Dish takes Blockbuster shot at reeling Netflix

September 23, 2011 - 1:15 PM

SAN FRANCISCO (AP) — The Blockbuster video store chain and new owner Dish Network are ganging up on Netflix with a less expensive way to watch Internet video and rent DVDs through the mail.

Blockbuster and Dish are selling their package for $10 per month, the same price that Netflix offered until it made a change in its service that drove up its rates by as much as 60 percent.

There's a major catch to Blockbuster's new Movie Pass: It's only available if you also subscribe to Dish Network's pay-TV service.

The new offering comes at a particularly vulnerable time for Netflix, the largest U.S. video subscription service. Its 24 million U.S. customers are incensed about the higher prices and a recent decision to spin off DVD rentals into a new website called "Qwikster."