Having been a long time member of Blockbuster Total Access, think NetFlix with the added bonus of free in store rentals, I was unhappy to receive an email notifying me of the second price increase this year. When we initially signed up for Total Access, we were only paying $15.99/month for three movies at a time, with unlimited rentals per month. We also got a number of free rental coupons that we could use in the local Blockbuster.

Then Blockbuster added the ability to return the movies to the store and get a free in store rental for each Total Access rental returned. This was an amazing upgrade to the service. It basicly doubled the rate at which movies could be rented. There was no price increase initially, but that would follow shortly after. Obviously, Blockbuster was using its brink and mortar stores to help combat NetFlix online only service. However, we were never NetFlix customers, so they didn't have to give these free in store rentals to get us to convert to Blockbuster's service.

A few months later, sometime in mid 2007 I believe, Blockbuster changed the number of movies customers were allowed to return for free in store rentals. They grandfathered in customers that previously had this option, but new customers are now limited on the number of movies they can rent for free in store. At the same time, I believe, Blockbuster changed the price to $17.99 a month. This didn't both me much, since I figured I was getting a number of free rentals in the store to begin with.

However, Blockbuster had offered the in store free rentals to the customers at no cost. Now, months later, they are steadily changing the price to meet as they quote:

fair return for the company and our shareholders

Blockbuster's latest email:

As a BLOCKBUSTER Total Access™ subscriber, it's always easy to have the right movie during this holiday season with more than 75,000 titles, including great new releases like Harry Potter and the Order of the Phoenix, The Bourne Ultimatum and Pirates of the Caribbean: At World's End.

We know that during this busy time of year the convenience of BLOCKBUSTER Total Access is especially important to you. Have your movies delivered right to your door. If you want new movies right away, exchange in-store*. And with free shipping both ways and no late fees, it's easy to enjoy all the movies you want for as long as you want.

To continue to bring you the unmatched convenience of both online and in-store DVD rentals, your monthly subscription fee will change slightly from $17.99 to $19.99. This adjustment^† will go into effect on your next billing cycle on or after December 27, 2007. The benefits of your subscription plan will remain the same...and it's a value of $34.99!

My emailed question to Blockbuster Total Access:

You are changing the price of the service, but adding no value?

This is the second or third time this has happened without any value being added. Why should we choose to stay with Blockbuster if this is the trend?

Thanks

Blockbuster Total Access's response:

Thanks for contacting BLOCKBUSTER Online Customer Care.

I'm sorry if you feel that way, Chris. Our goal is to strike the right balance between providing great value to our subscribers and getting a fair return for the company and our shareholders. We want to provide a variety of subscription plans to meet the needs of all our customers, both in-store and online. It's important for us to give consumers the most convenient access to media entertainment, whether that's through our stores or by mail, and are dedicated to doing that with flexible plans and pricing.

We've reviewed our pricing structure and have found that to get a better balance of providing great value for Total Access subscribers while still making it affordable for us, as of December 27, 2007, we have restructured the prices of our Total Access subscription plans.

Please note that we're not changing any plan benefits; you'll continue to get all the same great benefits and value from Total Access. Of course, you're always free to change your plan.

If there is anything else I may help you with, please do not hesitate to email me again for it is my pleasure to assist you.

Joyce
Customer Care Associate
BLOCKBUSTER Online

This seems vaguely familiar. Wait. Doesn't this remind you of that movie rental company that advertised no late fees and then changed its mind a month or two later when it realized it had stuck its neck out too far and was losing its shirt. What was the name of that company?

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