The Dish on Blockbuster Online Under Dish Network

When Blockbuster first got into the DVD-by-mail business in 2004, the service was largely a joke for the first several months. Blockbuster Online would ship incorrect DVDs, takes days to ship DVDs, etc. Blockbuster was having a hard time getting their online business going, and it was obvious.

Blockbuster Online improved in 2005 and eventually was a pretty good value. The Blockbuster Online service continued to be a pretty good value through most of 2006 and 2007. The real problems did not begin until late-2007 when Blockbuster began throttling the flow of DVDs to customers using a wide, ever-changing array of delay tactics.

Through much of 2008, 2009, and 2010, Blockbuster engaged in all sorts of bizarre and unsavory behavior such as rarely shipping DVDs on certain days, taking days to process DVDs, making subscribers stack the tops of their queues with "Available" DVDs, failing to register in-store returns, etc. In short, Blockbuster Online was back to being a joke--only this time, the joke wasn't funny. The service was just awful, absolutely awful. It was a horrible value, a major headache for consumers, and it was probably one of the main reasons Blockbuster wound up finally going bankrupt in 2010. Blockbuster not only deserved to go bankrupt, the company was out-of-control, and it needed to go bankrupt.

In April 2011, Dish Network bought Blockbuster at auction, and that was when things began to turn around a little. Here we are a few months later, and there is little to no evidence of Blockbuster Online blatantly throttling customers. Yes, Blockbuster Online has some substantial problems with availability, but the throttling is minimal or non-existent. For now, it appears Blockbuster Online is basically shipping DVDs when they should and not playing a lot of obvious, sleazy games with customers. This is most likely because Dish Network cannot afford to mistreat whatever few Blockbuster subscribers are left. In order to remain in the DVD rental business, Dish Network has probably decided to do nothing to trigger more customer defections from what is already a dangerously weak customer base.

Now, Blockbuster Online deserves no praise for shipping DVDs to subscribers as agreed. Blockbuster is just doing what they should have been doing all along. Since, however, Blockbuster Underground has been intensely critical of Blockbuster for at least a few years now, it is fair to make it clear that Blockbuster's DVD-by-mail service has improved remarkably since Dish Network took the reins of that deeply troubled company.

Please do not read this article as an endorsement of Blockbuster or any of its services. The Blockbuster name has been severely--perhaps permanently--tarnished by years and years of bad customer service in the stores and online. Millions of people hate the Blockbuster brand, and they have every right to do so. It will take years to rebuild trust among millions of alienated consumers.

Maybe the new Blockbuster is going to be a good company under Dish Network, but it is also possible Blockbuster could suddenly revert to its old ways. Only time will tell. If Blockbuster starts messing around again and begins taking advantage of customers, Blockbuster Underground will go right back to exposing every single wrong thing Blockbuster does. For now, on Blockbuster Underground, Dish Network is going to get a fair chance to prove they can and will deliver on what they promise to Blockbuster customers. Stay tuned.

Blockbuster: Please, Please Change Your Habits

Fast Company is running an article by Austin Carr about the problems with Blockbuster's new subscription-free DVD-by-mail program. Click the link below to read the article.

"Blockbuster: Please, Please Change Your Habits"

Blockbuster Online's Processing Decoy Tactic

It appears Blockbuster Online has begun favoring a particular throttling tactic. This one is the processing decoy tactic. Blockbuster will tie up your queue for an extra day by holding a DVD in Processing status overnight and then canceling shipment of the DVD the following morning. Here is an example of how it works.

1. On Monday morning, you have an empty slot in the At Home section of your Blockbuster Online queue.
2. Later that day, Blockbuster will move one of your most desired DVDs (normally one with an Availability status of Long Wait or Very Long Wait) to the empty slot in the At Home section of your queue. This DVD will be tagged as Processing.
3. The DVD will sit in your queue for the rest of the day and into the night with the status of Processing.
4. The next morning, the DVD will have mysteriously been moved from the At Home section of your queue back down to its original position in your list of desired DVDs. This leaves an empty slot in the At Home section of your queue.
5. Later that day, the empty slot will likely be filled with a different DVD from you queue. That replacement DVD is likely to ship that afternoon.

