Blockbuster Drops Prices, Netflix Yawns
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Firing the latest salvo in the online DVD rental war, Blockbuster has announced to customers it will lower monthly pricing by $2.50 to $14.99 USD. The cheaper rate takes effect immediately and will last until at least the end of next year, Blockbuster said. But rival Netflix remained unfazed by the news and has no plans to drop its prices.
Netflix lowered its pricing in November to $17.99 USD when faced with growing competition from Blockbuster and retail giant Wal-Mart. However, Netflix says the latest move by Blockbuster indicates the death of the video store is coming; Blockbuster currently offers in-store subscriptions at $24.99 USD.