Give 'til it hurts

I collect DVDs, and regularly scour the online DVD forum sites looking for bargains and sales; since I typically do this on work time, it’s a good thing that I’m finally able to relate it all back to telecom. Last week, the bargain forum at the DVDTalk site was abuzz with news of a $150 Amazon.com gift certificate promotion available just for switching over to MCI WorldCom long-distance. Especially so close to the holidays, this was major news for DVD addicts, and if the number of postings to the site is any indication, a lot of people are taking advantage of the offer, with commentary ranging from “This is the best promotion for a phone company I have ever seen” to “This was a good enough incentive to use even those slimeballs.”

The deal brings back memories of the months following the Telecommunications Act of 1996, a halcyon period when it seemed like incumbents and CLECs alike would promise anything—cash, gift certificates, mail-order brides, you name it—just for signing up for their service. Consumers seemed to switch carriers on a monthly basis back then, with the promise of a bigger and better bargain always just around the corner. It’s no shock, for that very reason, that the promotions dried up—the customer churn must have been staggering. In that light, it’s surprising to note that the MCI/Amazon package contains no minimum commitment—already, the message board is thick with remarks like, “Anyway ... next week I'll switch to Verizon where I want to be.” Beyond that, with Amazon now featuring its own wireless store, MCI’s money could conceivably end up in the coffers of AT&T or Sprint.

Really, then, what does either MCI or Amazon.com hope to gain here? None of the DVDTalkers cite MCI’s competitive pricing or customer service when making the switch--it’s all about the gift certificate, nothing more, so it seems highly unlikely that more than a few will remain customers into the new year. As far as Amazon goes, how many more hits must the e-tailer’s finances take as a result of discounts, coupons and promotions before the realization sets in that there’s no longer any such thing as consumer loyalty? With so many deals available on the Internet, and so many Web sites detailing just how easy it is to score them, there are no persuasive arguments for remaining loyal to any one retailer. Ultimately, the same holds true for long-distance. One post already salivates, “What's next ... $300 (from) Buy.com for Sprint???”

For the record, yes, I signed up for MCI, and last night I received my gift certificate. I’m dreaming of just how to spend my $150; right now, that “Planet of the Apes” DVD box set is looking pretty good—unless, of course, I catch any flak for surfing DVD sites when I’m supposed to be working. In which case, Christmas gifts for all my pals at Upstart!

Jason Ankeny is Senior Editor at Upstart. (Info on any stellar deals regarding the “Planet of the Apes” DVD box set can be sent discreetly to jason_ankeny@intertec.com. “Apes” naysayers will not be replied to. Hail, Zaius.)