Blockbuster, we hardly knew ye…

Maybe it was too good to be true, but the idea of receiving DVDs in the mail and returning them at a local store for more free DVDs got me to switch from Netflix to Blockbuster Online. By browsing on their website I could rent the hard-to-find DVDs–classics like “I Married a Monster From Outer Space,” or “Destination Mars”–, which I’d receive in the mail and view at my own leisure. When I was ready to return them, I could drive down to the Blockbuster at Cameron Village and exchange them for more current titles–all I wanted, for free. What a deal!

Blockbuster had a tremendous offering, or good enough for me to switch from NetFlix, anyhow. As a matter of fact, during the latter days of my Netflix relationship I was feeling uncomfortable because I felt that they delaying movie rentals to keep my monthly activity down. I’d send a movie back to them on Monday, and it was Thursday or so before they said they had received it, and I wouldn’t receive my next title until the following Monday. Where’s the fun in that?

So I was happy when Blockbuster came along, and praised the model–it seemed to be a slam dunk, customer-focused solution.

I’m not so happy anymore…

Because, I think they’re now playing the same Netflix game, and playing me for a fool. Recently I’ve noticed that my returns lingering a little longer “at the store,” delaying the cycle of replacement rentals coming my way. And now comes this note today, from Blockbuster:

Dear Henry, Due to changes in our subscription plan pricing, your current BLOCKBUSTER Total Access™ plan, Unlimited Online DVDs up to 3 at a time plus unlimited in-store exchanges each month for $17.99, will no longer be available at the current price. You will be moved to our new plan that includes Unlimited Online DVDs 3 at a time plus up to 5 free* in-store exchanges for $17.99. This plan will not include an e-coupon for in-store DVD and/or game rentals. The new subscription plan and pricing will go into effect on your regular monthly billing date following August 31, 2007.† In addition, exclusively for BLOCKBUSTER Total Access customers, we have introduced in-store movie rentals for $1.99* per movie should you need more than the in-store exchanges included in your plan. If you don’t feel this plan is right for you, please feel free to take advantage of one of these other options:

So I guess it was too good to be true, right? Now, to receive the same level of service I’m used to, I’ll need to pay $24.99 instead of $17.99. That’s quite a hike, and something I wasn’t prepared for. Of course, I could stick with the $17.99, receive fewer free in-store exchanges, and then pay the $1.99 for additional rentals. In essence, I’ll pay the same for down-graded service. That sucks.

I really think this change reflects badly on the goodwill that Blockbuster has earned with their current subscribers, and I guess I’m more disappointed than anything about this move. Blockbuster has done a lot of things right–like getting rid of late fees–but they’ve now received a black mark in my book. DVDs are getting cheaper, there’s more competition out there for online rentals, Amazon’s unBox isn’t half bad, and iTunes movies and TV shows are looking more attractive every day.

I’m not sure Blockbuster thought this one through for the long term…

Henry