This throttling tactic is bad for you for two reasons. 1) The delay automatically adds at least one day to your turnaround, reducing the number of DVDs you can receive during the subscription month and thereby reducing the value of your subscription. 2) By holding one of your most desired DVDs in Processing status, Blockbuster is discouraging you from renting that title from another source for at least one day. You will probably not rent a DVD from a Blockbuster store, Redbox, etc. if you believe Blockbuster Online will be shipping that DVD to you in the immediate future.

Blockbuster might think they are being clever with this tactic, but they are only annoying subscribers. We all know Blockbuster Online generally knows whether it can ship a particular DVD or not. Those DVD envelopes and sleeves are barcoded and tracked through their inventory system.  Yes, sometimes returned DVDs arrive damaged or in the wrong sleeves or envelopes, but generally Blockbuster knows what DVDs it has in its shipping centers.  If Blockbuster is going to throttle subscribers, Blockbuster needs to stop playing games and just be straightforward with it.

Come on, Blockbuster, don't be such a tease. Just leave those shipping slots empty until you are satisfied with how much extra money you have milked from the subscribers. Irritating your last few loyal customers is not a good way to pull yourself out of bankruptcy.

Blockbuster's Blu-Ray Disc Rental Figures May Be Flawed

If you are a Blockbuster Online subscriber and you exchange your online rentals at stores for store rentals, you may have noticed that, sometimes, your store DVD rentals show up as Blu-ray discs in the At Home section of your Blockbuster Online queue. This commonly occurring error does not necessarily prove an inventory flaw; however, the error strongly suggests that Blockbuster inaccurately records some store DVD rentals as Blu-ray disc rentals.

If you do a lot of store exchanges and typically choose the DVD format, look in your Blockbuster Online rental history. There you may find several titles tagged with the [Blu-ray] tag. Depending on your rental preferences, you may notice that few or none of these supposed Blu-ray discs you rented from Blockbuster stores were really Blu-ray discs. They were just improperly tagged DVDs. Even more curious, this error seems to occur disproportionately often among new releases. Perhaps this is just a recent problem affecting only newer titles.

What is uncertain is whether or not Blockbuster is tagging discs inappropriately on purpose for some reason or if this is just another example of Blockbuster's incompetence. Regardless, many DVDs are being tagged incorrectly as Blu-ray discs in at least one system. If these errors are being carried over into other systems, such as the systems that provide data for inventory reporting and sales reporting, Blockbuster's numbers could be showing dramatically inflated figures for Blu-ray disc rentals.

There do seem to be stacks of unwanted Blu-ray discs just sitting on the shelves at Blockbuster stores. The excessive Blu-ray disc supply could stem from improper inventory reporting, or the improperly tagged discs could be concealing that Blu-ray discs are not terribly popular among Blockbuster store customers. Regardless, Blockbuster needs to get their act together and consistently tag DVDs as DVDs and Blu-ray discs as Blu-ray discs in all of their systems.

Imagine if you lost a store DVD that was electronically mislabeled as a Blu-ray disc. Would the store charge you the lower DVD price or the higher Blu-ray disc price? That could be an unpleasant surprise. If you lost the physical disc, you would have no proof it was a DVD, and you would be at the mercy of Blockbuster's inaccurate computer system.

Blockbuster Cops out with Partial Fulfillment

Since late-September, Blockbuster has become more aggressive with one of their more cheesy throttling tactics. For some reason, the minds at Blockbuster have assumed they can get away with shipping fewer DVDs to subscribers by partially filling empty queue slots. Blockbuster may not ship all of the DVDs they are supposed to send to you, but they will at least send one or two, so you cannot accuse them of letting your account sit idle for days at the time.

Here is how Blockbuster's partial fulfillment works. On Monday, you have three empty queue slots, but nothing ships that day. On Tuesday or Wednesday, Blockbuster ships two DVDs to you. These DVDs have been sent from far enough away that they will almost never arrive until Thursday or Friday. If you are lucky, Blockbuster will ship the third DVD to you by Friday, but they might hold off on shipping until the following Monday or Tuesday.

