Blockbuster increasing fees by $1

[Chloenator]

Originally Posted by GreenMotion

When Netflix increased their prices, I dropped them and went to Netflix.

So which one was better? Netflix or Netflix?

[vegeta88]

Originally Posted by GreenMotion

I just got an email from Blockbuster stating they are going to increase their subscription fee by $1 a month.

It really isn't that much and they will still be cheaper than netflix; but geez, I am getting so pissed off by everyone forcing price increases down my throat. Especially since I don't use it that much anyway. When Netflix increased their prices, I dropped them and went to Netflix. If anything, just to signal them I wasn't ok with it. So now I am really considering dropping Blockbuster and going back to netflix; but from reading this forum I see they (netflix) are still having long-wait queue's and on top of that, that 30 day waiting period for some titles.

ARGH. what to do .. what to do!!!! Maybe I'll drop online rentals all together.

Like you said,$1 more isn't too bad especially if it still beats the competition but I see where you are coming from. If you feel like the new price isn't worth it, drop it. Otherwise I don't see why you should be too upset. Like another poster stated, no one is forcing the new price on you.

I didn't know Netflix was having long wait issues. I have some titles that have been in my queue for months on a waiting status.

Originally Posted by GoPens78

So which one was better? Netflix or Netflix?

[Minimejer05]

I never got the 1 dollar increase. However, they did manage to send all 3 of my movies to someplace other than my home... and now I got emails saying "Thank you for returning your movies, we will send your next movies in Q". I called the guy and explained how I never got the movies and that its been over a week... He said sorry and that they will resend them... he then offers me a free movie rental coupon. I go to open it only to release its for DVD and VHS(lol wow?) only. No mention of Blu Ray... so I didnt even bother trying to use it.

[progers13]

So...in essence...Blockbuster wants to lose more money this year...

[connect42]

Originally Posted by progers13

So...in essence...Blockbuster wants to lose more money this year...

That makes no sense. Most people will not even notice the $1.

[progers13]

Originally Posted by connect42

That makes no sense. Most people will not even notice the $1.

It makes perfect sense. It's called economics.

The idea behind a rate hike is to make more money than you give up. In this case, Blockbuster is raising the fee by $1 (x% of their revenue). Blockbuster knows that some people will not pay the extra dollar. They are gambling that the number of people who do pay that dollar will offset those who do not. As an example: If Blockbuster intends to increase their revenue, say, $10 million in extra sales, that sounds great until you take into account, say 15 million fewer rentals. So what happens? Blockbuster raises the rate and sends themselves further into a tailspin.

The way to increase revenue in this market is to reduce rates to encourage people to rent more. More unit sales = more money. Less unit sales = less money.

Read up on a principle known as Elasticity of Demand.

[BStecke]

It's a lot less than a 25% increase. Like 9% at most.

I have Blockbuster but didn't receive any notice of an increase. I actually just got an email the other day saying that I have unlimited in store exchanges for the next three months instead of my usual three.

[connect42]

Originally Posted by progers13

So...in essence...Blockbuster wants to lose more money this year...

Originally Posted by progers13

It makes perfect sense. It's called economics.

The idea behind a rate hike is to make more money than you give up. In this case, Blockbuster is raising the fee by $1 (x% of their revenue). Blockbuster knows that some people will not pay the extra dollar. They are gambling that the number of people who do pay that dollar will offset those who do not. As an example: If Blockbuster intends to increase their revenue, say, $10 million in extra sales, that sounds great until you take into account, say 15 million fewer rentals. So what happens? Blockbuster raises the rate and sends themselves further into a tailspin.

The way to increase revenue in this market is to reduce rates to encourage people to rent more. More unit sales = more money. Less unit sales = less money.

Read up on a principle known as Elasticity of Demand.

I do not need to read up on anything. You are assuming that people will rent less. That is not a fact. That is an assumption.

[Collectors Set]

Originally Posted by Minimejer05

I never got the 1 dollar increase. However, they did manage to send all 3 of my movies to someplace other than my home... and now I got emails saying "Thank you for returning your movies, we will send your next movies in Q". I called the guy and explained how I never got the movies and that its been over a week... He said sorry and that they will resend them... he then offers me a free movie rental coupon. I go to open it only to release its for DVD and VHS(lol wow?) only. No mention of Blu Ray... so I didnt even bother trying to use it.

The free in-store movie rental coupons from BB customer service, eventhough they don't state it, are valid for any blurays as well and any new releases.