irgeek.net

Blockbuster announced that as of Jan 1st, 2005 they will no longer be charging late fee’s for rentals. Customers who still rent movies the old fashioned way will have the movie for the 1 week rental period, and a 1 week grace period afterwards to return it. Customers who fail to have returned the video within the 1 week grace period are now the brand new owners of a used DVD/VHS tape, charged to thier blockbuster account. However, if they forget for an entire week to return it, and end up purchsing it, and yet don’t want to buy it, they can return it within 30 days for a credit less a restocking fee.

Now i’m not sure exactly what this “credit” is because it doesnt say, I would assum it’s store credit and not a credit to your credit card that they charged it on. Honestly I think this is going to make them way more money that late fee’s ever did.

In related Blockbuster news, Blockbuster has offered to buy Hollywood Entertainment, otherwise known as Hollywood Video. They are offering over $1 billion dollars. They offered $11.50 per share which comes out to $700 million dollars and were they to purchase the company they would assume $350 million in debt that Hollywood Video has aquired. Me personally, I think this can be good or bad. On the good side Blockbuster could run them as 2 independtly ran, competing, companies, however this is not likely. Most likely every video store on earth will be turned into a Blockbuster and as long as they line the right pockets in DC the whole monopoly thing should be a non-issue, case-in-point. Oh well, we will always have netflix and gamefly!