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January 2, 2007

How low can Netflix go?

Filed under: movies — Rocky Agrawal @ 8:16 pm

Netflix is testing a new $3.99 a month plan. (If you’re already a subscriber, you need to logout to see the offer.) This plan is a re-pricing (for new subscribers) of the current $5.99 plan, which allows subscribers to rent a total of two movies a month with one out at a time. At $2 a movie, this beats most movie rental offers.

It’s great for consumers, but it doesn’t bode well for Netflix or its investors. Fortunately for them, it’ll take a while for the studios to get their act together on digital delivery.

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