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Blockbuster DVD Rental Responds to Competition

Everyone knows that Blockbuster DVD rental is one of the longstanding kings in the movie rental industry. With large stores all over the country and extensive selections of both games and movies (VHS and DVD), Blockbuster has been very successful in acquiring and maintaining a large customer base. However, prices have gone up due to general inflation and its due time of 12:00 p.m. makes it harder to return movies on time and easier to acquire expensive late fees.

The emergence of a number of online movie rental companies has also put another strain on Blockbuster by increasing competition. In order to deal with some of these problems and compete with the new companies offering unlimited rentals and no late fees or due dates for one monthly subscription price, Blockbuster has now entered the online DVD rental market.

Incentives of Online Blockbuster DVD Rental

The online version of Blockbuster DVD rental works the same as most of the other online rental companies. By paying a monthly price of $17.49, the customer gets unlimited rentals that can be checked out three at a time. Customers can keep these rentals as long as they want without paying late fees and worrying about due dates. They can keep a selection of movies in their account queues so that a new movie is immediately shipped to them when a previous rental is returned.

Blockbuster’s selection of over 25,000 titles easily competes with the larger online rental companies, and its additional offer of game titles provides an advantage over NetFlix, the most successful Internet company for movie rentals. However, Blockbuster adds an additional benefit to its online service that correlates with its traditional movie stores. Each month, customers of its online service receive two coupons for a movie or game rental from the store itself. This incentive gives customers to ability to choose between continually receiving movies at their home and also using the free coupons to rent a movie from the store when they need or want it immediately. Apparently, Blockbuster is not willing to let go of its dominant position in the movie rental business so easily.

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