Blockbuster emails ex-customers, begs them for a second chance

Blockbuster is finally trying to lure back the millions of customers it has lost over the years. According to a letter obtained by BGR, the company is asking shoppers to give it another chance.

First on the list to sway consumers is of course pricing. Blockbuser says it has reduced its in-store DVD rental prices by as much as 38 percent. It then compares this to other companies, which have raised prices by as much as 60 percent (a clear jab at Netflix).

Next on the list is a free 30-day Total Access trial and a special discounted rate before September 15, though details were not revealed. Blockbuster first created its Total Access service, which offers DVDs by mail, as a direct response to Netflix. The company underlines that many of the newest movies has released 28 days before Netflix and Redbox, that games and Blu-rays are available at no extra charge, and that there are unlimited exchanges for free in-store movie rentals. The only part that is new is "improved availability, especially of our new release titles."

Blockbuster was once the world's largest video chain with a market cap of more than $5 billion at its peak in 2002. It started to fall apart after pressure from mail-order and digital competitors such as Redbox and Netflix.

In September 2010, Blockbuster filed for Chapter 11 bankruptcy protection in the US. In February 2011, Blockbuster asked the New York bankruptcy court overseeing its Chapter 11 case to allow it to conduct an auction for the company. The company decided to put itself up for sale after a reorganization plan fell apart late last year. Four months ago, Dish bought BlockBuster for approximately $228 million in cash.