# C'mon Blockbuster, why the charade? **URL:** \ **Category:** The BBQ Pit\ **Created:** [January 10, 2005, 10:08pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106 "2005-01-10T22:08:03Z")\ **Posts on this page:** 20\ **Page:** 4
**Author:** ![Musicat](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/musicat/32/20189_2.png) [@Musicat](https://boards.straightdope.com/u/Musicat)\ **Post date:** [January 13, 2005, 2:44pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/61 "2005-01-13T14:44:57Z")
> [@tdn](#): > > Would it be a good business model if they sold $25 videos for $4.95? Absolutely, as long as they can make a profit. And I see by **XJETGIRLX’s** link that BB has already started a Netflix-type business for $14.99/month. Now that one they could REALLY advertise as “no late fees.” ---
**Author:** ![XJETGIRLX](https://avatars.discourse-cdn.com/v4/letter/x/9fc29f/32.png) [@XJETGIRLX](https://boards.straightdope.com/u/XJETGIRLX)\ **Post date:** [January 13, 2005, 2:55pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/62 "2005-01-13T14:55:48Z")
> [@El Escorpio](#): > > But there are many of us (not to sound too melodramatic) that have long memories of what a royal pain in the ass it was to rent from Blockbuster and what a reaming you got when you didn’t return that one video (out of 300) on time. ::Sniff:: Yes, I remember the day they took away my corporate-issued cat o’ nine tails and my blue and yellow iron maiden. What’s wrong with the world these days, that we’re no longer allowed to maim and punish customers with such a blatant disregard for our rules? Those were the good days, when the walls ran with blood and our coffers were stuffed to the gills. 😃 ---
**Author:** ![tdn](https://avatars.discourse-cdn.com/v4/letter/t/94ad74/32.png) [@tdn](https://boards.straightdope.com/u/tdn)\ **Post date:** [January 13, 2005, 2:56pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/63 "2005-01-13T14:56:49Z")
> [@Musicat](#): > > Absolutely, as long as they can make a profit. And just how would they do that? And after having seen the commercial, I must say “Wow.” A crowd standing outside chanting “No more late fees.” Bunch of whiny bitches who might as well be chanting “We’re a mob of lazy asses who can’t be trusted with even a small modicum of accountability, and we want you to eat the costs of our sloth.” And then the BB people unfurl a sign that might as well say “We’re wusses! We’ll pander to anyone! We have no shame!” ---
**Author:** ![Uncommon\_Sense](https://avatars.discourse-cdn.com/v4/letter/u/f9ae1b/32.png) [@Uncommon\_Sense](https://boards.straightdope.com/u/Uncommon_Sense)\ **Post date:** [January 13, 2005, 3:08pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/64 "2005-01-13T15:08:21Z")
**tdn** , outstanding logic. Couldn’t have said it better myself. ---
**Author:** ![kung\_fu\_lola](https://avatars.discourse-cdn.com/v4/letter/k/f4b2a3/32.png) [@kung\_fu\_lola](https://boards.straightdope.com/u/kung_fu_lola)\ **Post date:** [January 13, 2005, 3:48pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/65 "2005-01-13T15:48:32Z")
> [@tdn](#): > > Reaming? “Uh, looks here like you have a late fee of $3.95. Would you like to take care of that now?” Reaming? Melodramatic, indeed. I’ve had a lot of time to think about this, and I think it’s because if you pay us that four or five dollars, you’re not really getting anything for it - you’re just paying for an extra handful of hours. This is not something tangible, it’s just time. So customers balk at having to give us a fiver and getting essentially nothing in return. This is how the new system is so different - if you don’t return the movie, you get to keep it. You pay us $16.99, and you get a movie. You get something tangible in return. Compare old system: 9 days late returning film. Pay (approx.) $50 in late fees, get nothing, pray that the clerk cuts the late fee for you because you smile so pretty. New system: 9 days late. Pay $16.99 for DVD and get to keep it **or** pay $1.50. It’s obvious which is cheaper. ---
**Author:** ![tdn](https://avatars.discourse-cdn.com/v4/letter/t/94ad74/32.png) [@tdn](https://boards.straightdope.com/u/tdn)\ **Post date:** [January 13, 2005, 4:00pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/66 "2005-01-13T16:00:25Z")
> [@kung fu lola](#): > > This is how the new system is so different - if you don’t return the movie, you get to keep it. You pay us $16.99, and you get a movie. You get something tangible in return. I’d agree with your logic if people weren’t bitching and moaning more than ever about the new fee structure. ---
**Author:** ![kung\_fu\_lola](https://avatars.discourse-cdn.com/v4/letter/k/f4b2a3/32.png) [@kung\_fu\_lola](https://boards.straightdope.com/u/kung_fu_lola)\ **Post date:** [January 13, 2005, 4:02pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/67 "2005-01-13T16:02:15Z")
I think it’s because they’re so skeptical. They can’t believe that “improvements” to any business would be in their favour. They’re so used to hidden charges and prices that go up and up that “what’s the catch?” is the mantra of consumers today. ---
