Netflix Cuts Two Rental Plans by $123 Jul, 2007 By: Erik Gruenwedel
Netflix Inc. July 22 will cut $1 from the monthly price of two of its four rental plans.
The news July 23 sent Netflix stock tumbling almost 10% to $17.69 per share in mid-day trading.
The Los Gatos, Calif.-based online DVD rental pioneer is locked in a price war with Blockbuster Inc., whose Total Access online rental, in-store return program has taken market share and new subscribers from Netflix.
The $9.99 monthly plan, which allows for one rental out at a time and nine hours of streaming on a PC, was reduced to $8.99. The $17.99 plan for three movies out at a time and 17 hours of streaming was reduced to $16.99.
The $4.99 and $13.99 plans were not affected following their respective $1 price cuts in February.
Netflix reports second-quarter results July 23.