how great is that? I've probably spent more in late fees than I have on the actual rentals. no more baby!!

Its not exactly true.

really? how so?

I know they give you up to a week past the due date... unless she lied to me.

http://www.modbee.com/business/story/97 ... 9267c.html

No more late fees? Read the fine print at Blockbuster

By TODD MILBOURN
BEE STAFF WRITER
Last Updated: January 13, 2005, 05:04:36 AM PST

In television ads, crowds rejoice Blockbuster Inc.'s decision to eliminate its much-maligned late fees.

But Dave Jackson doesn't find it such a great deal. The Modesto man points to the fine print, which states if you keep a video or DVD for more than a week after the due date, you don't pay a late fee -- you buy it.

"To me, that's a really big late fee," said Jackson, as he left a McHenry Avenue Blockbuster, three DVDs in hand. "It's really more expensive than before."

Blockbuster announced its decision in December, widely seen as a move to better compete with Internet-based mail-delivery services such as Netflix Inc. But consumer reactions are mixed.

Anna Blunt of Modesto applauded the move. She said renters had been unfairly punished for hectic schedules that make it difficult to return videos on time.

"I think it's a good thing," said Blunt, who rents about two DVDs a week. "We never get ours in on time."

Rad Wells of Modesto said the change makes life easier for those who struggle with punctuality.

"You know how one person signs out a DVD and another person is supposed to return it and no one does? It's good for them," said Wells, 48, who insisted he's never incurred a late fee.

Blockbuster had expected to earn $250 million to $300 million in operating profits next year from its unpopular late fees. But the company is banking on the idea that customers, no longer worried about late fees, will rent more movies and games.

"We had to deal with late fees," said Chairman and Chief Executive Officer John Antioco. "It's the source of jokes on late-night TV. It's still anecdotally, and in some sense really, the biggest negative to Blockbuster. … There were customer transactions that never happened because of late fees."

But rivals claim that Blockbuster hasn't really eliminated late fees, only given customers more time before incurring even larger payments.

Due dates at Blockbuster's 4,500 U.S. stores have remained one week for games and up to one week for movies. But as of New Year's Day, customers have a one-week grace period at no charge.

Renters who keep the movies or games beyond the new one-week grace period will be charged for the retail price for the DVD or tape, minus the rental fee, the company said. Retail prices range from $10 for older DVDs to $19.99 for new ones.

If customers return the movie or game 30 days after the grace period ends, they will get their money back. But they will be charged a restocking fee of $1.25, according to the company.

Blockbuster, Netflix and Wal-Mart Stores Inc. are locked in a brutal price war that has raised questions about the profitability of online ordering services.

There was more shake-up in the industry earlier this week when video rental giant Hollywood Entertainment Corp. agreed to a buyout offer of nearly $850 million from smaller rival Movie Gallery Inc., in a deal that would create a stronger challenger to Blockbuster, the industry leader.

Named in several class-action lawsuits over late charges, Blockbuster stopped disclosing how much it made from the fees several years ago.

In 2000, the last full year for which figures are available, the fees amounted to 19 percent of the company's revenue. A trade publication recently estimated that late fees accounted for about 10 percent of Blockbuster's revenue, which was $5.82 billion last year.

But some of that money could be recouped when tardy customers end up owning the DVDs they rented.

"They probably won't lose anything on this," said Wells, before heading home to watch "Harold and Kumar Go To White Castle."

"Why else would they do it?"

If you keep the DVD, do you at least get the actual case and everything?

I think a lot of the public is being misleaded by not knowing the exact details of the policy.

yeah, I didn't know about the extra charge... good to know.

still, 9 days is better than 2.

I'll stick with NetFlix.

Blockbuster no-late-fee ads don't apply here


By JEANNE ANNE NAUJECK
Staff Writer


Standing in line at Blockbuster, Susan Passi-Klaus thought she'd paid her last late fee.

After all, she'd seen the splashy TV ads heralding ''No More Late Fees!'' at the video, DVD and game rental chain.

So she was angry when the clerk told her the policy doesn't apply in Nashville.

''They're running all these national ads that make this big deal about no late fees,'' the free-lance writer said yesterday.

''I wasn't going to Blockbuster in the first place, because I thought they were Nazis about their late fees. It's totally misleading.''

The ''no late fee'' policy applies at Blockbuster's more than 4,500 company-owned stores nationwide and at about half of its 1,100 franchised locations, stores operated by local merchants. But Nashville's 31 area stores are owned by a franchisee that has opted to continue charging late fees, a move that's allowed under franchising deals with Blockbuster.

But Blockbuster's corporate brain trust is loudly touting its no-late-fee policy in a national ad campaign, and the commercials can't be taken off the air here.

The no-late-fee policy is in force in about 95% of the nation, just not in Nashville, Memphis and a few other holdout markets.

