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Will $1 sway where you do business?

Post by Kelly Kearsley on June 28, 2007 at 2:43 pm with No Comments »
June 28, 2007 2:43 pm

Turn on the fans people, because the DVD rental market rivalry is heating up.

Online DVD rental leader Netflix is lowering its monthly fee for one its most popular prescription plans by $1, the company announced today, to match a reduction made by rival Blockbuster earlier this month.

The Associated Press reports that Netflix is now charging $13.99 per month to rent up to two DVDs at a time, down from $14.99 previously. The service mails another DVD after subscribers return one of their other discs in postage-paid envelopes.

The price cut comes less than three weeks after Blockbuster began charging $13.99 per month for the same kind of plan. Dallas-based Blockbuster charges $14.99 per month for a two-DVD-at-a-time program that gives subscribers the flexibility of returning movies to a store instead of through the mail.

Los Gatos-based Netflix didn’t change the fees for any of its other plans, including its most popular option — a program that lets subscribers keep up to three DVDS at time. That service still costs $17.99 per month, $1 above Blockbuster’s price for a comparable plan.

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