Blockbuster this week launched Blockbuster Online, an Internet-based rental service that lets subscribers rent DVDs by mail.
Subscribers pay a $20 monthly fee and get up to three DVDs at a time by mail. There are no return dates, limits on rentals or extended-viewing fees. Subscribers also get coupons for two free in-store rentals each month.
The service is part of Dallas-based Blockbuster’s strategy to position itself beyond its neighborhood stores. The chain will combine its three-month-old store-based subscription service Blockbuster Movie Pass with online subscriptions next year, allowing customers to use the same account in both channels.
Online subscriptions hit $280 million in 2003, a fraction of the $8.2 billion U.S. movie rental industry. Blockbuster plans aggressive marketing to establish its foothold, and to grow the segment.
“We plan to quickly establish ourselves in this arena by aggressively marketing, pricing and combining our online program and in-store capabilities,” said Blockbuster Online VP-General Manager Shane Evangelist in a statement.
Banner ads and links on MSN and AOL tout the new online subscription service. Later this year, subscribers can manage their accounts via MSN and AOL. Subscribers set a “queue” that lists the movies they want to rent; Blockbuster mails the first three, then mails the next selection on a subscriber’s list each time a DVD is returned. Shipping is free.
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