''We are very aware and sorry that the national advertisement is causing some confusion among customers,'' said Tom Barzizza, vice president of marketing for Southern Stores, a Memphis-based holding company that owns all of Blockbuster's Nashville outlets and about 60 others in the Southeast.

''It's just unfortunate the ad buy was in our market. Obviously, we would not have run that,'' Barzizza said.

David Bohan, chairman of BOHAN Advertising/Marketing, gives the ''No Late Fees'' commercials high marks for creativity and for a classic ad scenario in which the customer has a problem and the company solves it. ''It's a very effective TV commercial,'' he said.

Bohan said the ads could backfire if Blockbuster customers think the policy applies everywhere.

Barzizza said Southern Stores had no plans to change its late fee policy in Nashville. The rules that local stores have been using are fair, he said.

Last spring, the local franchisee rolled out a ''Day Late, Day Rate'' system that prorates late fees by the number of days a customer is tardy. For example, if a customer rents a video for $3.89 and returns it a day late, he's charged only 78 cents for the extra day. Nationally, Blockbuster had been charging a $3.89 late fee in that scenario.

''People understand (the) system,'' said Barzizza, who said Southern Stores copied rules used by other rental businesses. ''If they go rent a car, or check out a library book, they know they'll be charged extra per day. There's complete control of how much money they're spending and how.''

Blockbuster's national no-late-fee rules are being rolled out at a time when consumers have a growing number of entertainment options — from ''on-demand'' movies at home via cable and satellite TV to movie rentals from online services such as Netflix for a flat monthly fee.

Maura Mooney, 35, has a Blockbuster membership for emergencies but said she relied on Netflix for convenience. ''I don't have to go browse the store to see if they have a movie, and I can take as long as I want. If you rent three movies a month, it pays for itself based on what Blockbuster charges.''

Blockbuster's national rules allow customers to take up to a week after the due date to return a game or movie without penalty. But come the eighth day, they own Gigli or Waterworld. The purchase price is charged to their account. The customer has to return the item within 30 days to get the charge reversed.

''You could end up owning a whole lot of weird movies,'' said customer Katherine Stranahan, who said her family was ''always consistently late returning DVDs.''

Barzizza said he didn't understand Blockbuster's new national rules. ''There's no incentive for people to return it. We would have no product available. That's the No. 1 objective, having the product where and when (customers) want it,'' he said.

While Blockbuster could lose revenue from doing away with late fees nationally, the company said it expected to make up for the loss via more rentals and sales.

Barzizza said Nashville area store clerks had been asked to be ''lenient with folks and understanding'' while explaining why the policy isn't in effect here.

Blockbuster confusion

In Music City: The Nashville area's 31 Blockbuster stores are owned by a Memphis franchisee, and they still charge late fees under a ''Day Late, Day Rate'' rule that prorates charges so that a customer who is one day late on a five-day rental pays 78 cents. Blockbuster's corporate-owned stores, 95% of the nation, used to charge a $3.89 late fee under the same circumstances.

Elsewhere: Blockbuster's new national rules give customers a grace period up to seven days to return a rental video, DVD or game. On the eighth day, the item is rung up on the customer's account at the retail purchase price. The customer has 30 days to return the item for a refund. They're still assessed a $1.25 restocking fee.

its a big catch, but i still think its a good policy. if you're keeping a movie for over a week well c'mon now, that's just being greedy or more likely lazy. plus you get a dollar credit for returning the next day, which my family usually does anyway.

Hollywood Video is the only place I go anymore.

hollywood video totally screwed me over about 7 years ago, trying to make me pay a late fee for a movie i returned on time. so i refused to pay and never went back their again. they probably still want me to pay it too, those bastards.

They'll let you pay a dollar a time if you want to. They have always been extremely nice to me. Now Blockbuster has always been assholes no matter which store I went to.

My friend is a GM for Blockbuster and he broke it down for me.

If you keep it longer than the week grace period they will charge you the previously viewed price. So, it's almost like buying a used video, with out the case.

Dear Blockbuster:

Netflix is going to destroy you eventually.

Sincerely,

Americans Who Know You Suck in Countless Ways

ps - your selection is fucking terrible

thanks for posting that, that will keep me from buying the shit when its late

I've also heard that if you keep movies that are no longer available to buy (like the discontinued Disney movies) the price of the movie is over $100. I'm not sure if it's true, but if it is, that could seriously screw over a lot of people.

BB charged me for a game that I returned and didn't call me to tell me they'd never checked it back in. I just got a collection letter one day. I talked to an employee there and told him what had happened. I don't get collection letters now.

Another reason hollywood video is da man. They are great. Five days is more than enough time to remember I rented it, watch it, and remember to return it.

I think that policy is great. If you're keeping a video for over a week past it's due, you deserve to be screwed.