BB to offer subscriptions

I read this on www.videobusiness.com.

"To address the decline in traditional movie rentals, the company plans to roll out its in-store movie subscription program chainwide by the middle of the year and launch an online subscription program in the fourth quarter.

Blockbuster offers in-store subscriptions in about 25% of its locations, where it has "significantly increased the revenue and profit we get" from customers who sign up, according to Antioco."


This is what I thought was going to happen, so after testing a 2 movie plan out, we are rolling out our subscriptions starting March 1st.

[Tim]

Thanks for the update!  Any news on pricing from either of the two big guys?  March is so big for us that I think I'll wait till April 1st for the local media blitz, as I've been saying.  Independents should want to do this before the chains...  Since this is so imminent, I was surprised there was so little price related brain storming and critiquing at the "Sub-Plan" thread.  I hope to see some more now...

-Tim

We based our prices on what a person rents per month. For example; a person that rents 1 movie a week will spend between $16 and $20 a month on rentals, so we priced it to fit into their price range.

These are our prices:
1 movie: $19.99
2 movies: $34.99
3 movies: $44.99
They can add games also for another $5.00

Just an update on my test.
18 people on the test
all of them love it and will stay with a program
6 of them are moving up to a 3 movie plan
1 of them is buying two plans, one for them and one for their kids
utilization is at 58%

[jayluft]

Cox,
How do you track the 1, 2 or 3 movies at time in your system?

[mcmarc]

A couple more questions:

Are the people who signed up prone to have late fees?

Do you see yourself having to order more product, or do you think it will stay the same?

Do you feel that you will lose business to BB if you don't do this?



I feel like a grasshopper to everyone's ant but I'm not too worried about chain's subscription plans.  I'm fortunate enough to live in an area that is anti big business, and I feel if we keep offering great service and selection, we'll be ok.

I do plan on changing my rental prices and times when I'm a year old, when it looks like I won't lose my house!

marc

Jay,
We use Phoenix Software, it tracks customers and lets us know at the time of checkout if a subscription is open.

MCMark,
Not all of them, some of them use it for the unlimited movie exchange and some for the reasonable price, and some customers get it for the stress free way the program works.

Product ordering will be the same. Actually during the weekend they get returned faster. Right now I'm sure some of you have had a person rent a movie and keep it for a week or even more right? Well one of the guys on my test program used to be late alot, sometimes more than a week. Now that he is on the test he has never had a movie out more than 4 days. Not too bad.

In the long run I think we all would. People will be loyal up to a point but after that they will choose the service that is best for them, and by far the subscriptions are the best for the customer.

[tekfuel]

How do you transition from month to month?

Here's a scenario.

Let's say they paid for a plan on the 1st of the month and they rented a movie on the 29th of that month. Instead of returning it on the 31st, they returned it "late" on the 2nd of the following month.

If they renew the following month, I guess it wouldn't be a problem. But what if they don't?

Also, do you give them the option to renew their plan automatically if they used a credit card to pay the first time? What if they pay in cash for only that one month?

Have you written up a subscription plan policy? Perhaps you can share that with everyone.

- Tek

If they do not renew the subscription late fees apply to all items out when the plan runs out. Using your example if their subscription ran out on the 31, it would start compiling late fees starting the 1st.

We require a credit card to be on file to sign up for a subscription. It will automatically renew every month unless A) they come in and pay for it before the renewal date or B) they cancell.

I have come up with a subscription plan agreement. If you are interested in seeing it you can private message me and I will try to get it to you.