Here is the important thing to realize: By trickling out partial shipments, Blockbuster will have the ability to claim--at almost any given time--they either recently shipped something to you or will be shipping something to you soon. At almost no point is Blockbuster living up to the terms of the subscription agreement you have with them. Blockbuster is perpetually leaving one to three of your queue slots empty while hiding behind the illusion they are shipping DVDs to you on a regular basis.

Now, here's the deal. If you have three empty queue slots on Monday morning, Blockbuster should ship three DVDs to you by Monday afternoon. If Blockbuster does anything else, they are cheating you out of your subscription benefits. Just because Blockbuster ships a DVD to you on Tuesday, it does not mean they are absolved from sending another DVD to you for the next few days.

Do not let Blockbuster trickle out DVDs to you and con you into thinking you are getting the subscription benefits for which you are paying. When you complain to Blockbuster about delays and they try to appease you by telling you they just shipped a DVD to you, fire back with, "Okay, congratulations for partially living up to our agreement. Now what about the other DVDs you should have sent to me days ago? What is Blockbuster going to do to compensate me for this delay?"

Blockbuster Store Returns May Sit in Queue's At Home Section Indefinitely

Be aware that you must check the At Home section of your queue at least once per day. Blockbuster Online seems to have a system problem or be engaging in an intentional delay tactic that will allow a returned DVD to sit idly in the At Home section of your queue for multiple days.

Even if you personally return a store DVD to a Blockbuster store and call the manager of the Blockbuster store to confirm the DVD has been scanned into the system, the DVD can still sit in your queue and occupy a shipping slot indefinitely. Every day a returned DVD incorrectly remains in the At Home section of your queue is a day you are not able to fully benefit from your subscription. Please note that Blockbuster will continue to charge you the full subscription fee even if unnecessary shipping delays of this nature are Blockbuster's fault.

The best thing is to call Blockbuster at the first sign of any shipping delay. You can reach Blockbuster toll-free at (866) 692-2789. Blockbuster may ask you to wait twenty-four hours before reporting a delay, but this is a ridiculous request. Blockbuster's system should be able to update at least hourly. If their system updates less than that, they need to fix it.

Just Say No to Blu-Ray on Video Underground

Blu-ray is a ridiculous format, and you should not be wasting your money on it. When viewed on an excellent HD entertainment system, Blu-rays do offer better quality than DVDs, but the difference is just not enough to justify all of the expenses and costs associated with Blu-ray technology. Besides, the world is moving to fully digital downloadable content. Blu-ray and all other video discs will be nearly obsolete in the not-so-distant future. You can read more about why Blu-ray is a doomed format on Video Underground, an Underground Syndicate site, in “Just Say No to Blu-Ray.”

Blockbuster Gives Subscribers the Finger with the Delayed Weekend Delivery Tactic

The latest in a seemingly unending string of brazen delay tactics employed by Blockbuster Online is the Delayed Weekend Delivery Tactic. In this sneaky little scheme, Blockbuster limits shipping to at least some subscribers during the first part of the week to DVDs which are likely to spend long times in transit and not arrive until Friday or later. Here is an example of how this tactic works.

Bob returns all three of his online DVD rentals to a Blockbuster store on Sunday. As soon as the Blockbuster store clerk scans in those three DVDs at the counter, Bob will have three open slots in his queue. If Blockbuster were honoring their obligations to Bob, they would ship three new DVDs to him on Monday. When Blockbuster Online uses the Delayed Weekend Delivery Tactic, however, Blockbuster ships to Bob only DVDs from shipping centers outside of Bob’s standard shipping area. Since these DVDs travel greater distances, they take longer to arrive at Bob’s house. The result is that Bob may not receive his new DVDs until Friday or later. Since Blockbuster’s last shipping day of the week is Friday, Bob will find it impossible to return his DVDs to a Blockbuster store in time to have more DVDs shipped that week. The situation forces Bob to wait until the following week for any more DVD shipments. Unfortunately, Blockbuster will, once again, delay Bob’s DVD shipments during that following week. Essentially, Blockbuster has made it virtually impossible for Bob to receive more than three DVDs from Blockbuster Online in any given week.

