SAN FRANCISCO (AP) – Online DVD rental pioneer Netflix Inc. is lowering the price of its two most popular subscription plans by a $1 per month, relinquishing millions of dollars in revenue in an attempt to regain the upper hand in a cutthroat battle with rival Blockbuster Inc.
With the reductions announced Sunday, Netflix will charge $16.99 per month for a plan that allows subscribers to keep up to three DVDs at a time with no limit on how frequently the discs can be mailed back in return for another movie. The price for a similar plan that lets customers keep one DVD at a time will fall to $8.99 per month.
I recently downgraded to the 2 movie at a time plan since Netflix selectively dropped its price. With this new move, I decided to switch back to the default, now at $16.99.