No Late Fees

The biggest beef the average video renter had with stores like Blockbuster was their strict policies on late fees. The euphemism "extended viewing fees" did little to soften the blow, especially as rental windows narrowed and late fees went up. Things got so bad that class action lawsuits were initiated by frustrated customers--and settled in their favor.

Online video rental companies came up with the answer to the consumer's prayers: no more late fees. Movies and video games can now be kept as long as the viewer wants with no fees assessed as penalty. This simple act of giving the people what they want has been the key to the explosive popularity of the online rental phenomenon.

Intimidated by the growth of its competition, Blockbuster reluctantly ushered in what they it termed the end of late fees as well. As confused customers complained when they found they had been charged with buying their late movies, further backpedaling and clarification on the part of the once-proud retail renter was necessary. Unlike some companies' one-week-late-and-you-bought-it policies masquerading as the elimination of late fees, most online renters truly have no late fees whatsoever.

The way this new breed of company is able to provide this great perk is by letting the customer choose how many titles he or she wishes to have checked out at one time. You can keep a movie as long as you'd like, but if you have your maximum checked out, your next movie won't be sent to you until you return one. This simple policy change moved the power from the company to the consumer, and has been responsible for the growth of an entire industry.