jokah.com

31Jul/070

Online DVD rental price war

Netflix, Blockbuster Make Users Happy, Investors Unhappy. I have enjoyed using Netflix in the past, but the decision of which subscription service to use almost always boils down to price. When Blockbuster introduced Total Access, allowing customers to exchange by-mail rentals for free in-store rentals, I'm sure a good number of Netflix customers defected. Netflix recently announced a price cut on some of its unlimited plans, and shortly after, Blockbuster revamped its subscription plans, essentially raising prices. The 1-at-a-time/3-max plan (was $7.99) appears to be no longer available, and the price of the 1-at-a-time/2-max went from $5.99 to $7.99. Also, BBI is limiting the number of in-store exchanges for the "regular" unlimited plans and charging more for unlimited exchanges under its new "Total Access Premium" plans. It appears that existing customers will not be affected unless they switch.

With Blockbuster and Netflix (NASDAQ:NFLX) locked in a bloody price war over online DVD rentals, the only winner seems to be the consumer.

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