Blockbuster Online Adds Store Returns

By Ed Oswald | Published November 1, 2006, 12:06 PM

In its continuing battle with Netflix, Blockbuster announced Wednesday that it was changing its online rental service to allow users to return their movies in-store in exchange for free rentals. The new service would be available to all Blockbuster Online users.

Blockbuster Online had 1.5 million subscribers as of the end of September, a 50 percent increase. Over the past quarter, the service added 150,000 new subscribers. This is still far smaller than Netflix, which counts 5.7 million subscribers and added 493,000 new customers in the third quarter.

"Customers shouldn't have to choose between renting online versus in-store, and they should never have to be without a movie," Blockbuster chairman and CEO John Antioco. "Now, thanks to Blockbuster Total Access, they don't have to."

Users would not have to take advantage of the free in-store rental if they so decide. If they do not, the return of the movie would trigger the shipment of the next movie in the user's queue. Blockbuster said this would likely speed shipments by up to a day or more.

"We believe Total Access will help us achieve our goal of two million subscribers by year-end, position us to grow our subscriber base in the future and assist us in increasing our share of the overall rental market," Antioco said.

Blockbuster has several levels of membership, beginning with $5.99 USD per month up to $17.99 USD per month for an unlimited plan. The company will also offer a two-week free trial membership, including promoting it to previous customers of the service in an apparent attempt to lure lost users back.

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So why didn't Blockbuster start with this in the first place? Ever wonder which genius it was that decided NOT to exploit their advantage of having neighborhood stores over their competitor, Netflix?

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block buster started offering the total access that allows instore returns and so you may get 13-17 movies a month online, like netflix, and you also get one in-store rental a week. in addition to that (for a while), they were giving 1 rental for each one you returned in-store. that means you would get about 30 movies a month. How does that sound?

Can you get that with netflix? no, but I still didn't bite. I don't live to watch movies.

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Plus Blockbuster usually doesn't have what Netflix Does.

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This is a fantastic idea. I don't see how Netflix is going to compete with this.

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Netflix doesn't have to compete with Blockbuster's Total Access.

The whole idea behind Netflix' on-line rental services is that the consumer does *not* want to step into a retail outlet.

Is Total Access a fantastic idea? I think not. If anything, TA is a *minor* convenience offered by an aging media giant on its last leg.

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I agree. Not only do I not want to take the time to stop at a store, but I completely prefer choosing my rentals online - its much easier than trying to sort through all the crap at a store.

Plus - How much does it really save? Most people work 9-5. If you don't stop at Blockbuster until 5pm, your movie will not get shipped out that day.

With Netflix, I drop it in the mail Mon AM. They receive it early Tue AM and my next title is shipped out Tue.

I really don't see this saving time, except for the few that may stop at blockbuster during the day. As it is though, with 3 movies out at a time, how quickly do you really need your next title?

Edit - I just want to add, Netflix and Blockbuster probably don't need to worry about each other so much. The both (netflix more maybe) need to be concerned with the online one stop shops like Gameznflix. I am currently using both netflix and gameznflix, but may migrate totally to gameznflix as I can get it all in one place.

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This actually sounds like a good idea. I'm impressed. Maybe Blockbuster won't die.

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