Why is Blockbuster doing the free LOTR thing? (1 Viewer)

[MichaelW]

Current Deal: Pay $25, get 10 DVD rentals over 10 weeks ($2.50/per but only one each week), BUT you also get a 2-disc LOTR DVD when it comes out.
Figuring out that LOTR (2-disc) will come out at around $20 this seems like a no brainer decision. They even asked if I wanted the widescreen version...
Anyone have any idea why they are doing this? Seems like they've got to be losing money, but I'm sure they have something figured out...

 

[rutger_s]

1. You need a membership at Blockbuster to do it. So if you're not a member, you might sign up just for this promotion.
2. Makes them money. How? That $25.00 gift card you bought can only be used for ONE rental a week. Want anymore rentals, you'll have to pay for them.
So they make back the "lost" revenue for The Lord of The Rings: Fellowship of The Rings DVD/VHS on extra rental fees accrued during the 10 week use of the card.
You can also save $25.00 and wait for Kia Motor Company to announce its Lord Of The Rings promotion this summer. Rather than paying any money to anyone...you test drive a Kia car, get a mail-in coupon for your choice of The Fellowship of The Rings on either DVD or VHS, and send that in for the movie.

 

[Sean Moon]

Simple how they make money. Odds are when you come to redeem those rentals on the card you are likely to rent more or buy candy and whatnot. Most people do, others do not. They make the money on attaching other films onto the free ones. It gets you back into the store, which is the main focus of it.

 

[Mark Zimmer]

Not to mention New Line is probably subsidizing the promotion heavily to get the beaucoups advertising bucks that Blockbuster can wield. 9 out of 10 of the adverts I've seen for LOTR have been theirs. I'd be surprised if BB is paying $5 a set when all's said and done. They can more than make that back on all the prepaid rentals they sell that will never be redeemed.

 

[Jim Golden]

I took advantage of the same deal when Shrek came out. I showed up to pick-up my "free dvd" on the release date and they were sold out!

I asked the manager "when will you get a new supply?" He said he didn't know, so I got a refund! Just a subtle warning...

Jim

 

[Sean Moon]

The being sold out was stupidity on the managers part for not checking how many discs to hold for preorders. Blockbusters computer system automatically send enough for pre orders then some shelf stock(usually). It is up to amangement to pull and hold the reserves. When I was store manager at multiple blockbusters, there were no issues with pre orders becuase I knew to hold the ammt pre sold and I had common sense to check the number before street. So make sure the manager at your local store isnt a complete moron.

 

[Peter Overduin]

Figuring out that LOTR (2-disc) will come out at around $20 this seems like a no brainer decision

I'd be surprised if BB is paying more than 7-10 bucks for this DVD. Ordering a gzillion copies for over 5000 stores would put some downward pressure on their cost!

 

[Jeff Kleist]

Well, then, you scream that you'll never buy a KIA, you've heard they lose half their bluebook value when you drive them off the lot, and that you'll tell all your friends how badly you were treated
They'll probably buy you one anyway

 

[streeter]

one reason that Blockbuster does this is so that they can show their stockholders how 'impressive' their DVD performance is... of course, they'll only tell them how many DVDs are rented in total, and not how many of those were free or heavily discounted.

 

[DavidEC]

Is this "Blockbuster" offer nation wide or local markets only? I have not seen a single TV advert or other print advert in my area for the free "LOTR" DVD.

--David

 

[DeepakJR]

I called my local Blockbusters and they all told me that they did not know anything of this offer. Is it only in specific markets or how does it work?

thx, l8rz,
Deepak Jr.

 

[Nick Sievers]

Is this "Blockbuster" offer nation wide or local markets only?

They are offering it at Blockbuster in my area all the way over here in Australia.

 

[Jon_Are]

One other angle not yet mentioned: with the restriction of just one per week for ten weeks, only a percentage of those 10 free rentals will be redeemed.

I did the Shrek deal too, and it became a semi-burden keeping track of the freebie rentals. The first few weeks it was easy, but after awhile it became "Did I rent something yet this week? Does the week end on Saturday? Sunday? How many free rentals do I have left??"

Blockbuster, of course, makes it more difficult by giving out such info only if asked.

Jon

 

[Jimmy M]

On a slightly more positive note, if you live in Hawaii or in Massachusetts, the free rental cards are still good for 10 rentals, one per week, but you have two years to redeem them.

Jimmy!

 

[Matt Wallace]

The ad money is the real saver in the situation. As a manager of a rental store, I can tell you the number one statistic that you look for is customer visits, i.e., traffic. Anything that guarantees return visits is as good as gold. If it's subsidized by ad revenue lessening your out of pocket costs, WOO HOO! Anything that drives memberships and visits is, as Martha Stewart migh say, "a good thing". Unless of course you are talking about stock notes, but that's a different topic
Matt

 

[Scott Weinberg]

I think the biggest benefit Blockbuster receives is a solid boost in membership numbers. Also, Jon Are mentioned a good point: you get ten DVD rentals, but most people won't use all of them. (Plus I THINK these rental coupons don't cover new releases. Since I haven't been inside a Blockbuster in about 6 years, I'm just going on old info.)
But the bottom line is this - and I feel I must at this point add that pointless old acronym "IMO" - we really should STOP giving Blockbuster Video our money! Ignore these silly promotions, buy the DVDs you want from a reputable outlet, and then just rent DVDs whenever you feel like it! OK, I'm gonna go now. Sorry for turning a legitimate response to an interesting question into yet another "Scott No Like Blockbuster" crusade.
(Can't wait for this LOTR DVD!!)

 

[Joshua Clinard]

Why don't you like BlockBuster. Now that they are stocking plenty of widescreen releases?

 

[streeter]

Joshua:

-they put independently owned stores out of business... by the thousands. Many of these stores were crappy, but some were reputable and passionate about movies.
-they don't carry many older titles. their catalogue selection is limited.
-they're hypocrites: they don't carry NC-17 titles, but they do carry soft-core porn.
-many stores have horrible customer service.
-When you're only a couple hours late, you still have to pay the same $[3.99] 'extended viewing fees.'

I think most people nowadays go to Blockbuster because there are no other stores in their neighborhood. I'd go elsewhere if I had a different place near me. My entire city doesn't even have a single independent store.

 

[Adam_WM]

Well, tonight I stopped by Blockbuster and got me a 10 rental card and as mentioned above, I live in MA, and it's good for 2 years! Not just 10 weeks! WOOHOO!!!!

 

[Qui-Gon John]

And it is good on new releases, 2 nighters. I've used it twwice so far for exactly those type of movies.