 13% increase. Strangely their email extols the virtue of their existing service but gives no details as to what extra benefits are available for the increased price. A temporary way around the increase might be to upgrade NOW to the 3 dvd’s at a time, 5 instore exchanges which is currently $17.99 and a 6 month prepaid subscription is available (but no discount). So for an extra $1 a month you get one more dvd in shipment at any time and an extra 2 instore changes.
Comments
I wonder if that’s to cover for any postal increases that are being threatened. I know that Netflix was being targeted for a rate increase because the mail systems have problems processing the netflix mailers… Never seen the Blockbuster ones but it may be the case…
Im dumping blockbuster due to there games and price increases again.
this is a company that has not realized it is going out of business.
I called and sent notes to the CEO. He could give 2 craps about loosing a loyal customer.
Netflix here I come.!!!!!!
http://www.netflix.com
I am on the 24.99 3 by mail, unlimited in store, this is going up a full $10 to $34.99.
Coincidentally I received a free trial to Netflix.
This is the second significant increase by Blockbuster in under 6 months, I am through with them, this is utter nonsense.
When I read this on Reuters I couldn’t believe it. It is the SECOND increase this year. I sent an email to them trying to validate it, then saw in my email box a lovely worded letter about holidays, giving, and-oh yeah – you’re getting jacked from 21 to 34 bucks. I cancelled immediately and signed up with Netflix.
It’s unfortunate that the CFO and CEO didn’t do their homework and have all but decimated their margins on rentals. This however is not my problem.
I believe that should grandfather the subscribers, the ones who are in already, should stay at their existing rate and new customers can come in at the higher rate.
They are complete morons.
I was with Netflix before BB and enjoyed it until a few months ago with the first price increase.Now with the this increase my plan goes from 24.99 to 34.99…Bye BB.In store rental was nice but not worth the increase.I wrote BB and no reply so I guess customer satisfaction isn’t required to run that business just stockholders.
Wow… I’m angry to say the least; but truly what should one expect… never blame the Top, everyone knows that poop runs down-hill.
With the increase going to $24.99, I didn’t like it, but I was willing to stay on as a Online Total Access subscriber.
But all of this has changed now… and honestly I looked at the pros & cons of both -(I was basically giving Blockbuster a chance); but after reading several media releases and reading the comments made by their (super-clown) CEO & P.R. Staff… Good-Bye BB.
This clown had the audacity to basically call Loyal Customers, “… Wrong Sort, Heaviest Consumption & Price Sensitive” Customers!
With the means to track Consumer useage of the various Plans (including Online Total Access Plan- Unlimited), I can only assume that No one bothered to also check & find out that many of these “Wrong Sort…” users were not only Total Access Plan-Online Consumers, but still very active In-Store Consumers!
Talk about “Kill Two Birds with One Stone”… how about kill an entire species with one stone! If there’s to be someone or people who are “responsible” for BB’s losses… again why did No one bother to FIRE the brilliant mind behind the plan if it was so horrible! With unlimited (no pun) resources available for market analysis… (you know, all of the business lingo) did no one in this huge world reknown Corporate Entity do their homework???
Seems to me that the wonderful CEO would/should have at the very keast known and given some type of go-ahead Nod to the launching of this “expensive & unprofitable” campaign be allowed to start.
Shame on you BB… why pick on & lay blame to loyal customers? Well, I must confess to all, I’m no MBA so what would I know about dollars & cents or is it sense… never the less, for a consultation fee of… let’s see, how about $34.99/month… I could put $$$ back into everyone’s pockets.
Lets start (at the TOP) by canceling stock options, bonuses & having the Head (CEO, CFO and all other “O”s & Big-Whigs) voluntarily institute a pay cut in their salaries in efforts to pull sinking BB from it’s sure watery grave OR would this be “Price Sensitive”?! Oh how wonderful it would be to see such a thing happen, this would truly be inspiring to the thousands of BB employees (grunts)already under the Corporate SpotLight!
http://www.secinfo.com/d14D5a.u4GAx.htm
PLEASE visit this website, read all of it and be sure to note paragraph #3 (This Public knowledge)… and I took the liberty of this excerpt: [it’s sickening… “price sensitive… yeah right!!!]
Mr. Keyes will receive an annual salary, to be determined by the Board, of not less than $750,000 per year and will be entitled to receive, in addition to his base salary, an annual bonus in an amount not less than $500,000, subject to the terms of Blockbuster’s Senior Bonus Plan (the “Senior Bonus Plan”). With respect to the bonus applicable to calendar year 2007, Mr. Keyes will receive a guaranteed pro rata amount of the bonus based on his period of employment during 2007, although Mr. Keyes may receive a higher bonus if he is so entitled pursuant to the terms of the Senior Bonus Plan. Each year, the bonus will be paid in the form of fully vested shares of Blockbuster class A common stock (the “Common Stock”).
what i dont like is when i called about the price increase to customer service they wouldnt give me an answer (that was rude)i think that a valued customer deserves an explanation.
but when it all comes down to it blockbuster just want to stay in the top of the charts.
but i dont know why they want to bet netflix and others so bad cause they know that they are the #1 rental place in america.
all they have to do to improve is to stop raising prices and they will have more customers as a member or people will just go else were.
i know i will go any where that just doesnt raise prices i can deal with the other cons.
because of this surprise price change iam trying out netflix see ya blockbuster.