Blockbuster tries to lure customers back following acquisition

By on Aug 2, 2011 at 7:00 AM
General August 2, 2011

Following bankruptcy and an ensuing acquisition at auction, Blockbuster is now trying to lure back the hordes of customers it lost to competitors like Redbox and Netflix. A BGR reader sent us a letter that Blockbuster is circulating to recent defectors in an effort to win back their business in a post-Dish Network world. Among the carrots Blockbuster is currently dangling are a free 30-day Total Access trial and a “special rate,” though that special rate is not disclosed in the email. Blockbuster’s Total Access service was created as a direct response to Netflix, offering DVD rentals by mail just as Netflix does, though Blockbuster’s option is now more affordable following Netflix’s price hikes. Of course Total Access used to be a much more attractive option than it is in its current state, but the lower pricing and the quicker availability of new titles could be attractive benefits over rival Netflix. Blockbuster’s letter to former Total Access customers can be found below.

Dear [redacted],

Just 90 days ago I became the president of Blockbuster. In that time, our company has worked tirelessly to improve our product and regain your trust. We have reduced in-store DVD rental prices by as much as 38%, while other companies have raised prices by as much as 60%. Millions of customers have rewarded us by visiting our stores and experiencing our unmatched choice, convenience and value.

You’ve been part of the Blockbuster family before, and we want to earn your business again. For a limited time, we’re offering you a special rate and a free 30-day trial of Blockbuster Total Access.

Blockbuster Total Access is an outstanding alternative to other services. In addition to our everyday low pricing, you’ll get:

  • Many of the newest movie releases 28 days before Netflix and Redbox.
  • Games and Blu-ray at no extra charge
  • Unlimited exchanges for free in-store movie rentals
  • Improved availability, especially of our new release titles

We have more than 1,500 stores nationwide that will continue to provide excellent service and value and I invite you to take advantage of unlimited in-store exchanges. We hope you will agree that the Blockbuster experience is unmatched.

As a special offer to you, you’ll get a discounted rate if you sign up using the link in this email before September 15. Come say hello to the new Blockbuster — click here to start your 30-day free trial today.

Sincerely,
Michael Kelly
President, Blockbuster L.L.C.

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  • Anonymous

    Get a streaming catalog that’s included in the price and you can get my business back.

  • Anonymous

    Since the world is now apples for apples with Netflix splitting their service, it’s good to have someone else in the game. If the DVD turnaround is as quick as Netflix I may give them a try. As for streaming I have other choices.

    • Anonymous

      The DVD turnaround doesn’t have to be as fast as Netflix as long as I’m able to exchange it in-store.

      • http://www.unnecessarydrama.net Kell

        Thats not going to matter for people who lost the Blockbuster location in their neighborhood. I can’t even think of one within a 10 mile radius to where I live and I’m right outside of Pittsburgh.

      • Anonymous

        You make a good point. If(when) the Blockbuster 3 blocks from my house shut down I probably wouldn’t do Blockbuster by mail either.

  • Rob Meyer

    Blockbuster’s operations must be two guys emailing each other sitting across the room at a starbucks.. seriously? they are still incorporated? = )

  • Anonymous

    You’re going to have to match Netflix on their DVD rentals and beat them on their streaming catalog to have a hope in hell.

    In other words, you’re still fucked, Michael Kelly. Condolences.

    • Neoprimal

      I don’t understand why they’d have to beat Netflix on their streaming catalog. Pound for pound, BB is offering cheaper DVD only plans than Netflix and customers have a chance to just take them to the store and exchange them for new rentals…this is a big advantage. This basically means they have a chance to lure away those who rent DVDs primarily. Not everyone streams – and in this scenario, BB would etch out ahead of Netflix for many consumers.

      Of course, this isn’t always the case as some of us require a wider variety selection (me!)…since I watch Anime and enjoy foreign so-called kung fu movies. I’ve found BB lacking much in both genres.

      • Anonymous

        Frankly? I chalk it up to the laziness of the consumer. In a lot of minds, it’s either Netflix or Blockbuster. Now that Netflix has split their streaming and DVDs, Blockbuster might have a bit of an in. But the mindshare that Netflix has is going to be a difficult obstacle to overcome.

