Netflix lowers prices again, one ups Blockbuster
By Danny Mendez
Netflix and Blockbuster have become each other’s worst enemies in the past few years, and neither is taking the battle lightly. Today, Netflix is cutting the price of its two most popular plans by a dollar.
Less than one month after Netflix’s latest price cut, comes price reductions on it’s two-at-a-time and three-at-a-time plans. Cnet reports the two-at-a-time plan will drop form $13.99 to $12.99 per month and the three-at-a-time plan will drop from $16.99 to $15.99 per month. Unfortunately, because of the way Watch Now works (customer’s get 1 hour of video on demand for every dollar they pay per month), the price reduction means Netflix’s Watch Now service will drop one hour for both plans. Netflix has not yet updated its website with the new pricing plans.
Blockbuster is looking to eliminate Netflix by offering similar but more expensive pricing with options to rent/trade movies at its brick and mortar stores. Blockbuster bought the video on demand service, Movielink, for $7 million, so we may see a similar video on demand service coming from Blockbuster soon.
At this point, Blockbuster has the upper hand because it can/will offer everything Netflix can plus brick and mortar store services, but because Netflix lacks brick and mortar stores, it can keep costs down, providing better prices.
Either way, competition is great for consumers, and this proves exactly why.
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Entry was posted
on Thursday, August 16th, 2007 at 1:56 pm
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Read more entries by Danny Mendez.
Stumble It!
November 23rd, 2007
If you want to rent blue-ray movies (since buying them is so expensive) Netflix, not Blockbuster, is the way to go. I started with Blockbuster’s 3-at-a-time plan, but canceled it minutes later when I realized that all the blue-ray movies I put in my queue were on a waiting list. Not so with Netflix. They always have enough blue-ray movies available for rent. That’s a big plus for Netflix–and a great big minus for Blockbuster, if you ask me.