If your DVDs are consistently not arriving until Friday or later, Blockbuster Online is probably throttling the flow of DVDs to you using the Delayed Weekend Delivery Tactic. Even though, you are paying full price for a full subscription, Blockbuster has cut your benefits roughly in half.

Blockbuster Stoops to New Low with Friday Sleeper Shipping Delay Tactic

Just when we think Blockbuster Online cannot get any worse, they surprise us with another delay tactic, which ultimately results in a reduction of subscriber benefits. The latest stunt in a long line of repugnant and sleazy corporate behavior is Blockbuster’s new Friday shipping delay. We will call this the Friday Sleeper shipping delay tactic. In this scheme, Blockbuster Online leaves one shipping slot in a subscriber’s queue open almost all week and then ships out a DVD to fill that open slot on Friday afternoon.

Here is an example of how this Friday Sleeper shipping delay tactic appears to work. Blockbuster Online subscriber, Bob returns Online DVDs A1, B1, and C1 to a Blockbuster store on Friday, January 9. The store clerk scans in the DVDs, immediately opening all three shipping slots in Bob’s queue. Now if Blockbuster were living up to their end of the subscriber agreement, they would ship out three DVDs (A2, B2, and C2) on Monday, January 12. In this scheme, however, Blockbuster Online will wait until Wednesday, January 14 to fill only two of the three open queue slots by sending out DVDs A2 and B2. Blockbuster Online will then leave the one remaining queue slot open until the end of the shipping week and then finally ship out DVD C2 on Friday, January 16.

In this scenario, Bob gets hit with the standard Wednesday shipping delay plus the new Friday Sleeper shipping delay tactic. Bob will have to wait nearly a week to receive the first two DVDs (A2 and B2), and he will have to wait more than a week to receive the third DVD (C2). He should have received all three DVDs in just a few days, so Blockbuster has successfully and dramatically reduced the number of DVDs Bob can receive during each month.

At this point, it is not clear if Blockbuster is using this Friday Sleeper delay tactic to throttle all of its customers or just its heavy users. Regardless, this is a blatant abuse of the Blockbuster shipping system and a likely breach of contract. Make sure to keep careful records of your DVD rentals and your interactions with Blockbuster. Blockbuster appears to be willing to do just about anything to systematically minimize the benefits of some subscribers. There is bound to be a class action lawsuit at some point. If so, having good records could be to your benefit. If you do take any sort of action against Blockbuster in the future, documentation will be your friend.

Video Games Are a Bad Play for Blockbuster

You have probably noticed that since the fall of 2008, Blockbuster has been making a major push to transform their stores to video game outlets. Shelf space for movies has decreased greatly and has been dedicated to the display of video games, consoles, controllers, and accessories.

Blockbuster has been renting out video games for years, and this always made sense, because there are not many game rental places around. Blockbuster’s move toward retail game sales, however, is puzzling. Many, many major retailers sell video games and gear, and it appears Blockbuster hopes to compete with these retailers. Some of these retailers are very big players. Why would Blockbuster want to sell products, which are readily available at stores like Walmart, Target, Best Buy, etc. for low prices? Furthermore, Blockbuster is competing with untold numbers of online retailers who can offer the very same products at lower prices, low or no shipping charges, and no sales tax. Since most gamers are very computer literate, ordering games online is second nature to a large portion of them. What makes Blockbuster think they can compete in such a competitive arena, and why would anyone buy video games and equipment from a big corporation with tiny retail stores?

There is a more complex long-term marketing problem here. If Blockbuster happens to get their movie rental customers hooked on video games, these new gamers will have less time and money to spend on movies. A movie-buying consumer will probably become bored with a $20 DVD after watching it for about four hours ($5 per hour of entertainment), but today’s video games are so advanced and complex, a person could easily spend a hundred hours playing a $50 game before getting bored with it ($0.50 per hour of entertainment). Why would Blockbuster want to convert movie customers who might spend $5 to purchase an hour of entertainment to gamers who are probably used to paying $0.50 for an hour of entertainment? The problem is even worse when looking at rentals. A movie watcher who wants to rent twenty hours of entertainment will need to rent about five DVDs. If that person becomes a gamer, one game rental will easily fill twenty hours with entertainment.

