The consumer-friendly price war between Netflix and Blockbuster rages on this week as Netflix cuts the price of its two most popular subscription plans by $1. The cost of Netflix’s 3-DVD plan will drop to $16.99, while the 1-DVD plan will fall to $8.99. The price drops will make Netflix plans $1 cheaper than comparable Blockbuster plans featuring Total Access. Both retailers slashed the price of their 2-DVD options last month to $13.99. The latest move from Netflix is meant to drain much-needed cash from Blockbuster. From the Chicago Tribune:
Stepping up its attack on Netflix also has been hurting Blockbuster, which has had to spend more heavily on DVDs to ensure sure its stores have enough discs to keep up with the additional demand from its roughly 3 million online subscribers. The company lost $49 million in the first quarter.
