Wal-Mart drops online DVD rental prices to a new low

ThunderJon used our news submit to tell us “Blockbuster still may be the best overall deal since you get 2 free rentals per month which can be used for in store DVDs or now games!!!–Thunder”

Wal-Mart Stores has struck the latest blow in a burgeoning DVD price war, putting new pressure on online rent-movies-by-mail pioneer Netflix.The retail giant this week cut the price of its DVD Standard Plan by 7.5 percent, from $18.76 a month to $17.36. The reduction trumps recent price cuts from Netflix and Blockbuster, which now offer similar plans for $17.99 and $17.49, respectively.

A year ago, Wal-Mart was the first to enter the fray. The bellwether retailer followed its usual strategy of undercutting the market, offering a low-cost $15.54 plan limited to two DVDs at any one time, a middle $18.76 tier allowing three DVDs, and a top $21.99 tier offering four DVDs a month. (This week’s price cuts affected only the middle tier.)

Wow, this is getting hairy, how low can these
prices go? With a gorilla like Wal-Mart now in the picture, the pucker factor has got to be getting intense. This must be a concern for the others that are using the DVD as their only livelyhood. Wal-Mart can make money in other ways, such as selling you a new DVD player so they want you to load up on cheap discs.  Don’t forget the $1 dollar McDonalds DVD kiosks that allow you to return the disc at any other participating restaurant. This isn’t a good business to be in right now if you’re trying to make a profit.

Source: ZDNet