Advertisement

Blockbuster slashes online rental prices

dvds

Firing another salvo in its ongoing battle with Netflix, Blockbuster lowered its prices for online DVD rentals, from $17.49 to $14.99 per month for unlimited rentals. Netflix charges $17.99 per month for a similar plan. Although Netflix created and dominates the online DVD-rental category, it has faced increasing competition from Blockbuster, which is struggling to expand beyond its retail-store business. The price drop follows a previous round of cuts in which NetFlix slashed their monthly price from $21.99 to $17.99, and Blockbuster followed up with their reduction to $17.49. This time, Netflix vows not to mimic Blockbuster's cuts (not yet, anyhow.)