Blockbuster is finding it harder to compete online than they originally
imagined. With Netflix ruling the roost, Blockbuster sought to make a name for
themselves by having a much lower monthly fee for their service. While they did
have Netflix beat in some areas, such as extending it to their brick-and-mortar
stores, it doesn't seem to be getting the critical mass they want.
As such, they are raising the price on the services they offer. Prices for
Blockbuster's Total Access $9.99 monthly plan, which allows customers to rent
one DVD at a time, and the most popular $17.99 plan, for three DVDs at a time,
will rise by $2. The price of the premium plan -- three DVDs at a time and
unlimited in-store trades -- will rise to $34.99 from $24.99 a month. The price
hikes will apply to new subscribers and some existing subscribers who are heavy
users, starting December 27. At the same time, they lowered the cost of some
other services, probably in attempt to reduce potential customer losses.
Overall, however, this is probably a negative move, at least for the online
portion of their business.