Blockbuster Fires Off Email Notifying Customers of Price Increase

blockbuster_front.jpgWhat kind of price war is this? Yesterday we saw proof of Netflix cutting a dollar off its three-disc at-a-time plan resulting in a $15.99 monthly tariff, and today a tipster shows us an email from Blockbuster talking about raising prices. But there's some good news in that email for existing customers.blockbuster_inside.jpg The good news is that Blockbuster has decided not to raise prices for its existing customers. Our tipster was understandably relieved to see that his plan won't be affected by these changes. The tipster's two-DVDs-at-a-time unlimited plan (as long as exchanges are made in the store) runs $14.99 a month, but he's telling us Blockbuster will be charging $21.99 for that same unlimited plan for new subscribers after August 31. blockbuster_new_plan.jpg Blockbuster decided to make those changes a few weeks ago—we knew about its crippling of its unlimited plans back on July 27. That was long before Blockbuster heard about that Netflix price cut announced yesterday, which some commenters here on the Giz told us was not applicable for subscribers living on the East and West Coasts. But then we heard that a Netflix call center employee got a memo saying that the Netflix price decrease on its "three discs at a time" plan affects 6.7 million customers. Sounds like a majority.

It's great that existing Blockbuster customers won't see a price increase unless they change plans. But come on, Blockbuster, you can do better than that. It's your move. Netflix has a three-movies-through-the-mail price of $15.99, and your price for that same plan is $16.99. Let's see a corresponding price cut for 6.5 million of your customers. [Thanks, Ben!]