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Blockbuster Declines Netflix Price Challenge

23 Jan, 2007 By: Erik Gruenwedel

Blockbuster Inc. has rejected emulating online rental rival Netflix's decision to reduce its lowest-tier subscription plan $1 to $4.99 per month.

Dallas-based Big Blue, which last November launched its Total Access online rental, in-store return program, has employed frequent TV ads aimed at undermining Netflix — a strategy that resulted in 700,000 new subscribers to Blockbuster Online by the end of 2006.

A company spokesperson said the entry-level Total Access subscription plan at $5.99 provides up to 5 free DVD rentals per month — more than double the monthly rentals Netflix offers through its $4.99 plan.

The $5.99 two-out-a-month plan allows consumers the ability to return each DVD at a participating store for a free in-store rental plus they receive a monthly coupon good for one free movie or game rental.

“We think Blockbuster Total Access is a better offer and that value conscious consumers understand that,” said spokesperson Randy Hargrove.

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