Petteri Pyyny
16 Oct 2004 14:21
According to the founder and CEO of Netflix, the world's largest online DVD rental company, the online giant Amazon.com plans to enter to the online DVD rental business as well. "We started hearing rumors about two weeks ago, and we were able to confirm them," Netflix's CEO, Reed Hastings, said during the company's earnings call. Amazon.com denied to confirm the rumors about its upcoming DVD rental service.
In addition to the possible future threat from Amazon.com, Netflix is facing increasing pressure from its archrival Blockbuster and also from America's largest supermarket chain, Wal-Mart. To maintain its market-leading status, Netflix announced that it will cut its monthly charges from $21.99 to $17.99. Blockbuster responded immediately to Netflix's price cuts and decided to cut its monthly subscription charges from $19.99 to $17.49.
More information:
Reuters
Washington Post