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Blockbuster: Drops DVD Rental Prices Again.

 
 
One-Shot Scot
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Posts: n/a
 
      10-20-2004
If you lose money on every subscriber, can you make up the deficit by
increasing the number of subscribers? It will be interesting to see who
is left standing after the price war ends.

But wait a minute! The lower Netflix prices are NOT available to me and
I am a 2-year plus subscriber! Here are my options -- and there is no
$17.99, 3-out plan:

*** *** ***

Membership Programs You may change your membership to any of the
programs listed below. All program changes begin with your next month of
service. To see when your next month of service begins or the see your
current membership terms, visit your Rental Terms.

8-at-a-time for $49.99
Unlimited rentals - up to 8 movies out at a time for a flat monthly
fee of $49.99.

5-at-a-time for $33.99
Unlimited rentals - up to 5 movies out at a time for a flat monthly
fee of $33.99.

3-at-a-time for $21.99
Unlimited rentals - up to 3 movies out at a time for a flat monthly
fee of $21.99.

2-at-a-time (4 rentals a month) for $14.99
Up to 4 rentals a month - up to 2 movies out at a time for a flat
monthly fee of $14.99. Learn More.

*** *** ***

OCT. 18 | It took Blockbuster Video only 24 hours to respond to
Netflix's surprise move last week of slashing the price of its basic
online subscription package.

Late on Friday, Blockbuster announced it will cut the price of its
all-you-can-rent, three-out plan from $18.99 to $17.49 beginning Oct.
25.

One day earlier, Netflix surprised analysts and investors by announcing
a price cut from $21.99 to $17.99, sending its share price plunging.

In a conference call with analysts, Netflix CEO Reed Hastings pointed to
the possibility that online retail giant Amazon.com would launch its own
DVD subscription service, bringing yet more competition to an
increasingly crowded market niche.

Amazon officials said no such announcement is imminent, but didn't close
the door on a future move.

Even without new competition from Amazon, however, Netflix had been
under pressure from Blockbuster, which introduced its online service
with the clear intent of competing with Netflix on price.

Blockbuster launched its service in September, priced at $18.99 just
shortly after Netflix had raised its price from $19.99 to $21.99.

In responding quickly to Netflix's price cut, Blockbuster CEO John
Antioco made it clear the bricks-and-mortar giant intends to maintain
its price advantage.

"We are determined to do whatever it takes to be the leader in the
online rental space," Antioco said. "With this lower online price point
and new consumer incentives, we intend to drive customer awareness and
new subscriptions for our online service."

Blockbuster also announced that the two free in-store rental coupons its
online subscribers receive each month will now be good for videogame
rentals as well as movie rentals.

Additionally, Blockbuster Online customers will begin receiving coupons
good for other in-store Blockbuster products and programs, including
discounts on new, used and traded movies and videogames.

"We've been extremely pleased with the launch of Blockbuster Online, and
in fact, in the first six weeks since the service launched, we've signed
up more subscribers than Netflix signed up in its first year and a half
of existence," Antioco boasted. "Additionally, we are confident that we
will end this year with more subscribers than Netflix had after its
first three and a half years."

http://www.videobusiness.com/article...5&catType=NEWS


 
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Bob Schoenleber
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Posts: n/a
 
