Blockbuster Inc's (NYSE:BBI) attempt to compete with online-only DVD renter Netflix Inc. (NASDAQ:NFLX) has taken yet another turn. The once popular video merchant will now let its "Total Access" subscribers return a DVD rented online to a Blockbuster store.While this specific program is not earth shattering, it will give online DVD renters who are Blockbuster subscribers a little more flexibility on how they return videos. While I am not so sure that anything can beat Netflix's "drop in any mailbox" feature, the online Blockbuster system immediately gears up the next movie in the subscriber's queue for shipment once a video rented online is returned to a store.
Thus the time it takes a Blockbuster subscriber to receive fresh DVDs in the mail is reduced. Netflix subscribers have to wait until videos are returned by mail to have new selections in their queues sent to them, which introduces more lag and wait time. Will Blockbuster's attempt at cutting the wait time compared to competition from Netflix actually help its DVD rental business? Nobody knows, but previous attempts at taking on Netflix have fallen flat. Even Wal-Mart Stores, Inc. (NYSE:WMT) got out of the online DVD rental business, as it was unable to beat Netflix at its own game.











Reader Comments (Page 1 of 1)
11-02-2006 @ 2:46PM
Don said...
While being able to return a DVD rented online to a store (to clear the queue for the next movie) is great, the real benefit of "Total Access" is in Blockbuster giving a free movie rental in exchange for each online movie returned to a Blockbuster store. This is something that Netflix is unable to match.
11-06-2006 @ 6:22PM
tony said...
I don't know how Netflix can keep their subscribers after this. This is a huge move by blockbuster and I think Netflix will be losing lots of people. I just signed up for Blockbuster the day they released the new program and I had no idea it existed. This is so convenient and I hope blockbuster is making money doing this because I like the concept. The only way they could compete would be by opening up stores which you wont see happen ;). I went to blockbuster on my lunchbreak today, dropped off 2, picked up 2, and 2 will be shipped today :). With Netflix, I wouldn't get new dvds until 2-3 days from now.
11-07-2006 @ 2:29PM
Tiana said...
Think about this concept realistically. This is the biggest thing Blockbuster has done since getting rid of late fees. And the only thing it does is benefit the customers. It is unlimited rentals as many as you can watch, because when the customer returns the movie it will send their next movies waiting for them online out. Which means if they return 3 online movies to the store, they get 3 in store movie rentals, and they should have their new movies by the next day or the day after. So the turn around time of you dropping them in the mail box, usps getting them back to the distribution center, Blockbuster sending new ones out, and usps returning new ones to you is cut in half. I am a Blockbuster employee and currently see how our movie pass customers take advantage of new releases. They come in on Tuesday to get the newest releases so they are guaranteed to be their, then on the weekends they will rent older titles that they want to see also. It is the same for an online member. If they bring in their online movies on Tuesdays when new releases come out, then they are guaranteed to get the hottest titles. Then they can use Blockbuster Online for the older obscure titles that are hard to find in the store. Just a little tip. This is a great program, and a great opportunity for anyone who is unsatisfied with how they ren currently to try something new and innovative. You get a free two week trial for new online members, so even if you are a netflix customer it does not hurt to give it a try, still keep netflix, and see which you like better.
11-19-2006 @ 2:19AM
Jesse said...
>While I am not so sure that anything can beat >Netflix's "drop in any mailbox" feature,
>online Blockbuster system immediately gears the >next movie in the subscriber's queue for shipment >once a video rented online is returned to a store.
What exactly are they talking about "drop in any mailbox feature" that Blockbuster "can't beat?" Blockbuster Total Access has always had this feature. All of the mailers are prepaid for return postage. I'm not sure why anyone would want to put the mailers in a mailbox anymore considering the benefit of returning it to the store.
11-24-2006 @ 4:46PM
Ray said...
I don't rent videos much - but my wife does on a regular weekly basis. From what I read, the Blockbuster deal looks like the clear winner for the consumer. Are Blockbuster stores open everyday of the year? Does the postal service deliver every day of the year? Netflix is at a disadvantage merely by not having a dual-access system in place for customers. If you don't live close to a Blockbuster store than that is a different matter. Or is it? Does the postal system give Netflix customers priority delivery over Blockbuster customers? Just like Walmart, Sears, Target and other internet/traditional retailers know - you have to cover ALL the bases or risk losing revenue. Parents know kids love to look at the video cases in the store - that's part of the family experience of renting a movie. Netflix has a niche for folks in a hurry. Plus, if my DVD arrives with a scratch that makes playing it impossible, or the DVD sent was not the one requested - it's nice to know resolution is just down the street at Blockbuster. The free movie is a nice gesture,too. The score: Blockbuster-2, Netflix-1. Competition is great for the consumer - Let's keep up the pressure on both companies!
12-29-2006 @ 8:55PM
kte12 said...
Starting December 19, 2006, Blockbuster Total Access (online) is giving customers 1 free video game rental each month plus the first month is free.
Sign up at http://www.blockbuster.com/bbfamily
First month free with promo code 1557TA
Facts:
1. Offer changes to 2-week trial beginning Jan 15 2007. 3 movies out at a time.
2. Members will be able to exchange online movies for titles at their local bb store for no charge. (online mailer/movie will work like a coupon).
3. Members will also receive 1 in store coupon every month for a free movie OR video game (even during free month).
4. Only $17.99 per month after the 1st month.
5. As soon as the online movies are exchanged at the store the next movies in your que will ship as well.
1-05-2007 @ 2:44PM
Kerry said...
I started out with Netflix and have since made the switch to Blockbuster. There is no contest. Blockbuster sends movies faster even when you use the drop in the mailbox feature, which I never do. Why wouldn't I want to get more DVDs per month with Blockbuster than I can with Netflix? This is a question Netflix will have to answer if they don't want to go bankrupt in the next few years, maybe sooner. I would suggest to the Netflix company CEO that they offer maybe 6 DVDs out at a time for the same price. That is the only way that they can possibly compete.