Blockbuster Shuns Total Access Plan, Now Only 5 Free Exchanges a Month

Blockbuster had one significant advantage over Netflix, and it was the free exchange of rental DVDs with the in-store movies from the nearby Blockbuster store. Today they changed that plan and allow only 5 free exchanges with the local Blockbuster store.Many chose Blockbuster online over Netflix because of the free exchange plan in their "Total Access" plan. Today Blockbuster announced a change of policy, by limiting only Five Free in-store exchanges a month, after which the customer has to pay a $1.99 per exchange for every additional exchange.

For a $17.99 per month plan (3 DVDs), the customer is allowed only Five Free in-store exchanges per month. For a 2 DVD plan $14.99 per month, only 2 exchanges are allowed, and for 1DVD Plan $9.99 per month, only 1 exchange is available.

Blockbuster is trying to curb the number of movies the customer takes in a month. This is not good news for the customers; it is like throttling your own customers. The reasons they are giving for the change in the plans are the following:

Based on a member renting and returning two sets of DVDs in one month on the 3 out plan (with 5 in-store movie exchanges) for a total of 6 online rentals. Five (5) online rentals are then exchanged in-store for a free movie rental under BLOCKBUSTER Total Access, valued at the average in-store movie rental price of $4.00 each, totaling $20 in one month. Adding that to the base membership fee of $17.99 for the 3 out plan gives you a total monthly value of $38.

First of all their online shipping of movies is horrendous, takes too much time to ship the movies. Because of the free In-Store exchange the delays were ignored, but now it will be quite obvious. I don't think any customers will be pleased by this policy change. First they get the customers and then drive them around with inane policies. I am sure many will switch to Netflix. Before Blockbuster had a "No Late Fees" option, but then changed it quickly and charged restocking fees. If they are not interested in keeping their plans for a long time, they shouldn't advertise it in a big way and withdraw it few months later. Next time no one will believe when Blockbuster posts their ads on TV.

One reader suggests this policy is applied only for new customers not for existing preferred customers (renting 3 DVD monthly plan), but I doubt that it will last long also.

Ref: Gizmodo