Lovefilm has undercut rival film streaming company Netflix.
Lovefilm's new introductory unlimited streaming price is £4.99. Dubbed Lovefilm Instant, this can be accessed on PS3, Xbox 360 and iPad.
Netflix launched on PS3 this weekend at a price of £5.99.
Wonderful - some competition at last.
The Lovefilm price wasn't reflected on the Lovefilm site at the time of writing. It was announced in a statement today.
Lovefilm also revealed it had reached 2 million monthly subscribers, thanks to record-breaking numbers of sign-ups during the Christmas period.