December 23, 2004
Netflix Says NO to more Price Cuts
The CEO of Netflix has said they will not match Blockbuster's new price cut to $14.99 a month for 3 at a time unlimited online rentals. The company tried to lower prices once and Blockbuster with its business life at stake seems to only be willing to go lower. In a valiant attempt to bash his competition, the CEO of Netlfix said all Blockbuster is doing is accelerating the move online.“In my view, Blockbuster just killed the video store by offering $15 pricing for online, but maintaining $25 a month for store-based subscriptions,” Hastings said. “They are telling their customers to go online.”
Since this new price is only guaranteed till January 2006, it's pretty obvious this is just a marketing ploy by Blockbuster to drive up its user base and then raise prices later.
