Blockbuster Doesn’t Get It
Clearly in response to the increasing popularity of Netflix, Blockbuster announced the Blockbuster Movie Pass allowing customers to rent two to three movies, for as long as they want, with no late fees, for a monthly fee of $24.99 and $29.99 respectively. The problem is, Netflix offers customers the rental of three movies, for as long as they want, with no late fees, with online ordering, often with next day delivery, including free return shipping, without people having to leave their houses for only $22 per month. Why would people choose to go to the store to rent their movies and go back to return them and pay $3 – $8 more for the inconvenience? Though Blockbuster does intend to begin offering an online option later this year, the cost will likely still be higher than Netflix (based on current pricing). Even though Blockbuster is the industry leader in movie rentals, they offer the same product as Netflix, but at a higher cost and less convenience. How does that make sense?
