Sunday, July 22, 2007


Locked in a fight with Blockbuster for online movie rentals, Netflix announced on Sunday a $1 drop in two subscription plans -- matching Blockbuster's fees and opening a vein on company revenue. The Associated Press reports:
Netflix will charge $16.99 per month for a plan that allows subscribers to keep up to three DVDs at a time with no limit on how frequently the discs can be mailed back in return for another movie. The price for a similar plan that lets customers keep one DVD at a time will fall to $8.99 per month.
Netflix earned $49 million last year but has already warned Wall Street that earnings and subscriptions are flattening. The new price cuts take effect Tuesday.

Blockbuster is in worse shape -- $49 million lost in the first quarter this year -- but its subscribers can order online and have the option to pick up or drop off DVDs at brick-and-mortar stores. No waiting for movies, a distinct disadvantage for Netflix.

1 comment:

Anonymous said...

On the other hand, with Netflix:

No intrusive identification requests.

No dealing with surly teenage employees or incompetent managers.

No feeling like you're giving money to the "man" who put mom and pops down and made it impossible to find a decent (read: not wildly popular) film in entire cities.

No feeling that you're walking into a brick and mortar building that is still standing merely because of unreasonable return policies and exorbitant late return fees.

Blockbuster has decided to mend its ways; I am still holding a grudge.