Blockbuster is Pissing Off Customers With Bringing Back Late Fees
Posted by Craig Kessler on March 12, 2010 at 2:30 am

Source: Flickr
I lived at home for a year after graduating college and commuted to the city everyday by train. I enjoyed growing up and had such a great college experience, culminating it to backpacking the middle east for almost a month right after. Then I entered the working world, began living in the same baby room I did when I was 15, did the daily grind with the rest of the zombies, and had no life. Due to the fact that I lived at home, didn’t have that many friends in the area at the time, and because of this new working lifestyle was just downright miserable, I found myself heading straight to Blockbuster many a Friday nights after work to get a movie, and waste my night away by myself. It costs $5 to rent a movie, am I didn’t even mind cause if I got lazy and didn’t return the movie within the week, I never had to worry about late fees anymore.
Well times have changed, so have my movie rental preferences, and so has Blockbuster’s late fee policies.
Much like myself, many users switched to Netflix, the leading movie rental service where you could be as lazy as you like, simply click a few buttons, and the movie of your choice came to your mailbox. I love this option, said see you later Blockbuster and have never looked back. Well because so many people have done this, Blockbuster, was forced to bring back their late fees to try to make up for some lost revenue.
Blockbuster already is in deep financial trouble and is closing down stores left and right throughout the country. The problem with Blockbuster is ironically that in order for the store to thrive, it needs users to rent older movies, which in store Blockbusters lack the selection. There are many reasons why Netflix is dominating, mainly because there are no brick and mortar building, because the cost of them is way too high, so they rather get a couple of warehouses in the middle of bumblefuck and ship everything out. Blockbuster hasn’t realized this yet for reasons I have no idea. Now they have their own mail in service but are still behind Netflix, especially since they recently made deals with all the gaming systems to stream movies online.
Blockbuster is in the dumps, and not only Netflix, they have to compete with itunes, on-demand, PPV, and of course illegal downloads. Bringing back the late fees is a desperate attempt at the company to try to squeeze a little more money out of its customers. This will backfire. The ones who are loyal, will be pissed that Blockbuster now is bringing back late fees, and this will most likely cause customers to leave.
Either two things are going to happen in the near future with my predictions.
1. Blockbuster is going to file chapter 11, go completely bankrupt and just shut their doors.
2. Completely shut down all brick and mortar stores and only be a online movie rental service or some sort of downloadeable service to compete with Netflix and itunes.
Circuit City recently had tons of financial problems, shut down, and rumors are they are going to sprout back up but strictly be an online electronics store. If Blockbuster ever wants to continue in business, they will have to use this business strategy, otherwise they will be another company we will forget ever existed.
What do you think about Blockbuster bringing back late fees?
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