Last month when Blockbuster split their Blockbuster Online Rental plans into Total Access and Blockbuster Online-only plans, they created the cheapest option for online rentals.

Netflix has just responded to this price war by discounting their most popular plan prices by $1 (see Netflix price chart). This price change is now effective for both new and existing subscribers.

The new plans cost $16.99, $13.99, and $8.99 for 3, 2, and 1 DVD out at a time, respectively.

Whenever Blockbuster and Netflix are engaged in a price war, the consumer wins out. It remains to be seen where the prices will be going next – but this much is certain – there has never been a better time to rent movies online.

Posted on July 23, 2007