Netflix Lowers Bargain Plan to $4.9922 Jan, 2007 By: Jessica Wolf
Netflix has dropped its lowest-tier subscription plan to the bargain bin price of $4.99 per month.
The impulse-priced subscription allows for two rentals a month, one title out at a time, replacing Netflix's prior $5.99 option.
Over the last year, as the online rental pioneer has battled for subscribers with Blockbuster, both companies have experimented with increasingly low pricing on the mail-order rental services, albeit with more restrictive quantities. Blockbuster's low-end plan is $5.99, one DVD out at a time, two per month.
The $1 price drop comes as Netflix's main competitor Blockbuster has targeted online DVD rental pioneer Netflix with a television advertising blitz for its Total Access offering that lets users pick up and drop off rented titles at Blockbuster store locations.
Netflix will announce Wednesday whether or not it has reached its stated goal of at least 6.3 million total subscribers by the end of 2006.
Blockbuster has reported 2 million subscribers, with a target of 4 million by the end of the year.
As of the third quarter of 2006, Netflix registered 5.7 million subscribers.