Netflix Lowers Costs As Blockbuster Prepares To Raise Prices

Netflix Lowers Costs As Blockbuster Prepares To Raise Prices

Netflix has reduced the cost of its 2-DVD plan by $1 to $13.99, matching a move made by Blockbuster earlier this month. Blockbuster had expected to be dancing triumphantly atop the battered and bankrupt corpse of its rival by now, but Netflix’s staying power is causing Blockbuster to re-think its strategy. By the end of the year, Blockbuster will raise the price of its Total Access service, which allows subscribers access to its retail locations.

The company said in the filing that it planned to modify its popular Total Access plan before the end of the year to “strike the appropriate balance between continued subscriber growth and enhanced profitability.”

Netflix’s email to subscribers, after the jump: