Blockbuster Online Raises Prices, Now Even With Netflix

I, for one, am completely tired of all the fluctuating going on in the online DVD rental space. Prices have been raised and lowered more times than I can count on one hand. Yesterday I received an email from Blockbuster stating that my monthly cost would be climbing up from the $15 range to the $18 range for my “3 at a time” plan starting August 19, 2005. In fact, Blockbuster has raised the pricing on all of their plans so that they now cost exactly as much as similar plans on Netflix, those being the 5-out and 8-out plans at $29.99 and $47.99 respectively. The interesting thing here is that while Blockbuster Online has hit the 1 million member mark - and plans on doubling that within the next seven months - the company’s “No More Late Fees” mindset has resulted in a loss of about $140 million. I guess that is cause for raising prices wherever they can.

More interesting, however, is the fact that Blockbuster Online will now be giving an added bonus to its members on a monthly basis. If taken advantage of, then you actually come out ahead even with the extra $3 per month hit. For example, this month in addition to the two in-store game or DVD rental coupons that is a standard feature of the Blockbuster Online service, they are also giving out free previously viewed titles to Online members as well. There is a list of about 25 movies that you can choose from. I even had a fourth offer in my account, which allows me to purchase an previously viewed title selling for $9.99-14.99 at the price of $7.99. Not too shabby.