Fuji FinePix M603 problem

On the side of my M603, is a red light, that when charging, stays red.

Last week I tried to charge it after a few weeks of inactivity, but the red light just flashes and it will not hold a charge. I've tried it in and out of the cradle but it still does not work.

Does this mean the battery is dead and needs replacing?

In the interests of money saving, is there a cheap alternative to the local shop?

I really like this camera, but is there a better alternative if the battery proves costly?
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