Purposeful Power Player

Tuesday, October 19, 2004

Netflix Sticks to Guns in Online DVD Rental Fight

Netflix shocked Wall Street last week by cutting its subscription prices to $17.99 from $21.99, and announcing it would run at break-even next year in order to fund a push to reach 4 million subscribers by the end of 2005.

The move prompted Blockbuster to undercut its main rival by slashing subscription rates for its two-month-old online service to $17.49 from $19.99.

I subscribe to Netflix...that would be welcomed price cut...since they just raised rates about 6 months I guess.

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