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Blockbuster launched its Blockbuster Online rental service at blockbuster.com last week, challenging Netflix at the anticipated price of $19.99 for a three-out plan that also gives subscribers two free in-store movie rental coupons each month.
"We think now is the opportune time for Blockbuster to enter the online rental business, and we plan to quickly establish ourselves in this arena by aggressively marketing, pricing and combining our online program and in-store capabilities," said Shane Evangelist, Blockbuster W and GM of Blockbuster Online.
Blockbuster formed marketing alliances with Internet service providers MSN and AOL to promote the site to up to 75 percent of the U.S. Internet audience, at first with banner ads and promotional links. Within months, the partners plan to let subscribers add and manage their movie queue from MSN and AOL.
Subscribers can also choose to have five DVDs out at a...