Posted 12/14/2004 05:30:00 PM by Douglas

The bastards at Blockbuster have finally wised up and realized that they're quickly pricing themselves out of business. What have they done to plug the hemorrhaging business Netflix is taking from them? By dropping late fees.

Blockbuster Inc., the nation's biggest movie rental company, says it will eliminate late fees on games and movies as of Jan. 1 — but if you keep them too long, you buy them.

Wow, that's an improvement - instead of owing for another day's rental, I have to buy the freakin' thing. What are these boneheads thinking?

The offer announced Tuesday suggests that Blockbuster is still struggling to blunt the competitive threat from NetFlix Inc. and cable.

The company had expected to earn $250 million to $300 million in operating profits next year from its unpopular late fees but believes it can make up for the lost income with increased volume — betting that customers, no longer worried about late fees, will rent more movies and games.

$300 million from late fees? Jimminy Cricket! How do these bastards sleep at night? Let's take a look at the business models:

Blockbuster:
75 copies (each) of the latest, overhyped Hollywood turd fests, a few movies from the last decade, and a smattering of three movies made before 1975, and one of them is Casablanca. If they happen to have something you want to watch, be prepared to stand in line at least 10 minutes, pay about $7 for it for two days, and don't forget to swing by on your way to work the next day, or you'll pay another $7.

Netflix:
Every movie on the planet that has been converted to DVD delivered to your door for as long as you want to keep it, and all for $20 month.

I can't imagine what Blockbuster's problem is. I mean, I can't believe they're still around. And I guess they wouldn't be, if they weren't riding on ViaCom's deep pockets.