      10-20-2004
One-Shot Scot wrote:
> If you lose money on every subscriber, can you make up the deficit by
> increasing the number of subscribers? It will be interesting to see who
> is left standing after the price war ends.
>
> But wait a minute! The lower Netflix prices are NOT available to me and
> I am a 2-year plus subscriber! Here are my options -- and there is no
> $17.99, 3-out plan:
>
> *** *** ***
>
> Membership Programs You may change your membership to any of the
> programs listed below. All program changes begin with your next month of
> service. To see when your next month of service begins or the see your
> current membership terms, visit your Rental Terms.
>
> 8-at-a-time for $49.99
> Unlimited rentals - up to 8 movies out at a time for a flat monthly
> fee of $49.99.
>
> 5-at-a-time for $33.99
> Unlimited rentals - up to 5 movies out at a time for a flat monthly
> fee of $33.99.
>
> 3-at-a-time for $21.99
> Unlimited rentals - up to 3 movies out at a time for a flat monthly
> fee of $21.99.
>
> 2-at-a-time (4 rentals a month) for $14.99
> Up to 4 rentals a month - up to 2 movies out at a time for a flat
> monthly fee of $14.99. Learn More.
>
> *** *** ***
>
> OCT. 18 | It took Blockbuster Video only 24 hours to respond to
> Netflix's surprise move last week of slashing the price of its basic
> online subscription package.
>
> Late on Friday, Blockbuster announced it will cut the price of its
> all-you-can-rent, three-out plan from $18.99 to $17.49 beginning Oct.
> 25.
>
> One day earlier, Netflix surprised analysts and investors by announcing
> a price cut from $21.99 to $17.99, sending its share price plunging.
>
> In a conference call with analysts, Netflix CEO Reed Hastings pointed to
> the possibility that online retail giant Amazon.com would launch its own
> DVD subscription service, bringing yet more competition to an
> increasingly crowded market niche.
>
> Amazon officials said no such announcement is imminent, but didn't close
> the door on a future move.
>
> Even without new competition from Amazon, however, Netflix had been
> under pressure from Blockbuster, which introduced its online service
> with the clear intent of competing with Netflix on price.
>
> Blockbuster launched its service in September, priced at $18.99 just
> shortly after Netflix had raised its price from $19.99 to $21.99.
>
> In responding quickly to Netflix's price cut, Blockbuster CEO John
> Antioco made it clear the bricks-and-mortar giant intends to maintain
> its price advantage.
>
> "We are determined to do whatever it takes to be the leader in the
> online rental space," Antioco said. "With this lower online price point
> and new consumer incentives, we intend to drive customer awareness and
> new subscriptions for our online service."
>
> Blockbuster also announced that the two free in-store rental coupons its
> online subscribers receive each month will now be good for videogame
> rentals as well as movie rentals.
>
> Additionally, Blockbuster Online customers will begin receiving coupons
> good for other in-store Blockbuster products and programs, including
> discounts on new, used and traded movies and videogames.
>
> "We've been extremely pleased with the launch of Blockbuster Online, and
> in fact, in the first six weeks since the service launched, we've signed
> up more subscribers than Netflix signed up in its first year and a half
> of existence," Antioco boasted. "Additionally, we are confident that we
> will end this year with more subscribers than Netflix had after its
> first three and a half years."
>
> http://www.videobusiness.com/article...5&catType=NEWS
>
>

As of 11/1 you'll be changed to the $17.99 plan. A look at the FAQ on
their web page or a quick toll free call to customer service would have
told you that.

Bob

--
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One-Shot Scot
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Posts: n/a
 
      10-20-2004
"Bob Schoenleber" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...

<<As of 11/1 you'll be changed to the $17.99 plan. A look at the FAQ on
their web page or a quick toll free call to customer service would have
told you that. Bob>>


Thanks for this information.

I couldn't find the FAQ, but I located this. Since I am on the 5-out
plan, my new monthly rate will be $29.99 -- a savings of $4 per month:

Q: What are the details of your upcoming price decrease? When will my
rate change?
A: We are lowering the prices on all subscription programs effective
November 1st, 2004.
Our new pricing is as follows:

2-at-a-time, 4 rentals per month: $11.99/month
3-at-a-time Unlimited: $17.99/month
5-at-a-time Unlimited: $29.99/month
8-at-a-time Unlimited: $47.99/month

We will automatically change your billing rate to the new lower price at
the time of your November billing cycle. You do not need to contact us
to get the new, lower rate.

All members who finish their Free Trial period on or after November 1st,
2004 will automatically receive the new, lower price.


 
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Zimmy
Guest
Posts: n/a
 
      10-22-2004
If they want me back as a customer, they need to lower their store's rental
price.
I'm a Netflix guy but I would still use BB for impulse rentals.

"One-Shot Scot" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> If you lose money on every subscriber, can you make up the deficit by
> increasing the number of subscribers? It will be interesting to see who
> is left standing after the price war ends.



 
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