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Netflix puts UK plans on hold

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Oct 15, 2004

Netflix will cut its subscription price for unlimited monthly DVD rentals to $17.99 from $21.99 from 1 November. Its closest rival Blockbuster offers unlimited online rentals for $19.99 per month.

Netflix is currently the market leader in the US online DVD rental market, but it is now facing increased competition from retail giants Blockbuster and Wal-Mart, as well as an expected service from online retailer Amazon.com.

Netflix said third-quarter net income was $18.9m compared with $3.3m the year before.

In recent months, UK market for DVD rentals has been bracing itself Netflix entry to the UK market. At the time, Netflix said it had set aside $7.5m dollars for the planned launch.

According to Screen Digest, the DVD rental market is expected to be worth £376.1m by 2006, already 14.1 million households own a DVD player and over 1 million of these households rent a DVD every week.

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