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.


About Rakesh Agrawal

Rakesh Agrawal is Senior Director of product at Amazon (Audible). Previously, he launched local and mobile products for Microsoft and AOL. He tweets at @rakeshlobster.
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