Friday, August 17, 2007

Blockbuster Blows It!

Big Business Throws Away Advantage by Reducing Benefits While Raising Rates!

A couple of weeks ago I rated Blockbuster Online to Netflix. While I tried to be as impartial as possible in presenting the facts I think it's pretty clear that I personally favored what Blockbuster offered! Unfortunately now I have to write a rebuttal.

Blockbuster has raised their monthly rates and offers less for that cost. Previously you could return your online rentals to the store and receive a free rental for each return. If you averaged three rentals a week, the way I did, then you would get three more rentals a month. You also got another free rental via online coupons. Well, Blockbuster did away with the online coupons and now the most free rentals you can get a month for an exchange is five. In other words, I get 8 less rentals a month than I previously would.

Suddenly Netflix is starting to sound a little more appealing. What worries me about what Blockbuster is doing is because it was only a few months ago that they increased their benefits. In other words it was a lure, or as I like to call it, the Wal-Mart strategy. It's worth supporting the other guy because if Netflix didn't exist Blockbuster wouldn't offer us anything! Thank god for competition!

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