Blockbuster Online is reducing its three-DVD rental subscription price again, this time to $14.99 per month.

Blockbuster Online is reducing its three-DVD rental subscription price again, this time to $14.99 per month.

The price, which is effective today (Dec. 22), comes just two months after the online service lowered its three-DVD plan to $17.49. In early November, Blockbuster Online competitors Netflix and Walmart.com lowered their three-DVD plans to $17.99 and $17.36, respectively.

The company hopes that the new $14.99 plan -- which entitles Blockbuster subscribers to unlimited rentals, with three movies out at a time, as well as no late fees and two free in-store movie or game rentals per month -- will generate new business. An exact subscriber count is not known.

"To date, more than half of our online customers are new to Blockbuster or reactivated, meaning they have not shopped at our stores in the past six months," says Shane Evangelist, a Blockbuster senior VP and GM of Blockbuster Online. "Plus, through the two free monthly store rental coupons, we are giving subscribers an incentive to come into our stores where they are being exposed to our new offerings including an expanded movie retail section, movie and game trading and our store-in-store game boutiques."

Blockbuster Online's inventory has been expanded to include 30,000 titles. By mid-January, the service will also boast 23 distribution centers.

The $14.99 price is guaranteed through January 2006.