Netflix lowers price for one plan
Online rentailer says it continues to test pricing
By Jennifer Netherby -- Video Business, 6/28/2007
JUNE 28 | Netflix cut the price on its plan for unlimited rentals with two DVDs out at a time by $1 to $13.99, the company said in an e-mail sent to plan subscribers Thursday.
The company didn’t lower the price of any other plans, but it continues to test pricing, spokesman Steve Swasey said. Swasey said the company had been testing the $13.99 price point for more than a year.
“We decided it was a good time to do it now,” he said, adding that timing was right because consumers responded positively to the lower price.
In its first-quarter earnings call, execs said they wouldn’t rule out price cuts as they battle Blockbuster for subscribers.
Netflix stock was trading down 2.6% at $20.23 midday Thursday.
