Blockbuster to Use New Pricing Model

On Friday, Dish Network announced it will discontinue Blockbuster's current $4.99 three-day rental fee and will replace it with a $2.99 single-day rental price. Customers will also have the ability to rent movies for more days at 99 cents per day. Under this $2.99 fee, Blockbuster may offer new releases the same day they are available for purchase, reported Los Angeles Times.

This is an advantage because Warner Bros., 20th Century Fox, and Universal Pictures do not allow rival Redbox to rent their DVDs until 28 days after they go on sale. Netflix is under a similar constraint. In April, Dish bought Blockbuster for $320 million, but has not disclosed explicit plans for the retail store, including how many of its 1,700-plus outlets will stay open.