"Price War in DVD Rental Fees"

I was just looking through the October 18th edition of the New York Times when I found an article discussing the up-and-coming "price war" on DVD rental fees. It originally talks about Netflix announcing that they are planning on lowering their subscription fee from $21.99 a month to $17.99. This would be two dollars below Blockbuster's monthly fee; Blockbuster responded by proposing to lower their fee from $19.99 to $17.49. The article adds later that Wal*Mart offers a similar service and Amazon.com may be jumping into the market. With all of these new 'firms' joining into the DVD Rental industry, will prices continue to fall? With a supply/demand curve in mind, if there is an increase in supply then there will also be an increase in quantity as well as a decrease in price. So, if all works out correctly, it looks to be that we are going to be facing a new, less expensive way of renting movies... over the net!