**Author:** ![tdn](https://avatars.discourse-cdn.com/v4/letter/t/94ad74/32.png) [@tdn](https://boards.straightdope.com/u/tdn)\ **Post date:** [January 13, 2005, 4:21pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/68 "2005-01-13T16:21:07Z")
> [@kung fu lola](#): > > I think it’s because they’re so skeptical. They can’t believe that “improvements” to any business would be in their favour. They’re so used to hidden charges and prices that go up and up that “what’s the catch?” is the mantra of consumers today. I think you’re absolutely right. ---
**Author:** ![RogueRacer](https://avatars.discourse-cdn.com/v4/letter/r/7ab992/32.png) [@RogueRacer](https://boards.straightdope.com/u/RogueRacer)\ **Post date:** [January 13, 2005, 4:42pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/69 "2005-01-13T16:42:47Z")
I think people just like to bitch, whine, and complain. ---
**Author:** ![Marley23](https://avatars.discourse-cdn.com/v4/letter/m/45deac/32.png) [@Marley23](https://boards.straightdope.com/u/Marley23)\ **Post date:** [January 13, 2005, 10:28pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/70 "2005-01-13T22:28:06Z")
> [@XJETGIRLX](#): > > If your gripe is that you’re being charged at all, then maybe you should just start trying to steal things outright. If you could’ve been bothered read my earlier posts in this thread, you’d see I said this is a pretty good deal by any standard, I just think their ads are less than forthright. But I guess that was too difficult for you. Oh well. ---
**Author:** ![Musicat](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/musicat/32/20189_2.png) [@Musicat](https://boards.straightdope.com/u/Musicat)\ **Post date:** [January 13, 2005, 11:08pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/71 "2005-01-13T23:08:39Z")
> [@tdn](#): > > Would it be a good business model if they sold $25 videos for $4.95? > [@Musicat](#): > > Absolutely, as long as they can make a profit. > [@tdn](#): > > And just how would they do that? Easy. Buy 'em for $3.49, sell 'em for $4.95. Your “$25” price was _retail,_ right? Economics can be so simple. 🙂 ---
**Author:** ![mhendo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mhendo/32/3159_2.png) [@mhendo](https://boards.straightdope.com/u/mhendo)\ **Post date:** [January 13, 2005, 11:21pm UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/72 "2005-01-13T23:21:26Z")
> [@Musicat](#): > > Easy. Buy 'em for $3.49, sell 'em for $4.95. Your “$25” price was _retail,_ right? > > Economics can be so simple. 🙂 Maybe, but not quite that simple. Would the $1.46 margin on those DVDs be sufficent to cover overhead like rent, utilities, wages, and all the other ongoing costs associated with running a Blockbuster store? ---
**Author:** ![emarkp](https://avatars.discourse-cdn.com/v4/letter/e/3be4f8/32.png) [@emarkp](https://boards.straightdope.com/u/emarkp)\ **Post date:** [January 14, 2005, 12:34am UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/73 "2005-01-14T00:34:03Z")
> [@tdn](#): > > What would be a good business model for them? Taking advantage of their physical presence by having accounts which allow people to return DVD’s by mail. Blockbuster’s big advantage is immediacy. So why not have a netflix-like account where you can go into the store to select? If you’ve already gone higher than your “max allowed” DVD’s then you can upgrade your account or return a previous rental. But if you don’t want to go to the store, just mail it in. How hard is that? ---
**Author:** ![tdn](https://avatars.discourse-cdn.com/v4/letter/t/94ad74/32.png) [@tdn](https://boards.straightdope.com/u/tdn)\ **Post date:** [January 14, 2005, 1:17am UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/74 "2005-01-14T01:17:02Z")
> [@emarkp](#): > > How hard is that? That’s one idea. But it presupposes that I have a monthly fee, sort of like Netflix. In fact, doesn’t BB have something like that now? The thing is, I’m a Netflix regular and a BB once-in-a-whiler. An $18 monthly charge from there would be a huge money sink for me. It means I’d be paying about $72 per rental. Thanks, but I prefer the deal I have with them now. However, pick-up in-store, mail-back would be an excellent idea. Maybe someone should suggest that to them. Of course, people would just think it’s another scam. ---
