July 23, 2007

NOTHING COSTS MORE THAN IT USED TO:

Netflix cuts prices of two more rental plans (Gina Keating, 7/23/07, Reuters)

Netflix Inc. cut monthly subscriptions for two of its most popular plans by $1 on Sunday, a day ahead of a quarterly earnings report that will show whether rival Blockbuster Inc has further dented the online DVD rental company's growth.

Netflix now has cut prices on its four most popular plans this year, bringing them in line with the prices of Blockbuster By Mail plans.

The two companies are locked in a price war for the second time since Blockbuster launched its online service in 2004.


The real price drop will come when discs are phased out altogether and you just access data files online.

Posted by Orrin Judd at July 23, 2007 9:02 AM
Comments

Getting access online will only increase sales because it'll be that much easier to make impulse decisions. Waiting for discs via snail mail is ridiculous.

Posted by: erp at July 23, 2007 9:33 AM

I've noticed that Netflix has been running a much lighter hand on the throttle lately. Competition is a good thing.
My Internet connection is limited to 12 gigs every thirty days (which is about 3 uncompressed DVDs) so, I'll stick with the snail mail.

Posted by: Bryan at July 23, 2007 10:23 AM
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