    • http://www.unnecessarydrama.net Kell

      If Netflix’s streaming catalog keeps adding movies from 1998 and made-for-tv ABC Family movies.. I think Michael Kelly may have more of a chance than originally predicted.

      • Anonymous

        Yeah… that’s a good point. I’m getting tired of seeing “DVD only” on everything that I would reasonably want to watch.

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  • Anonymous

    If they offer some insanely cheap plan with streaming, I’d give them a shot, why not.

  • Neoprimal

    There are still 2 problems with Blockbuster vs. Netflix. The first is that it’s still not competitive with Netflix regarding streaming in any capacity whatsoever. 

    So I’d have to consider for example, dropping only the DVD portion of Netflix, but that, which leads to the second problem…wouldn’t be worth it for me. The tradeoff with Netflix just isn’t worth if for some. You will 1. get movies 28/30 days earlier 2. pay slightly less monthly and 3. be able to drop your dvds or exchange them at your closest store but the bad side is that you will 1. lose much of a variety, as Blockbuster doesn’t have as much stuff as Netflix and 2. imho, from what I remember anyway the mailing times are very random…sometimes your movie can be 2 to 3+ days away if you depend on mailing them, while Netflix gets a movie to your mailbox 1 business day from receipt guaranteed (for me, anyway). In my case, I don’t care about getting a movie 28 days earlier than Netflix so that doesn’t tempt me at all, I’m in no rush. I WOULD love to be able to drop/exchange at a local outlet but it’s not worth losing out on variety, and since I’m into Anime and obscure stuff in addition to the typical round, it’s just not appealing.

    They make a valiant effort though, and I’m sure it will be more than worthwhile for those who have the 3+ DVD at a time plans, IF they don’t require variety, that is.

  • Pedantic

    You mean “hordes”. Hoards is a verb.

  • http://boozingbot.com Joey Lappin

    I think that Blockbuster is still appealing to luddites that have not embraced streaming, such as older people that aren’t easily evolving to life in the cloud.  So I see the DVD market as being a niche.  If I were Blockbuster, I would ditch streaming entirely if they can’t compete effectively with Netflix.  It will save them costs since buying licenses to stream content is costly.

  • batman

    Even under the new dvd only netflix plans, blockbuster is still more expensive. great journalism.

  • batman

    1 unlimited dvd at netflix $8 vs $12 for blockbuster
    2 unlimited dvd at netflix $12 vs $15 for blockbuster

    where exactly is netflix more expensive?

    • Anonymous

      It’s $9.99 for 1 unlimited @ BB (plus no $2 blu-ray upcharge & incls. game rentals).  But, it’s still BB

  • Anonymous

    Dish Subscribers get 3 months service free.  Which I will test out when I pause my Netflix account before the end of the month and give it a try.  While no streaming, I do like that there is no fee for Blu-Ray.  

  • mike bishop

    They closed every BB store within 10 miles of my house. If they actually had one closer I might consider giving them a shot. But not now.

    • Mike Robertson

      EXACTLY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • http://pulse.yahoo.com/_NVLZLS5JKOKZ6AYQJXAGCCDAMQ Melvin Bowman

    I just paid $22.87 for an iPad2 (64GB) and my girlfriend loves her Panasonic Lumix GF 1 Camera that we got for $38.76 there arriving tomorrow by UPS. I will never pay such expensive retail prices in stores again. Especially when I also sold a 40 inch LED TV to my boss for $674 which only cost me $62.81 to buy. Here is the website we use to get it all from, CentHub.com

  • Joseph Bendzinski

    If you have streaming included I will drop netflix in a heartbeat and go with blockbuster.  I chose the streaming netflix plan because I can get DVD at redbox.  But again I say combine streaming and DVD and u got my business.

  • http://twitter.com/Synergi Synergi

    Refund me the late fees your company use to charge for not having a movie back by Noon, (yes even during week day/work days) and maybe (doubtful) I’ll reconsider my stance not to do business with you.

    This company just won’t die. This is the same company that use to brag that half of their profits came from the stupid late fees.

    Netflix might be 60% higher and I could care less. Their customer service has always been great with me..

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