11/17/2010
Blockbuster's Blu-Ray Disc Rental Figures May Be Flawed
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.
6/17/2009
Blockbuster Store Check-In Delays Mysteriously Vanish
There are three main theories. 1) Blockbuster had some strange system glitch that coincidentally allowed them to ship fewer DVDs while still charging full subscription fees. 2) Blockbuster was experimenting with a new throttling technique, and realized the horrifying potential for a massive class action lawsuit. 3) Blockbuster was experimenting with a new throttling technique, and the outcry from subscribers and Blockbuster store managers was too great to be ignored.
The Blockbuster store managers had to hate the check-in delay problem. Blockbuster Online requires each subscriber with issues about store DVDs to call that store's manager during business hours. The managers must have resented getting calls from angry Blockbuster Online subscribers about check-in delays. Every time a subscriber called the store manager about a check-in delay, that manager would have to log into the store's computer system, confirm the DVD had been checked in, and then offer a variety of explanations about why Blockbuster Online's system was out of sync with the store's computer system. This had to be an irritating waste of time for the managers, especially since these calls only consumed the store's resources and generated no revenue.
Blockbuster needs to explain what was going on with the check-in delays. Regardless of whether the delays were due to system problems are deliberate actions, some Blockbuster Online subscribers were inconvenienced during this time and did not receive the full benefits of their subscriptions. Blockbuster needs to compensate the affected subscribers in some way to make up for the delays. Several DVD coupons or a temporary subscription plan upgrade might be sufficient.
Have you experienced any strange store check-in delay problems? If so, post the details here.
5/27/2009
Blockbuster Store Returns May Sit in Queue's At Home Section Indefinitely
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.
5/21/2009
Blockbuster Takes Throttling to the Next Level with In-Store Check-In Delay
Under Blockbuster's current rules, a Blockbuster subscriber must return an in-store exchange DVD before Blockbuster Online will ship another DVD to the subscriber. The problem is that if a subscriber returns a store DVD to the store, has that DVD properly scanned in at the store, and the Blockbuster Online system does not update properly, the returned DVD will incorrectly appear to not be checked in. Even though, the DVD was properly scanned in at the store, the online system may not reflect the return, and that DVD will unfairly occupy a Blockbuster Online shipping slot until it clears the system. Every day that shipping slot appears to be occupied is a day Blockbuster Online will not ship another DVD.
The real problem is that the subscriber is expected to wait twenty-four hours for the returned DVD to clear before reporting the problem. Even then, Blockbuster Online wants the subscriber to personally contact the store by phone to fix the problem. Of course, Blockbuster store hours are limited, and most problems cannot be addressed until the early afternoon, long after Blockbuster Online has selected all DVDs to be shipped that day. This means that a subscriber can return a store DVD to the store, and Blockbuster can use their computer system to easily add a day or two to the turnaround process. This is assuming the Blockbuster subscriber is diligent about maintaining his or her account. A subscriber who does not check his or her account frequently, could see this shipping slot go occupied indefinitely.
Just last week, returned DVDs were able to clear the system in less than an hour in many cases. Why is it suddenly taking Blockbuster up to twenty-four hours to clear DVDs? Slower turnarounds benefit Blockbuster by making it possible to send out fewer DVDs to subscribers.
In short, Blockbuster appears to either be having major system problems or is engaging in intentional shipping delays to throttle subscribers. Regardless, watch your account vigilantly, report problems at the first sign of trouble, and be relentless in your dealings with customer service until they fix your issue. If you are paying a subscription fee to Blockbuster, you deserve to receive the benefits for which you are paying. Blockbuster has no right to hide behind system delays that coincidentally increase profits on the backs of subscribers.
If you think there is a possibility you may want to sue Blockbuster or simply demand a refund from Blockbuster or your credit card company, keep records of your rental history and all contacts with Blockbuster. You will need this information to support your claim and demonstrate Blockbuster's breach of contract.
12/24/2008
Could Redbox Mean the End for Blockbuster?
Blockbuster has partially stayed alive by offering an online service comparable to Netflix. Like Netflix, Blockbuster’s online service is not very good and has angered numerous subscribers with dishonest business practices. The online service has proven to be a flawed venture for Blockbuster and will probably be discontinued or significantly overhauled at some point.
Blockbuster’s final hope for survival has been their online stores. Independent video rental stores have been scarce for several years now, so Blockbuster has been one of the few place people can visit to personally rent DVDs. Redbox may be the company who is about to change that.
Redbox (www.redbox.com), a company started in 2002 by McDonald’s Ventures LLC and now equally owned by Coinstar, poses a tremendous threat to Blockbuster’s stores. Redbox is a network of over 10,000 DVD rental vending machines (or kiosks), which are located at McDonald’s restaurants and drug stores around the nation. The vending machines are normally accessible 24 hours per day, every day of the year. They offer mostly new and recent releases for $1 per night. Basically, anyone with a credit card can go find a recent DVD at any time of the day for just $1.
The one thing Blockbuster had going for it was allowing for people to spontaneously rent new releases. Redbox offers the same option in more locations, with better hours, and at a much better price. Why would anyone drive four miles to rent The Dark Knight for $3 to $5 during rigid store hours, when one can simply drive two miles to rent the same DVD for $1 any time of the day?
If Blockbuster management is even remotely competent, they have begun plans to install competing DVD vending machines all over the country. If Blockbuster is not in even competition with Redbox by the end of 2009, Redbox and similar companies like The New Release (www.thenewrelease.com) and DVDPlay (www.dvdplay.com) are likely to tear into Blockbuster’s market share and drive the company down the road to obsolescence—a trip that is long overdue.
12/23/2008
Video Games Are a Bad Play for Blockbuster
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.
6/16/2008
The Mystery of the Vanishing In-Store Rental E-Coupon
Some of you had been getting two coupons for free in-store rentals each month. Others were getting just one per month. Others were probably getting something else or nothing at all. Regardless of what you have been getting in the way of Blockbuster e-coupons, you are probably about to get less.
As part of what Blockbuster has called a service “enhancement,” many subscribers will be losing a monthly e-coupon. Those with two coupons might be downgraded to one. Those with one might be downgraded to zero. Those have not been getting e-coupons will probably get shafted some other creative way.
The bottom line is that Blockbuster Online is reducing benefits for some subscribers by withholding e-coupons. These unlucky subscribers will be paying the same fee for fewer benefits.
8/03/2007
Blockbuster’s Not So Total Access
Blockbuster Online is changing their pricing structure. The most significant feature of this new structure is placing strict limits on free in-store exchanges for online subscribers.
Under the new plan, regular Total Access subscribers will be limited to five free in-store exchanges per month. Once the subscriber reaches the allowance for the month, the subscriber can then pay a discounted price for each additional in-store exchange. (This is unconfirmed, but it appears additional in-store exchanges will cost approximately $1.99 per DVD.)
Those Blockbuster customers wishing to have unlimited free in-store exchanges will need to subscribe to Total Access Premium. The Premium plan is an additional $7 per month.
What do you think about this new Blockbuster pricing structure? How does the new structure affect you? If you are an existing Blockbuster Online subscriber, did Blockbuster automatically grandfather you into Total Access Premium, or did you get downgraded to a lesser plan like Total Access?
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