More DVD Price Wars

| 1 Comment

Remember that in early October, Netflix raised its price to $22 for it's monthly service, only to have Blockbuster enter at $20. Netflix countered at $18, and blockbuster countered at $17.50. Well, they're still going at it (rr):

How low can you go?

Like a contestant in a limbo competition, Blockbuster Inc. on Wednesday lowered the price bar for the second time in two months in its war with DVD rental rivals on the Internet.

The video chain slashed the monthly fee for its online subscription service to $14.99 from $17.49, undercutting Netflix's $17.99 rate and the $15.54 charged by Walmart.com, the online branch of retail giant Wal-Mart Stores Inc...

Blockbuster started its online service in August; it has 500,000 subscribers, compared with Netflix's 2.5 million..

I say compare apples with apples: the WM plan for three movies at a time is $17.50--for $15.54, you get two at a time.

Also, while Blockbuster promises 30,000 titles, and Netflix claims 25,000 titles, WM has only 16,000 titles. At the relevant margins, to whom does it make a difference?

1 Comment

Blockbuster is now at $14.99 guaranteed through January 2006.

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This page contains a single entry by Kevin published on December 23, 2004 10:43 AM.

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