Online movie rental war in the United States is heating up between the world's largest movie rental chain Blockbuster and the number one online movie rental service, Netflix. The race has been in the works for years now, but the last few months have been interesting, as both companies have discounted heavily their subscription prices.
But Netflix's chief executive pointed out how desperate Blockbuster must feel right now and how committed they are to online rentals, as they seem to be prepared to sacrifice their traditional video store business in order to fight off the competition from Netflix, Wal-Mart and others. "In my view, Blockbuster just killed the video store by offering $15 pricing for online, but maintaining $25 a month for store-based subscriptions," Netflix CEO Reed Hastings said. "They are telling their customers to go online."
Netflix's cheapest monthly subscription currently costs $17.99.
Source: Reuters












