Movie rental chain Blockbuster (ticker: BBI) cut the monthly price of its in-store Movie Pass subscription service to $14.99 from $24.99.
The In-Store Movie Pass allows customers to rent as many movies as they want, but can only hold one at a time. This service is different than the Blockbuster Online, which competes with Netflix (ticker: NFLX) and others. BBI is advertising the service at $9.99, having lowered the introductory month price to $9.99 from $14.99. Blockbuster is also cutting the introductory price of Blockbuster Online to $9.99, while the regular price is still $14.99. In addition to lowering the In-Store Movie Pass price, BBI has tweaked its terms, allowing one movie at a time instead of two.
Quick comment: Cutting prices while changing the its terms of its service really means that BBI is offering less for less and might not be the smartest move for a company that is being sued for its deceptive advertising practices. This move is probably a response to Netflix's own marketing sleight-of-hand; Netflix is promoting its $11.99 price, which really refers to its less popular 4 DVD's per month service, not its most popular 3-at-a-time service.