If you’ve watched any TV around the first of the year, you probably saw the new BLOCKBUSTER® commercials touting “the end of late fees.” Glenna and I got into a discussion about what exactly that meant. Of course, it was prompted by the presence of two videos that I was pretty sure were overdue.
I figured that BLOCKBUSTER® was just making a semantic change. Instead of calling it a “late fee”, it would now be called a “rental extension fee.” Glenna believed that it meant that there were no more fees. Ever. And you could keep a movie as long as you wanted.
Neither of us were right. Here is what the BLOCKBUSTER® FAQ has to say:
Movie and game rentals are due back at the date and time stated on the transaction receipt. There is no additional charge if a member keeps a rental item beyond the pre-paid rental period. However, if a member chooses to keep a rental item more than a week after the end of the rental period, Blockbuster will automatically convert the rental to a sale on the eight (8th) day after the end of the rental period. Blockbuster will charge the membership account the selling price for the item in effect at the time of the rental. The selling price will be discounted by the amount of the initial rental fee paid by the member at the time of rental. If the member returns the item within 30 days of the sale date, Blockbuster will credit back to the membership account the amount previously charged to the member’s account or the member’s credit card, as applicable, for the selling price of the item, but the member will be charged a minimal restocking fee.
So, there are still fees, but they do allow you to keep a movie out for an additional seven days without getting charged. Overall, I think it is a pretty fair policy. We’ll have to see what it does to their bottom line since we had a Trivial Pursuit question the other day that went something along the lines of “What company made $800 million in late fees in 2001?”