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This topic comprises 2 pages: 1 2
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Topic: Netflix
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Eric Webb
Film Handler
Posts: 40
From: Atlanta GA
Registered: Oct 2004
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posted 01-01-2005 03:31 AM
quote from Daily Tribune
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Blockbuster eliminates late fees starting Saturday
By Catherine Kavanaugh
Daily Tribune Staff Writer
PUBLISHED: December 31, 2004
Ray Gorney of Royal Oak is looking forward to the rental relief Blockbuster customers will get on Saturday when the company drops its late fees.
He took his movie back on time Thursday but still had to shell out an extra $3.50 for one of his nine-year-old son Mack's delinquent rentals.
"He's notorious for returning video games late," Gorney said. "This is my biggest complaint with the company. It seems we always owe a late fee."
Gorney admits he's to blame once in a while. He has checked out new DVD releases and been unable to watch them in the three-day viewing window. Sometimes he holds onto the flick and pays a late fee and sometimes he just returns movies without even having opened the box.
"Then I check them out again a week later," Gorney said. "This new policy will help us a lot."
That's the idea, said Kelly Ciaciuch, manager of the Blockbuster at 27942 Woodward Ave., Royal Oak.
"Late fees are our biggest complaint, especially when people return things a couple hours late," Ciaciuch said. "We hope this brings some of our unhappy customers back."
Blockbuster, the No. 1 video rental chain, has been losing business to mail-order services like Netflix, which lets customers keep movies as long as they want without a late fee.
Blockbuster's policy isn't as generous, but it is a welcome change for customers like the Gorneys, who will save money and the hassle of rushing back movies and games.
Blockbuster products still will have due dates, but customers will get a six-day grace period to return them. They also will get two phone calls and a postcard to remind them their rental is overdue, Ciaciuch said.
"After that, we sell it to you," she added.
When the grace period is over, customers will go from renters to buyers. On the seventh day, the company will automatically charge the person's credit card or membership account for the cost of the movie minus the rental fee, which is $2.99 for DVDs and $6.99 for games at Ciaciuch's store.
The cost of becoming the owner of a Blockbuster product will depend on whether it is a movie or game and whether it is still in print. In most cases, customers will pay the price for previously viewed materials — $10-$17 for DVDs and $10-$13 for videos — and not the retail price, Ciaciuch said.
Anyone who doesn't want to own the movie will have a 30-day period from the point of sale to return it and have their account credited minus a $1.25 restocking fee.
Some customers are worried the more lenient return policy will make it harder to rent the hottest releases, but Ciaciuch said Blockbuster plans to increase its stock of new titles to keep its shelves full of the movies customers want the most.
There will be a drawback, however, for people so eager to get a movie they hang out by the drop box hoping someone brings one back. Blockbuster clerks used to be able to tell customers with some certainty whether it's worth the wait.
"We could say, 'We expect five copies back by midnight' and people would wait," Ciaciuch said. "Now there's no telling. We will have more copies available, however, so that should help."
Contact Catherine Kavanaugh at cathy.kavanaugh@dailytribune.com or 248-591-2504.
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