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Blockbuster launches challenge to NetFlix.

San Jose Mercury News (San Jose, CA)

| August 12, 2004 | COPYRIGHT 2007 San Jose Mercury News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Dawn C. Chmielewski

Aug. 12--Blockbuster launched a new online DVD rental service Wednesday to compete with movies-by-mail innovator NetFlix, offering lower monthly fees and free movie coupons to attract customers.

Blockbuster's online service lets customers rent an unlimited number of DVDs each month -- up to three at a time -- for a fixed monthly fee of $19.99. That's $2 less than NetFlix charges. Blockbuster subscribers will not incur late fees and will receive coupons for two free in-store movie rentals a month.

"We think now is an opportune time for Blockbuster to enter the online rental business and we plan to quickly establish…

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Source: HighBeam Research, Blockbuster launches challenge to NetFlix.

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