How low can Netflix go?

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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About Rakesh Agrawal

Rakesh Agrawal is CEO of redesign | mobile. Previously, he launched local and mobile products for Microsoft and AOL. His personal blog is at http://blog.agrawals.org and tweets at @rakeshlobster.
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