Blockbuster’s video game outlet transformation plan just does not add up. Blockbuster may be greedily going offer the booming market of video game sales, but they may be shooting themselves in the foot. Blockbuster needs to retain the movie fans who have been keeping them in business all these years, and Blockbuster certainly has no business competing in a market, in which they are way out of their league.

DVD Rationing: Blockbuster's One-DVD-per-Day Tactic

During the last couple of weeks, a new trend seems to have begun at Blockbuster Online. Curiously, Blockbuster seems to be shipping one DVD per day to some subscribers, regardless of whether they have one, two, or three empty queue slots.

For example, Blockbuster Online subscriber, Bob returns all of his DVDs to a Blockbuster store on Monday night. Even though Bob will have three empty queue slots for Tuesday morning shipping, Blockbuster might ship just one DVD to him on Tuesday. On Wednesday, Bob will still have two empty queue slots, but Blockbuster may ship only one DVD to him on that day. Finally, on Thursday, Blockbuster may get around to shipping out a third DVD to Bob.

This is not how the Blockbuster shipping system is supposed to work. Blockbuster is supposed to ship DVDs to you the day after you return each DVD. Blockbuster is not supposed to let your queue slots sit vacant for days at the time. Just because they try to appease customers by trickling out DVDs one at a time, it does not mean Blockbuster is released from the obligation to fill empty queue slots.

This rationing of DVDs is yet another way Blockbuster is trying to deceive customers into believing the company is living up to the obligations of their plan. Do not fall for this trick. If you have returned all three of your DVDs, you have three empty queue slots, and Blockbuster is supposed to ship three DVDs to you the following day. Anything less is a potential breach of contract in the form of failure to deliver purchased services as agreed.

Blockbuster’s Availability Excuse Is Ridiculous

When Blockbuster fails to ship a DVD to you, their favorite excuse is that you do not have enough “Available” titles in your queue. This is a ridiculous and insulting argument. Title availability is clearly an inventory issue, making it Blockbuster’s responsibility. As a customer, Blockbuster’s lack of DVDs should not be your burden. You have no control over how many copies of a title Blockbuster has in stock. As a paying customer, you should be making the demands and Blockbuster should be supplying those demands.

If Blockbuster offers a title and a lot of people want to see it, Blockbuster should not skirt around the problem by making subscribers wait for weeks or months. Blockbuster should simply purchase more copies of that popular title. What’s the problem with that? Blockbuster can easily use queue data to gauge subscriber demand. If people are waiting months to see a particular title, is it not reasonable to assume this is a title that interests a significant number of subscribers? Shouldn’t Blockbuster be focusing on stocking the titles their customers want to see?

The next time you complain to Blockbuster about failure to ship a DVD to you and Blockbuster tries to put the blame on you for not having enough “Available” DVDs in your queue, tell them availability is Blockbuster’s problem not yours. Tell the customer service representative to go upstairs and wake up the people in the Purchasing Department so they can take care of Blockbuster’s ridiculous inventory problems, which happen to be limiting the subscriber benefits for which you are paying.

Distant Shipping for Popular New Releases

If you have a popular new title in your queue, do not be surprised if, when Blockbuster ships it, it takes an extra day or two to arrive in your mailbox. It appears that Blockbuster sometimes ships popular new releases from distant shipping centers.

An innocent explanation may be that, when Blockbuster runs low on a particular title in one market area, they use their subscriber distribution system to transfer copies of that title from an area where the supply is abundant. This is an inexpensive way for Blockbuster to move DVDs around the country, but this method does mean more waiting for subscribers.

The good news is that you can get popular new releases from Blockbuster Online. Just be aware that if you have a new release in your queue and the status is “Short Wait” or worse, you may be waiting an extra day or two for that title to arrive after Blockbuster ships it.

