A Blockbuster 2006 For Movie Rental Giant

Blockbuster now has over 2 million online subscribers, exceeding their 2006 goal by approximately 200,000.

by Helen Leggatt

In the last quarter of 2006 alone, they added a massive 500,000 new online customers.

Blockbuster’s biggest online competitor is Netflix.com, who came out tops in a recent customer satisfaction survey, and who boast around 5.6 million online subscribers. Most customers pay Netflix and Blockbuster $17.99 per month to rent up to three DVDs at a time. After they have finished with a rental, customers return the DVDs in a postage-paid envelope and automatically receive the next in their online wish list.

John Antioco, Blockbuster’s Chairman and Chief Executive, believes that a plan giving the customer a choice of where to return DVDs was key to their success in attracting new online subscribers. Called “Total Access”, the plan allows their customers to return DVDs via mail or take them to any of Blockbuster’s 8,000 stores in exchange for a free rental.

"Thanks to Blockbuster Total Access, customers no longer have to choose between renting online or renting in-store, and they never have to be without a movie," he said in a statement.

At the end of 2006 Blockbuster tempted Netflix.com customers to make the jump by swapping free rentals for each Netflix.com mailer they bought into a store.

Capturing a share of the estimated 20 million subscribers will most certainly see Blockbusters and Netflix.com up the ante during 2007.