There are some huge companies fighting it out over the future of online DVD rental, including Amazon, Yahoo!, Blockbuster, and of course Netflix. One of the short term benefits is that Netflix, along with Blockbuster, will be lowering their 3-out plan from $22/mo to $17/mo starting next month.
I currently have the Netflix 3-out plan, so this is fantabulous news. The fact that one of my monthly bills will be LOWERED!!!
is more than exceedingly welcome, no matter the amount. This is an historic first in the history of paying bills at the powerclown pad.
Quote:
Netflix, Blockbuster in all-out DVD rental price war
By David Lieberman, USA TODAY
NEW YORK — Netflix (NFLX) CEO Reed Hastings may not have planned it this way. But he kicked off a full-fledged price war for online DVD rental subscriptions — and put Netflix's own future in doubt — after announcing last week that Amazon.com (AMZN) might join Blockbuster and Wal-Mart in the fast-growing business.
Netflix lowered its monthly rate to $18 from $22 starting next month.
Now Blockbuster is firing back: Next week it will cut the price of its recently launched online service to about $17.50, from $19.
In addition, the coupons that subscribers get for two free video rentals a month at Blockbuster stores also can be used for video games. And customers will get discounts on new and used videos.
"We have invested a significant amount of money in this business," Blockbuster CEO John Antioco says. "And we are not going to allow a competitor to come in and offer better price value and service."
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