Duplicate Title Notification Is Not Reliable

Under normal circumstances, if you rent a DVD from a Blockbuster store and that same title happens to be in your queue, a duplicate title notification should pop up on your computer screen the next time you log into your Blockbuster Online account. When you get the notification, you have the opportunity to delete the title from your queue or leave it there. You also have the option of having titles automatically deleted from your queue as you rent them.

This is a nice and convenient account feature, but use it with caution. This duplicate title notification is not reliable. It seems to work most of the time, but the software often misses some rentals and can mistakenly leave a title in your queue. The risk is that you could rent a title at a Blockbuster store and then have that same title shipped to you from your online account the next day. Assuming you do not want to watch the same title twice in a week, you will want to take some precautions.

When you get home from your Blockbuster store, log into your online account. Hopefully, you will get a duplicate title notification, and you can delete the title from your queue. Otherwise, you will need to manually delete the duplicate title from your queue. If you do not make sure the title is out of your queue, there is a very high chance the duplicate title will be shipped to you before you realize the mistake.

Very Long Wait Could Mean Months or Never

If you have any DVDs in your Blockbuster queue tagged as "Very Long Wait," do not be surprised if Blockbuster takes months to ship them to you. Blockbuster defines "Very Long Wait" DVDs as those that might take six weeks or longer to ship; however, the key to this definition is the "or longer" part. "Or longer" may mean six weeks plus one a day or months.

Some "Very Long Wait" DVDs can sit in your queue for months and then suddenly convert over to "Coming Soon." Even worse, sometimes Blockbuster will remove these DVDs from your queue and explain the title is no longer available. In a sense, "Very Long Wait" can sometimes mean "Never."

Blockbuster needs to add another classification for DVDs that may take months to ship or never ship. Perhaps, Blockbuster needs to add a classification such as "Rare Title" or "Extremely Long Wait." If Blockbuster is going to keep a customer waiting for months to see a DVD, the company should just be up front about it. If more than three months pass before Blockbuster ships a DVD, they should email the customer to explain the delay and inform the customer about what Blockbuster is doing to fix the problem.

Monday Shipping Is Elusive at Blockbuster Online

A Blockbuster Underground test account began revealing some unusual activity in late 2007, and the problem has consistently persisted throughout early 2008. The problem is with the shipment of new DVDs on Mondays. Blockbuster used to almost always ship DVDs on Mondays. Now, however, it appears Blockbuster almost never ships out DVDs to at least some online accounts on Mondays.

The Blockbuster Underground test account commonly has multiple empty queue slots throughout most of each weekend and Monday. It has become standard that the earliest shipment of DVDs does not occur until Tuesday afternoon each week. This means that a queue slot may open on a Friday afternoon, and the replacement DVD will not arrive until Wednesday, Thursday, or later. This is a substantial delay. The absence of Monday shipping causes a significant decrease in the number of DVDs a customer can receive in a week. This delay must be very profitable for Blockbuster, but it is a substantial blow to the customer’s subscription benefits.

Are you experiencing similar problems with Monday shipping from Blockbuster Online? If so, please report it here. If this shipping trend is consistent, we may be on the verge of discovering a way that Blockbuster has managed to limit (or throttle) the flow of DVDs to some or all of its online customers.

Blockbuster Online Throttling

For those new to the world of DVD-by-mail, throttling is a practice where DVD-by-mail companies intentionally limit the flow of DVDs to subscribers who are on flat-rate subscription plans. That insidious, red industry leader invented the practice, but other companies have been accused of copying the greedy and sleazy tactic to maximize profits.

Are you a high-volume DVD renter and being throttled by Blockbuster Online? If so, please post the specifics here by clicking on Comments.

Make sure to include details about your subscription plan, past and current turnaround times, quantity of online DVDs per month, and any other details that show evidence of an intentional throttling pattern at Blockbuster Online.

Please note that slow service alone does not necessarily indicate throttling. Also, if you were not consistently receiving at least four online DVDs per week at some point, you have never been a high-volume renter and probably have not used your account enough to witness a substantial throttling trend.