SAN FRANCISCO -- Online DVD rental pioneer Netflix is lowering the price of its two most popular subscription plans by a dollar a month.
It's giving up millions of dollars in revenue in an attempt to regain the upper hand against arch-rival Blockbuster.
The price cuts take effect Tuesday and match the fees charged by Blockbuster for similar online-only services.
The latest changes will have a big impact on Netflix's finances because the price reductions are being made on the company's two most widely used plans.
Netflix's stock price has already dropped by 24 percent so far this year amid worries about tougher competition from Blockbuster and video downloading services.
It's giving up millions of dollars in revenue in an attempt to regain the upper hand against arch-rival Blockbuster.
The price cuts take effect Tuesday and match the fees charged by Blockbuster for similar online-only services.
The latest changes will have a big impact on Netflix's finances because the price reductions are being made on the company's two most widely used plans.
Netflix's stock price has already dropped by 24 percent so far this year amid worries about tougher competition from Blockbuster and video downloading services.