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Netflix Lowers Subscription Rates by $1POSTED July 24, 2007 LOS GATOS -- Netflix, the world's largest online movie rental service, announced Sunday night it is dropping the price of two of its most popular subscription plans by $1. The two Netflix plans being reduced by $1 provide unlimited DVD rentals and the ability to watch movies and TV series instantly on a PC for no additional charge. The $9.99 monthly plan is reduced to $8.99 and provides unlimited DVD rentals with one DVD out at a time and the ability to watch nine hours of movies and TV series instantly on a PC. The $17.99 monthly plan is reduced to $16.99 and provides unlimited DVD rentals with three DVDs out at a time and the ability to watch 17 hours of movies and TV series instantly on a PC. The $4.99 and $13.99 monthly plans remain unchanged as their prices were already reduced from $5.99 in February and $14.99 in June, respectively. The company said that positive subscriber reaction to lowering the $14.99 plan to $13.99 for unlimited DVD rental with two discs out at a time was an important factor in today's price reductions. "Netflix remains the best movie rental experience on the Internet," said Netflix Founder, Chairman and CEO Reed Hastings. "Netflix pioneered the online movie rental industry ten years ago and remains its leader by offering convenience, selection and value. Today, value got a boost." For the first time, the company also reported a drop in subscribers as it faces fierce competition from Blockbuster. Netflix ended the second quarter of 2007 with approximately 6,742,000 total subscribers, representing 30 percent year-over-year growth from 5,169,000 total subscribers at the end of the second quarter of 2006 and 1 percent sequential decline from 6,797,000 subscribers at the end of the first quarter of 2007. Of the 6,742,000 total subscribers at quarter end, 98 percent,
or 6,609,000, were paid subscribers. The other 2 percent, or
133,000, were free subscribers. © Copyright SVDaily.com |
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