Blockbuster, the once-powerful movie and video game rental chain, said Tuesday it would add a rent-by-mail option for video games, as it struggles to keep up with newer business models from rivals.
Current and new subscribers to Blockbuster's By Mail program now have the option to not only rent videos from the company's website, but also video games, and have them mailed directly to their homes. Subscriptions start at $8.99 per month to rent discs on an unlimited basis -- but one at a time -- with no late fees as long as customers continue subscribing.
In July, the New York Stock Exchange delisted Blockbuster, and the company is currently scrambling to do what it can to avoid bankruptcy. The chain is nearly $1 billion in debt.
Blockbuster's video game by mail option comes eight years after the foundation of GameFly, a rent-by-mail service that specializes in video games. Blockbuster has been
testing the service in a limited trial.
While Blockbuster's business model is heavily reliant on physical media like DVDs, other rental companies like Netflix have been more efficiently making the transition to digital. Netflix's "Watch Instantly" option streams video to PCs and game consoles, and doesn't cost extra to rent-by-mail subscribers. Blockbuster has also seen strong competition from video rental kiosks like Coinstar's Redbox.
"This enhanced offering supports Blockbuster's multichannel strategy and shows our commitment to being the leading provider of home entertainment content," Blockbuster digital entertainment SVP Kevin Lewis in a statement.
