Our goal is to drive business and competitors' business to our other stores and Blockbuster Online. This transfer of revenue is great for our profitability.
We have seen that customers take the product out on average an extra day or two longer.
[Blockbuster said that the $250 million to $300 million generated by late fees will be made up by revenue coming from greater frequency of rentals.] The no-late-fee program has performed very well, ... We have said that by the first quarter of 2006, we believe that overall rental revenues will be greater than if we would have charged an extended viewing fee.
It's designed to show the value of our service and certainly to drive traffic to our stores.
We tested this in markets across the country. Based on our experience in these tests, we believe we will be able to make that up in rental transactions and lower marketing, operating, and promotional costs.
It's done to protect the member account.
In 2002, the American public watched more pre-packaged movies at home than ever before. ... The home entertainment pie is growing.
We're confident we'll have enough product in stores. We've taken inventory into consideration when rolling this out.
Renting a movie is less a commitment than going out to a movie.
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