Netflix Members to Benefit from New Low Prices

Netflix Members to Benefit from New Low Prices

Company Expands Price Reduction Begun Last Month, as Two Popular Plans Are Cut by $1

The number one rated Web site in the world for customer satisfaction just gave people something more to love: lower prices. Netflix, Inc. (NASDAQ: NFLX) , the world’s largest online movie rental service, today announced it is dropping the price of two of its most popular subscription plans by $1.

The price reduction will benefit a majority of Netflix’s more than six million members, as well as many more who will join Netflix in the coming months for a customer experience rated number one in independent research conducted by ForeSee Results and FGI Research. For one low fee, Netflix members receive movies and TV series on DVD and can also watch a growing number of them instantly on their personal computers (PCs) over the Internet.

The two Netflix plans being reduced today by $1 provide unlimited DVD rentals and the ability to watch movies and TV series instantly on a PC for no additional charge. The $9.99 monthly plan is reduced to $8.99 and provides unlimited DVD rentals with one DVD out at a time and the ability to watch nine hours of movies and TV series instantly on a PC. The $17.99 monthly plan is reduced to $16.99 and provides unlimited DVD rentals with three DVDs out at a time and the ability to watch 17 hours of movies and TV series instantly on a PC.

The $4.99 and $13.99 monthly plans remain unchanged as their prices were already reduced from $5.99 in February and $14.99 in June, respectively. The company said that positive subscriber reaction to lowering the $14.99 plan to $13.99 for unlimited DVD rental with two discs out at a time was an important factor in today’s price reductions.

“Netflix remains the best movie rental experience on the Internet,” said Netflix Founder, Chairman and CEO Reed Hastings. “Netflix pioneered the online movie rental industry ten years ago and remains its leader by offering convenience, selection and value. Today, value got a boost.”

Today’s announcement lines up the lowest prices Netflix has ever offered consumers, along with the same industry-leading service that subscribers have come to expect. It also reinforces the company’s credentials as the only online movie rental service to offer the added benefit of immediate gratification. Netflix members can select movies and TV series from a growing library of more than 2,000 titles and start watching them on their PCs in as little as 30 seconds.