The End of Late Fees...Yeah, right.

[dhjenkins]

I'm sure everyone's seen the Blockbuster commercial about 'the end of late fees'. When I saw it, the phrase 'an extra day or two' caught my attention, so I decided to check out the actual details.

Here's the fine print; hopefully this saves someone from finding out the hard way...

(from the site)
"What are the full movie and game rental terms now that BLOCKBUSTER® has stopped charging late fees?
A: Movie and game rentals are due back at the date and time stated on the transaction receipt. There is no additional charge if a member keeps a rental item beyond the pre-paid rental period. However, if a member chooses to keep a rental item more than a week after the end of the rental period, Blockbuster will automatically convert the rental to a sale on the eight (8th) day after the end of the rental period. Blockbuster will charge the membership account the selling price for the item in effect at the time of the rental. The selling price will be discounted by the amount of the initial rental fee paid by the member at the time of rental. If the member returns the item within 30 days of the sale date, Blockbuster will credit back to the membership account the amount previously charged to the member’s account or the member’s credit card, as applicable, for the selling price of the item, but the member will be charged a minimal restocking fee. All rental items must be returned to the proper BLOCKBUSTER® store. These rental terms are subject to change without notice at any time. Participating stores only. Additional membership rules apply for rentals. See participating BLOCKBUSTER store for details."

After reading that, the ad seems pretty misleading. I probably wouldn't think it so dishonest if they subtracted the original rental fee from the sale price and if the sale price was competative with local markets. However, seeing as how they already sell used DVD's at new DVD prices, I wouldn't be surprised to see their 'selling price' at $40 or higher per movie. I remember paying $80 to replace a VHS tape about 10 years ago, so it's not that far fetched - they calculated the price based on their cost PLUS the income it brought in, not just what they paid for it.

[jpratt]

I think that you will see blockbuster moving in the direction of selling more than rentals. They have got to be losing money on rentals and sellinge movies is a major profit center, Watch and see pretty soon they will have more for sale then for rent.

[dhjenkins]

That's probably why I have netflix - averages about a $1 a rental

[jpratt]

Blockbuster is about 1/4 mile from my home. I have both the unlimited movie and game pass. 2 movies and one game with unilimited amount of trades a month. My boys can go through 3 games in a weekend and if the weather is nasty out the wife and I might watch 6 movies a weekend. I think I pay like 20 for the movies and 30 for the games. We probably have seen just about every movie in the place but still rent about 20 movies a month. I thought about going to netflix but it is easier for my to drive down and pick 2 up, watch them then go back the same day and get two more.

[V6 Beast]

Originally posted by dhjenkins

After reading that, the ad seems pretty misleading. I probably wouldn't think it so dishonest if they subtracted the original rental fee from the sale price and if the sale price was competative with local markets.

If you read what you posted, they do subtract the rental price from the sale price they charge and they indcated that sell price would be whatever the current selling price is. ( I assume the price would be the same as for a used movie but it doesn't specifcally say that)

Actually I think their advertising is ok. They say in the ad if you need it for an extra day or two you can keep it and from what you posted it seems you can keep it 8 days without a charge. It looks like their details cover what they advertise pretty well and it is still better than the Hollywood I use where they charge you a whole another 5 days for being 1 day late.

Sully

[Scott Atk]

I'm thinking along the same lines as Sully. Seems like a pretty good deal to me.

[Reaper]

i just returned a movie 5 days late and did not have a late fee.


i like it.

[dhjenkins]

Originally posted by V6 Beast
If you read what you posted, they do subtract the rental price from the sale price ...

'Doh!

[ViciousV6]

Looks like a good deal to me. If you wanna keep the movie longer than a week, you should be buying the damn thing! And the "selling price" they charge is a lot more than what you'll pay at WalMart. It has nothing to do with the income the movie rentals bring in. Video stores pay much higher prices for each copy of VHS/DVD they purchase to have the licensed right to rent the videos. They can't run down to WalMart and buy a bunch of copies of some movie, then box them up and put them on the rental shelves. That is illegal. The price they will charge you is what they paid for the VHS/DVD, which includes licensing, etc... they can run from $40-50, all the way up past $100!