June 28 (Bloomberg) -- Netflix Inc., the largest provider of mail-order movie rentals, cut the price of one of its nine rental plans as it competes with Blockbuster Inc. for online subscribers.

Netflix began charging $13.99 a month for subscribers to rent an unlimited amount of monthly movies with a two-at-a-time maximum. That's down from $14.99. The company left prices on its other plans unchanged.

Blockbuster, the world's largest video-rental chain, yesterday said it may raise prices for its Total Access program, which allows customers to order movies through the mail and return them at stores. Profits at both companies have suffered as they compete to add online subscribers.

Netflix, based in Los Gatos, California, had been testing a price change for the plan for about a year, spokesman Steve Swasey said today. He declined to comment on Blockbuster's statement, made in a U.S. regulatory filing.

Shares of Netflix fell 93 cents, or 4.5 percent, to $19.85 at 4:02 p.m. in Nasdaq Stock Market composite trading after jumping 6.5 percent yesterday. Shares of Dallas-based Blockbuster fell 4 cents to $4.16 in New York Stock Exchange composite trading.

To contact the reporter on this story: Danny King in Los Angeles at dking19@bloomberg.net

Last Updated: June 28, 2007 16:07 EDT