**Author:** ![KidCharlemagne](https://avatars.discourse-cdn.com/v4/letter/k/ed8c4c/32.png) [@KidCharlemagne](https://boards.straightdope.com/u/KidCharlemagne)\ **Post date:** [January 14, 2005, 1:37am UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/75 "2005-01-14T01:37:02Z")
Here’s my take: People consider the rental period to be that period over which no additional charges will be incurred. It doesn’t matter whether you call it a grace period or just part of the rental period. Hell, the rental period used to be a week for all videotapes. It will be human nature to consider the entire week part of the de facto rental period and therefore people may schedule their viewing accordingly. If BB lengthened the rental period to a week, they would still get just as many late fees because people will have adjusted to thinking in terms of the new rental period. Now instead of paying a late fee at the end of the rental period, the rentor will have to buy the movie. BB will make more money under this new system; that’s why they’re doing it. They think they can capture some goodwill off of people who think they are doing something nice for customers at BB’s expense. I can see why the OP sees this campaign as disingenuous. It is. I don’t have a problem with it, but it does spin the reality quite a bit. ---
**Author:** ![tdn](https://avatars.discourse-cdn.com/v4/letter/t/94ad74/32.png) [@tdn](https://boards.straightdope.com/u/tdn)\ **Post date:** [January 14, 2005, 1:52am UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/76 "2005-01-14T01:52:44Z")
> [@KidCharlemagne](#): > > BB will make more money under this new system; that’s why they’re doing it. Really? Can you show me the math on that? I figured they’d make less. Here’s why: A rental is $4.00, let’s say. Love Boat, the Motion Picture costs $20. In the old system, Bill rents it for $4. He returns it a day late. He pays a late fee of $4. Bob rents it the next day for $4. Total profit for BB, $12 plus they still own a $20 movie – result, $34. New system: Bill rents it for $4. He returns it a day late. He pays a replacement fee of $20 minus the $4 rental price and keeps the movie. Bob can’t rent it the next day. BB must buy another copy. Total profit for BB: $0. In the meantime, they lose out on more rentals. However, Bill decides he doesn’t want to keep the movie and returns it for a $20 refund – or perhaps they only give him $16 back because they still charge him the rental fee (I’m not sure what they’d do in that situation, but let’s pretend it’s $16). They charge him $1.50 restocking fee. They still have their original movie, but have only made $5.50. They still lost out on Bob. Is my math right, or am I misunderstanding the policy? ---
**Author:** ![KidCharlemagne](https://avatars.discourse-cdn.com/v4/letter/k/ed8c4c/32.png) [@KidCharlemagne](https://boards.straightdope.com/u/KidCharlemagne)\ **Post date:** [January 14, 2005, 3:09am UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/77 "2005-01-14T03:09:25Z")
My comment didn’t come from a deep understanding of the rental fine print but rather knowing that BB doesn’t make a move that it doesn’t think will make it more money or at least make it lose less. I don’t know if they will make more money on individual rentals because I’m not sure how the licensing fees work. The willingness to accept returns is gonna be a big hit. My guess is that they plan on getting people to rent more movies since they’ll have 7 days to watch them. They also hope to draw more people in under the “No late fee” policy. ---
**Author:** ![emarkp](https://avatars.discourse-cdn.com/v4/letter/e/3be4f8/32.png) [@emarkp](https://boards.straightdope.com/u/emarkp)\ **Post date:** [January 14, 2005, 3:37am UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/78 "2005-01-14T03:37:12Z")
> [@XJETGIRLX](#): > > you didn’t return it by the contractually agreed-upon time. That sounds like “late” to me. ---
**Author:** ![emarkp](https://avatars.discourse-cdn.com/v4/letter/e/3be4f8/32.png) [@emarkp](https://boards.straightdope.com/u/emarkp)\ **Post date:** [January 14, 2005, 3:49am UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/79 "2005-01-14T03:49:38Z")
> [@tdn](#): > > However, pick-up in-store, mail-back would be an excellent idea. Maybe someone should suggest that to them. So charge $2-3 for pickup and $0.20-$0.25 per day until it comes in. Then you can have as many out as you want, and simply pay as you go. > [@](#): > > Of course, people would just think it’s another scam. Not if it’s advertised clearly. ---
**Author:** ![Ms2001](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ms2001/32/18463_2.png) [@Ms2001](https://boards.straightdope.com/u/Ms2001)\ **Post date:** [January 14, 2005, 5:25am UTC](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106/80 "2005-01-14T05:25:39Z")
> [@Bendarr](#): > > Last sunday, a friend and I were watching a little tube and we saw the commercial and he told me why he won’t deal with BB. One time he returned a rental a little late, so there was a $3.00 fee on his account. Typical operation for a normal rental place would be for him to pay it the next time that he came in or he could no longer rent. Hell, at Hollywood Video, you don’t even have to pay your late fees before you can rent again, as long as they’re below a certain amount. [Previous page](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106.md?page=3) [Next page](https://boards.straightdope.com/t/cmon-blockbuster-why-the-charade/284106.md?page=5)