Blockbuster raising prices for service

Vikingod · Dec 21, 2007, 04:16 PM

Source: Yahoo!
_____________
Blockbuster Inc., which has been losing money on online movie orders, is boosting prices of its DVD-by-mail service for new customers and some existing ones by up to 40 percent.

The movie-rental giant began notifying customers of the increases — and some price cuts — early Thursday. The hikes of $2 to $10 will take effect next week and caused an immediate buzz on Internet boards.

The immediate beneficiary of the move was rival Netflix Inc. — its shares jumped more than 9 percent. Blockbuster shares barely budged.

Blockbuster declined to say how many of its 3.1 million online subscribers are facing rate increases.

Spokeswoman Karen Raskopf also declined to disclose which current customers will see price hikes other than saying, "We are taking into account the profitability of individual subscribers."

Vikingod · Dec 21, 2007, 04:16 PM

The nail in the coffin...

**kris23** · Dec 21, 2007, 04:19 PM

that aint right.....

calidan · Dec 21, 2007, 04:43 PM

I've never seen the benefit of renting from Blockbuster. I rent from Netflix so I don't have to goto the store. If Blockbuster wants to compete with Netflix then they need to do either online or the store. Its costing them to much to do both.

swimtech · Dec 21, 2007, 05:30 PM

Shoot, and we just went through the latest increase to $24.95 (from 19.95, I think - my wife handles this...) this past month!

It is extremely convenient with a store right here in town, but ours is set to increase by $10.00 a month. Gonna have to contemplate the worth of it...

Customgamer1 · Dec 22, 2007, 04:38 PM

When I saw this news I really think it's odd.

OK blockbuster is in way deep and will be closing up in a few years and the plan to stay alive is to increase the rates?

I would have guessed to increase sales and get more people to use your service it would make more sense to lower the rates and hope you increase how many people sign up and in turn hope that would make you more money than the amount of people leaving and going to Netflix after finding out how much of a rip off it is.

I guess thats just my idea since they have to try something to get them out of the hole and increasing the rates are not going to help at all, but the guys down at blockbuster must know something else lol...

Dec 21, 2007, 04:16 PM	#1
Vikingod Int'l Fish Liaison Join Date: Jul 2004 Location: By the light of lamp I sit and type... Posts: 16,197 Rep Power: 112 System Specs	Blockbuster raising prices for service Source: Yahoo! _____________ Blockbuster Inc., which has been losing money on online movie orders, is boosting prices of its DVD-by-mail service for new customers and some existing ones by up to 40 percent. The movie-rental giant began notifying customers of the increases — and some price cuts — early Thursday. The hikes of $2 to $10 will take effect next week and caused an immediate buzz on Internet boards. The immediate beneficiary of the move was rival Netflix Inc. — its shares jumped more than 9 percent. Blockbuster shares barely budged. Blockbuster declined to say how many of its 3.1 million online subscribers are facing rate increases. Spokeswoman Karen Raskopf also declined to disclose which current customers will see price hikes other than saying, "We are taking into account the profitability of individual subscribers."

Dec 21, 2007, 04:19 PM	#3
kris23 Going Insane..... Join Date: Dec 2006 Location: Los Angeles Posts: 6,019 Rep Power: 131 System Specs	that aint right..... __________________ Hardwareheaven Super-Moderator Building a new computer system and not sure where to start? Click Here! last updated (5/18/11) Rosewill FUTURE case replaces CM 690 II with its greater interior length. Building a PC: Step by Step Guide Written by Kristopher Pedemonte and Nathan Marks-Forder Edited by Allan Campbell Questions or Comments? feel free to post them in the forums!

Dec 21, 2007, 04:43 PM	#4
calidan Frozen in Carbonite Join Date: Mar 2003 Location: Kansas City, MO Posts: 1,409 Rep Power: 0 System Specs	I've never seen the benefit of renting from Blockbuster. I rent from Netflix so I don't have to goto the store. If Blockbuster wants to compete with Netflix then they need to do either online or the store. Its costing them to much to do both. __________________ Steam Community :: ID :: calidan "Don't try to be like Jackie. There is only one Jackie.... Study computers instead." - Jackie Chan

Dec 21, 2007, 05:30 PM	#5
swimtech HardwareHeaven Extreme Member Join Date: May 2002 Location: North Carolina Posts: 4,040 Rep Power: 124 System Specs	Shoot, and we just went through the latest increase to $24.95 (from 19.95, I think - my wife handles this...) this past month! It is extremely convenient with a store right here in town, but ours is set to increase by $10.00 a month. Gonna have to contemplate the worth of it... __________________ It's not so much getting your way that matters or not - what matters is how you go about getting it.

Dec 22, 2007, 04:38 PM	#6
Customgamer1 Fell off the tech wagon Join Date: Jan 2004 Location: Wisconsin Posts: 2,273 Rep Power: 74 System Specs	When I saw this news I really think it's odd. OK blockbuster is in way deep and will be closing up in a few years and the plan to stay alive is to increase the rates? I would have guessed to increase sales and get more people to use your service it would make more sense to lower the rates and hope you increase how many people sign up and in turn hope that would make you more money than the amount of people leaving and going to Netflix after finding out how much of a rip off it is. I guess thats just my idea since they have to try something to get them out of the hole and increasing the rates are not going to help at all, but the guys down at blockbuster must know something else lol... __________________ Asus Laptop: 2.5 Intel Core 2 Duo, 4gigs DDR 2, Windows 7 64bit! Windows 7 > OSX!

Dec 21, 2007, 04:16 PM	Thread Starter #2
Vikingod Int'l Fish Liaison Join Date: Jul 2004 Location: By the light of lamp I sit and type... Posts: 16,197 Rep Power: 112 System Specs	The nail in the coffin...