Netflix Drops Price of Popular Plans
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Facing increasing pressure from its competitor, Netflix said Sunday that it will lower the price of several of its rental plans by $1 in order to match the current pricing scheme used by Blockbuster. Its three movie out plan will now be $16.99, and its one movie out plan $8.99, with price cuts becoming effective on Tuesday. The move will likely cost Netflix millions in lost revenue.
The online rental industry is expected to grow by 43 percent this year, and the two companies have been jockeying to attract customers to their plans. Blockbuster has the added benefit of a retail store chain, which it has increasing turned to in order to differentiate itself from Netflix.