Zip and Rogers Video increase prices after Blockbuster demise

In emails to customers this week, Zip.ca and Rogers Video Direct have announced a reduction in service and an increase in prices.

The move comes just a month after the demise of Blockbuster Canada, Zip and Rogers Video Direct biggest competitor in Canada.

Starting November 1, Blu-ray discs will no longer be available on either Zip’s or Rogers “1 out at a time DVD” plan and customers on higher plans will be charged an additional $1 fee for every Blu-ray rental.

This means that Zip customers with the basic “1 DVD out at-a-time” who want to rent Blu-ray discs will now be forced to pay $18.95 per month plus $1 for each rental, a minimum 73% increase from the current $10.95 per month.

Blu-ray disc renters on Zip’s most popular “3 DVD out at a time” package will now be required to spend an extra $1 for each rental. For someone renting 6 Blu-ray discs a month, that’s $30.95 per month, a 24% price increase over the $24.95 a month they pay today.

In its missive to subscribers, Zip and Rogers Video Direct say that over the last seven years, the cost to mail discs has increased 25% thereby necessitating the price increase. While it’s understandable that increased mail costs might necessitate some price increases, the company does not explain why the big increase in Blu-ray disc rentals. Since the cost to mail a Blu-ray disc is no higher than the cost of mailing a DVD disc, it seems that Rogers and Zip are trying to capitalize on the fact that their biggest bricks and mortar competition is now gone.

Digital Forum members are telling Digital Home they are outraged over the massive increase with many saying they have already cancelled service or will do so at the end of the month.

Discuss in Digital Home’s What’s On Blu-ray, DVD and in the theatres discussion forum.

Comments

6 Responses to “Zip and Rogers Video increase prices after Blockbuster demise”
  1. ME says:

    What a friggin joke…..do these idiots want to keep customers?

  2. Cambo says:

    Simple solution. Don’t buy their services. They’re capitalizing on a small market. Unless there is real competition, they will continue. But, movies aren’t an essential part of life and can be sacrificed.

  3. Mark says:

    I’m a long time zip.ca customer.. just glad I never made the progression to BlueRay. I’ll stick with my DVD’s

  4. Greg says:

    Just further proof that competition is needed in Canada or the greedy monopolies run free doing whatever they want. If I was a customer, I would cancel now!

  5. Puppet Doctor says:

    Well that does it for me. You want to charge $1 extra for a Blu-ray rental fine. I am cancelling my service at the end of the month. Time to join Netflix. Sure it may not have as big of a selection but its $7.99 a month and no waiting for the mail.

    Thanks for your 6 years of service.

  6. Loco Jack says:

    I feel this is direct relation to Blockbuster closing it’s doors. All of a sudden Zip needs to raise it’s prices?? I understand the need for price adjustments in order to stay competitive, but how can Zip expect to keep customers when they are charging $1 extra per Blu-Ray rental. This fee alone increases my fees by almost 50%. I called, and told Zip that I would be cancelling their service as other mail services exist in Canada that didn’t have to raise their rates. I think people are also forgetting that Rogers Video Direct is tied to Zip, and therefore have raised their rates as well. They can try to say the timing of this was a coincidence, but I think everyone knows that plans are always in place from an organizational perspective, and unfortunately in Canada to many customers are willing to accept price gouging. Stand up customers of Canada!!