Blockbuster Busts the Bums

According to CNN Money, Blockbuster Inc announced that it is completing removing all late fees on videos, DVDs and games as of January 1st. Before you go planning to keep Knights of the Old Republic 2 until you beat it though, be warned. You’ll be given a week grace period to bring the disc back at no charge, however beyond that, you just bought yourself a game.

The worlds largest brick and mortar chain of video rental stores will keep their due dates, one week for games and some movies, 2 days for new releases and doesn’t intend to raise their rates, but if a title isn’t returned within 30 days, it’s renter will be charged full price less the rental fee as punishment.

Even if you do return Navy Seals before the 30 day mark, but after your grace period, you will be refunded the full charge, less a bogus restocking fee. The change may be in response to heavy competition from mail-order type rental companies like Netflix and Gamefly. Earlier this year, Blockbuster announced a similar plan to allow monthly rentals of games and movies, charging one monthly price for unlimited movies, but so far has seen little interest, according to analysts.

A quote from the company finds them optimistic as a result from test markets: “In no-late-fees test markets, the increased rental transactions and retail sales offset the lower level of revenues resulting from eliminating late fees.”

In the end though, the late fees aren’t gone, just shifted around and steepened.