Netflix Drops Price of Popular Plans

By the Betanews Staff | Published July 23, 2007, 11:47 AM

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.

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I dropped netflix TWICE. Kept getting shattered discs in the mail. Go ahead and blame the post office, whatever, it kept happening and I was tired of getting them.

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I currently pay like 10 dollars per month for a BB plan, they send me a movie, I watch it I bring it back to the store get another movie for free. Rinse and repeat. It is the greatest 10 dollars you can spend. Rentals are normally 4.25 each, Just one movie being mailed to me is worth two rentals.

I mean I really can't believe everyone is not doing this. Now add in no late fees and I wonder how BB or anyone can survive at those prices, or lack thereof. It feels almost as if you were being ripped off all those years paying 3 or 4 dollars per movie, with late fees.

I really honestly think they implemented that "exchange in store program" to help keep the shipping costs down. I don't know what it costs to shp each movie out, let's say at least 50 cents and you get 3 movies shipped to your house and back thats 3 dollars, have a guy drive store to store picking up their boxes and bringing them back to a distro center makes more sense, lets say 30 stores in the area prevents 200 movies from being mailed back each day, that is a heck of a lot of money saved from the usps.

Netflix is identical to the movie by mail concept as Blockbuster, but you can't compete with that in store exchange program, you double your movies and you don't even have to wait.

Competition is a wonderful thing isn't it?

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I've been very unhappy with NetFlix lately. I think they are 100 X's better than BB but I think they have gotten bigger than they were ready for.

It shouldn't take 13 weeks to get a copy of Smoking Aces. It was listed as 'Very Long Wait' on the #1 spot of my queue for 13 weeks!

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Netflix is the Sh1t so far. No complaints here.

What happens when you go to a Blockbuster to turn in your movies for some new releases and they don't have any copies to rent?

I still have a card somewhere, I don't think I've been to a Blockbuster in ten years. I do use Hollywood :) Video around here but our local family owned store is the best.

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I agree. I dumped Blockbuster a very long time ago and have never looked back. I actually stopped using them well before I started using netflix.

I return a movie Monday and get a new one for Wed. How can you beat that? And I never have to leave my driveway :)

Blockbuster is just promoting laziness... finished that movie? Great, come get a couple more so you can keep sitting on your a** at home. Then when you are done with those, you'll get your new ones in the mail! :)

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Um, if they don't have that new release then you can get something else and then you can wait for the new release that's in your que as opposed to Netflix where you only have one option. I have the 3 rental plan and I can potentially have 6 movies from blockbuster at once (which I currently have at my house). It's not like you have to return the exchanges before they ship the new ones.

Netflix = return your movies by mail
Blockbuster = return by mail, or return to store/exchange for a new one while others are being mailed to you

I don't see why anyone would want fewer choices.

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I joined Netflix a couple of months after they started and had very few problems with them. I did switch to Blockbuster just to give them a try and switched back after only three months. Blockbuster didn't ship from the top of your list all the timer. They often shipped from done int he middle of the list. Netflix ships from the top and only skips if something is out of stock when it is time for your next one to go out.

I would never switch back to BB again.

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If blockbuster would ever open a store within a couple miles of me instead of about 15 I would switch from NetFlix in a heartbeat.

Not saying NetFlix is bad in any means, but the convenience of being able to rent from a store as well as online would be great.

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The reason why Blockbuster dropped their price a dollar was because of the fact that those people who live 15 miles or more from a Blockbuster store don't really benefit from the "Total Access" plan ($17.99). So, the customer has the option of dropping to just a 3-out plan (Called Blockbuster By Mail) for $16.99.

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