Blockbuster: Drops DVD Rental Prices Again.

Discussion in 'DVD Video' started by One-Shot Scot, Oct 20, 2004.

  1. 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.asp?articleID=8885&catType=NEWS
     
    One-Shot Scot, Oct 20, 2004
    #1
    1. Advertising

  2. 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.asp?articleID=8885&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

    --
    <Remove XXX to reply via email>
     
    Bob Schoenleber, Oct 20, 2004
    #2
    1. Advertising

  3. "Bob Schoenleber" <> wrote in message
    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>>


    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.
     
    One-Shot Scot, Oct 20, 2004
    #3
  4. One-Shot Scot

    Zimmy Guest

    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" <> wrote in message
    news:...
    > 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.
     
    Zimmy, Oct 22, 2004
    #4
    1. Advertising

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