Netflix cuts price for 2-at-a-time DVD rental plan

NEW YORK (Reuters) - Online video rental company Netflix Inc. has lowered the price of its two-at-a-time DVD rental plan by $1, to $13.99 a month, according to an e-mail sent to subscribers on Thursday.

Netflix's customer Web site reflected the new price for the plan, which allows a subscriber unlimited rentals but possession of only two videos at any given time.

Prices for the company's most popular three-at-a-time plan remained unchanged at $17.99 per month, $1 higher than that of rival Blockbuster Inc., which introduced a mail-only plan earlier this month.

The Netflix price cut is the latest move in its three-year war against Blockbuster for dominance of the online rental market, which PriceWaterhouseCooper projects will grow to 20 million subscribers and $3.4 billion in consumer spending by 2011.

Shares of Netflix were down 1.6 percent, or 34 cents, at $20.44 in morning trade on Nasdaq.

(Reporting by Michele Gershberg; additional reporting by Jeremy Pelofsky in Washington)