The Brazen Return of Blockbuster Late Fees

If you have visited a Blockbuster store in the last few days, you have probably noticed that Blockbuster has managed to eliminate the seven-day return grace period and slip late fees back onto the menu. The fees are not called late fees, but that is what they are. At Blockbuster stores, you now have the option of renting videos on a daily or weekly basis. (Although, it should be pointed out that Blockbuster thinks a week is five days.)

The daily rentals are less expensive than the weekly rentals, but both rates come with extra charges for each day the renter keeps a DVD beyond its return date. The weekly rate gives the renter a few extra days to return a DVD, but since it costs a couple of dollars more, choosing the weekly rate is effectively the same thing as choosing to prepay late fees at a discounted rate.

This most recent pricing structure is essentially a return to Blockbuster’s original pricing structure where customers rented videos for short time periods and then paid late fees when the videos were not returned by the deadline. The only significant difference is that the new structure effectively allows customers to pay their late fees in advance. The old late fee structure is one of the main things that customers used to hate about Blockbuster. It seems that this new structure also has the potential for angering customers who are not diligent about returning videos on time.

The good news is that Blockbuster’s new pricing structure is fair, in that it allows customers who wish to rent DVDs for only one night to do so at a lower price while still allowing others to pay more to keep DVDs for days. The bad news is this structure presents a significant problem for Blockbuster. A few years ago, Blockbuster spent a lot of time and money bragging about the end of late fees. If late fees were so awful a few years ago, how are they perfectly fine now? Certainly, many customers are going to see through this hypocrisy.

Another problem with this new pricing structure is that it reveals a considerable problem at Blockbuster. Blockbuster has made several major changes to their pricing and policies over the last five years, and they can just not seem to find a structure that is both attractive to customers and also profitable. Furthermore, the frequent changes at Blockbuster make rental prices and policies seem arbitrary and capricious. At some point, Blockbuster’s customers are likely to get fed up with all of the changes and seek out more stable and consistent alternatives for video rental.

Blockbuster Subscription Cancellation Problems

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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 New DVD Shipping System Will Blow Your Mind

More details have surfaced about Blockbuster’s new DVD shipping system. The full truth is complicated and unbelievable.

The shipping system works on an expanding hierarchy search method. Presumably, every Monday, the shipping software searches the queues of subscribers with open queue slots. The catch is the software looks only at the first three positions (for a three-out plan) on Mondays. If you, the subscriber, have some immediately available titles in the first three positions of your queue, Blockbuster may ship DVDs to you on Monday. If you do not have any immediately available titles in your first three queue positions, Blockbuster may not ship a DVD to you on Monday. (Do not have great expectations for Monday shipping. Monday is not a full and legitimate shipping day at Blockbuster anyway.)

On Tuesdays, the software repeats the same process. The only difference is the software searches the first six positions of your queue for immediately available titles. If you do not have any immediately available titles in the first six positions, no DVDs are likely to ship on Tuesday.

On Wednesdays, the process continues by searching only the first nine positions of your queue. On Thursdays, the software considers the first twelve queue positions. Not until Friday will the software search your entire queue for immediately available titles.

This shipping system is confusing, so here is the breakdown.

Mondays – Only immediately available DVDs from the top three queue positions may ship.

Tuesdays – Only immediately available DVDs from the top six queue positions may ship.

Wednesdays – Only immediately available DVDs from the top nine queue positions may ship.

Thursdays – Only immediately available DVDs from the top twelve queue positions may ship.

Fridays – Any immediately available DVDs in your queue may ship.

This new shipping system is harsh enough, but here is where things get incredibly frustrating. You might think you can beat the system by keeping the first twelve positions of your queue free from titles with statuses of “Short Wait,” “Long Wait,” “Very Long Wait,” etc. Sadly, it is not that easy. Just because Blockbuster designates a title’s status as “Available,” it does not always mean the title is immediately available in your area.

In Blockbuster language, “Available” means the title is in reasonable supply nationwide; however, the status does not indicate availability in your region. For example, you live in Seattle and have Donnie Darko at the top of your Blockbuster Online queue. Donnie Darko may be abundantly available throughout most of the distribution centers in the eastern United States, but there may be no copies of Donnie Darko at distribution centers in your region. In this case, Donnie Darko could still have a status of “Available,” but since Blockbuster does not usually ship DVDs long distances, the DVD will most likely not be shipped to you.

Making matters much worse, if you had Donnie Darko and two other “Available” titles, which are not actually available regionally in the first three positions in your queue, these three titles could prevent shipments from your queue all day Monday, every Monday. If you had six such titles in your first six queue positions, Blockbuster might not ship to you on Mondays or Tuesdays. If you had nine such titles in your first nine queue positions, Blockbuster might not ship to you on Mondays, Tuesdays, or Wednesdays. If you had twelve such titles in your queue, Blockbuster might not ship a DVD to you until a Friday. Even on Fridays, you have no guarantees.

If you are thinking all of this is ridiculous and makes no sense, you are correct. This shipping system is absolutely ridiculous, and it is not supposed to make sense. The only logical explanation is that Blockbuster has found a way to systematically reduce the number of DVDs it sends to subscribers each week. This incomprehensible shipping system drastically reduces your ability to manage your account and receive your full subscriber benefits. Now that you know more about the system, maybe you can use the information to your advantage or, at least, gain some understanding about why you are not receiving DVDs from Blockbuster as quickly and frequently as you should.

Blockbuster’s Wednesday Shipping Tactic

If you have a Blockbuster Online account, you have probably noticed an unpleasant development recently. For months now, Blockbuster has been shipping many DVDs on Tuesdays, making Monday shipping an extremely rare occurrence. Now, Tuesday shipping is beginning to fade, and Wednesday is gradually taking its place as the first full shipping day of the week at Blockbuster.

This is an unwelcome development, which is significantly reducing the subscription benefits for which you are paying as a Blockbuster Online subscriber. If you exchange your online rentals at a Blockbuster store on a Friday night, it is quite possible Blockbuster Online may not ship new DVDs to you until Wednesday of the following week. In this case, the earliest you will get your online rentals will be Thursday, and having to wait on those DVDs until Friday or Saturday is very possible. So, with Blockbuster’s Wednesday shipping tactic, you could be facing a full week or more of waiting for your DVDs.

If your DVDs are not shipping until Wednesday, it will be nearly impossible for you to get more than one set of DVDs per week. Your only hope is that you receive and watch all of your DVDs on Thursday, exchange them at a Blockbuster store that night, hope Blockbuster Online will ship more DVDs to you on Friday, and then hope you receive the new DVDs by Saturday. This feat is going to be completely impractical for the vast majority of subscribers, and Blockbuster must know this. By limiting shipping on Mondays and Tuesdays, Blockbuster has found yet another way to reduce your subscription benefits while still charging you full price.