Yay!
Mike Weldon — December 29, 2005 — Marketing
References: news.yahoo
I think the point most people are missing is that we don't have to watch those horrible commercials anymore.
"LITTLE ROCK, Ark. - Blockbuster Inc. stores in several states are quietly resuming late fees for customers who keep movies too long, rejecting the video-rental chain's national advertising of "No Late Fees!" because they can no longer keep popular movies on their shelves. Many Arkansas stores resumed the late fees Nov. 21 and charges will apply again soon at various stores in Alabama, Mississippi and Tennessee. The Arkansas attorney general's office has heard complaints that the fees restarted without any notice.
Blockbuster last winter said it would drop late fees, but its fine print said the company would charge consumers if they kept the movies too long, then charge a $1.25 restocking fee if the movies were returned. In March, the Dallas-based company settled complaints heard in 47 states and authorized refunds for offended customers.
"At this point we are contacting the other states who we worked with before when we had the settlement with Blockbuster," said Matt DeCample, a spokesman for Arkansas Attorney General Mike Beebe. "The first questions you'd ask in a situation like this is, 'What does this mean under the settlement we already have?' and 'Was this something that was publicized on their (Blockbuster's) part?'"- Associated Press
Trend Themes
1. Resurgence of Late Fees - Opportunity for video rental chains to reintroduce late fees as a way to generate revenue from popular movies that are in high demand.
2. Consumer Complaints - Chance for companies to improve communication and transparency with customers to avoid negative feedback and legal issues.
3. Shift in Rental Policies - Opportunity for rental companies to reevaluate and modify their rental policies to better align with customer expectations and industry standards.
Industry Implications
1. Video Rental - The video rental industry can capitalize on reintroducing late fees to boost revenue and enhance customer experience.
2. Movie Streaming - Companies in the movie streaming industry can attract customers who are dissatisfied with late fees and rental policies of traditional video rental stores.
3. Retail - Retailers can learn from Blockbuster's mistakes and focus on transparent communication with customers to avoid legal issues and customer complaints.
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