Netflix has recently lowered their prices for 3 DVDs to $16.99, and for a select few (million) customers, they’re trying a lower price point of $15.99 to see where the ‘sweet spot’ is.
These price cuts come on the heels of Blockbuster acquiring Movielink earlier this month, a move that many claim will be a major part of Blockbuster’s strategy to compete with the well entrenched Netflix.
“Hey, keep those price reductions coming, Netflix! Pretty soon, they'll be giving them away. We have a price war on our hands between Netflix and Blockbuster, folks, and it looks like we movie buffs will be the winners.”
It seems that a major price war is starting up, and that’s nothing but good for consumers. It might also end up being a great time for services akin to iTunes; for a few dollars more than renting you can simply own the movie via digital distribution.