Netflix lowers rental fees to counter Blockbuster
Online DVD rental pioneer Netflix is lowering the price of its two most popular subscription plans by $1 per month, relinquishing millions...
SAN FRANCISCO — Online DVD rental pioneer Netflix is lowering the price of its two most popular subscription plans by $1 per month, relinquishing millions of dollars in revenue in an attempt to regain the upper hand in a cutthroat battle with rival Blockbuster.
With the reductions announced Sunday, Netflix will charge $16.99 per month for subscribers who keep up to three DVDs at a time with no limit on how frequently the discs are mailed back in return for another movie. The price to keep one DVD at a time will fall to $8.99 per month.
The price cuts, which take effect Tuesday, match Blockbuster's fees for similar online services.
Earlier this year, Netflix knocked $1 off two other plans that had cost $14.99 and $5.99 per month.
The latest changes will have a bigger impact on Netflix's finances because they affect the plans most used by the company's 6.8 million subscribers. Management is expected today to quantify how much the price cuts will affect future profits.
Copyright © 2007 The Seattle Times Company
UPDATE - 09:46 AM
Exxon Mobil wins ruling in Alaska oil spill case
UPDATE - 09:32 AM
Bank stocks push indexes higher; oil prices dip
UPDATE - 08:04 AM
Ford CEO Mulally gets $56.5M in stock award
UPDATE - 07:54 AM
Underwater mortgages rise as home prices fall
NEW - 09:43 AM
Warner Bros. to offer movie rentals on Facebook
Ah, the minivan. That target of stand-up comedians and patronizing waves at shopping malls, even as it performs its thankless chores with versatility ...
Post a comment