Tech & Biz

Blockbuster Canada Targets Netflix With Favourites Pass

by Joe Lofaro | July 26, 2010 at 04:05 pm

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Blockbuster Canada Hopes to Keep Remaining Customers With Unlimited DVD Rentals

Amid poor financial forecasts for the movie rental company, Blockbuster launched a new service for Canadians called Favourites Pass. A monthly fee of $9.99 will grant customers access to an unlimited number of DVD rentals (except for Blu-Ray and New Releases) in all 450 of its local stores.

As of today, subscribers to the new service can rent as many of the eligible DVDs as they wish, but only one at a time. Blockbuster is hoping to keep customers coming back to its stores and dissolve the hype surrounding the Netflix Canada announcement last week.

Now Blockbuster customers will have more choice when it comes to choosing how they want to rent their movies, and best of all, they don't have to sign up with another service to get great deals on their favourite flicks.

Blockbuster is now the second Canadian company to react to the recent announcement of Netflix expanding its service to Canada. Rogers adjusted its download limits days after the Netflix announcement was made, and now Blockbuster is offering its few remaining customers quasi-unlimited DVD rentals in its stores.

Rogers Lowers Download Limit Ahead of Netflix Canada Debut

Blockbuster's outlook has been bleak and many are predicting the company will file for bankruptcy very soon. The Wall Street Journal has even added the movie rental company to its list of brands that will disappear in 2011.

Other players who have entered the movie distribution game such as Netflix, Rogers On Demand, Apple TV, Slingbox, Hulu, Movie Gallery, Redbox, and the soon-to-be-released Google TV, have all foreshadowed Blockbuster's downward spiral to near oblivion. Online viewing habits have soared and the viewing of online videos has contributed to this increase.

Blockbuster still thrives primarily on the traditional in-store rental model and is now playing catchup to these key competitors. The main attraction of each of them is simple: the viewer does not have to leave the home. Whether the content is streamed via the computer, television, gaming console, cellular phone, or is delivered to your doorstep, each key competitor to Blockbuster has the advantage of convenience. The launch of the Favourites Pass may keep its head above water for just a little longer.

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Amy Judd

at 16:50 on July 26th, 2010

I think this is a good idea, but the fact that it does not include new releases may put some people off I think.

Good story - I hadn't heard about this.

Joe Lofaro

at 18:08 on July 27th, 2010

You've got a point. Also, Blockbuster needs to at least start spreading the word re: this deal to benefit from it. I could not find one mention of it on their Website/Twitter/Facebook.

Thanks for the feedback.

a nichols

at 08:46 on July 29th, 2010

Netflix is only one competitor that Blockbuster needs to worry about. I used the Video kiosk an my local grocery store last week. For $1.00 was able to rent movie. For only $2.00 I rented a new release. I loved it. Over the course of a year I know I'm definitely not going to be renting more than 30 movies, which translates into less than three a month. $9.99 per month is still too steep when I can pay far less over the course of a year at these kiosks.

Sorry Blockbuster, I'm afraid your number's up.