Blockbuster Lowers Online Rental Prices

Dennis Faas's picture

Blockbuster is stepping up its game. The movie rental giant has decided to lower online rental prices in an attempt to battle competitor Netflix.

Up until recently, Blockbuster only offered the Total Access plan, which allowed customers to utilize an online rental system in addition to in-store rentals for $17.99 per month. On Tuesday, the company announced that it would drop the price by a dollar for customers who do not use the in-store portion of the deal. (Source:

Netflix, which does not have any retail stores, offers a similar online-only plan for $17.99 per month. But besides the dollar savings, customers using Blockbuster's new plan, called Blockbuster by Mail, will get a coupon for one free in-store rental every month. (Source:

Blockbuster Online chief Shane Evangelist explained that Blockbuster by Mail gives customers more options. "We recognize some consumers may not live near a store or aren't interested in taking advantage of the free in-store rentals they can get through Blockbuster Total Access," he said. Blockbuster also announced that they would begin offering online plans for as low as $4.99 per month. (Source:

So far, Netflix appears to be winning the online video rental tug-of-war. But although the company can boast a larger subscriber base, Blockbuster's popularity shows the fastest growth. (Source:

"We intend to capture our share of that growth, broaden our customer base and remain the fastest growing online rental service in the marketplace," Evangelist explained. (Source:

Winning the race for customers is very important in this lucrative market. Adams Media Research predicts that the online rental market will grow by 43 per cent this year, with both companies vying to attract the huge influx of customers. (Source:

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