Jul. 10th, 2003
Blockbuster will test a new in-store subscription service modeled on the similar on-line one pioneered by NetFlix. For a monthly fee, customers would be able to rent as many films as they like (with a maximum of three out at any one time) for an unlimited period without having to pay late fees. Video Store magazine also reported that the grocery chain Albertsons is testing a $19.95-per-month subscription model in their video areas at more than 800 stores in the West.
I really see the severe contradiction between this and their "guarenteed to be in stock" for the big hits policy. The latter only works when people return them in the 2 1/2 days their alotted, and without the penalty for late returns, it means having to stock even more copies of the "big hits", leaving less room for archival stuff (and probably the total elimination of the VHS section), as the used-dvd sales section will grow in proportion.
