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Netflix Cuts Two Rental Plans by $1

23 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.

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