Netflix Inc. cut monthly subscriptions for two of its most popular plans by $1 on Sunday, a day ahead of a quarterly earnings report that will show whether rival Blockbuster Inc has further dented the online DVD rental company’s growth.

Netflix now has cut prices on its four most popular plans this year, bringing them in line with the prices of Blockbuster By Mail plans.

The two companies are locked in a price war for the second time since Blockbuster launched its online service in 2004. Blockbuster plans to spend $170 million this year to win subscribers for its new Total Access plan, which gives online subscribers free in-store rentals.

Netflix CEO Reed Hastings said in April that he planned to grow the company’s subscriber base slowly but profitably until Blockbuster’s losses on Total Access force it to raise prices.

Most Netflix plans let subscribers take out an unlimited number of DVDs, but limit the number a customer can have at home at one time.

The new Netflix prices take effect on Sunday and apply to unlimited plans that were formerly $9.99 per month for one DVD at a time, and $17.99 for three DVDs at a time.

Microsoft Corp. said on Sunday the software maker was taking new steps to protect consumer privacy in the areas of Web search and online advertising and called on the Internet industry to support it.

Microsoft said it was responding to public concern over the recent consolidation of the online ad industry as well as stepped-up interest from government regulators in its call for a comprehensive rather than piecemeal approach to privacy.

“We think it’s time for an industrywide dialogue,” Peter Cullen, Microsoft’s chief privacy officer, said in an interview. “The current patchwork of protections and how companies explain them is really confusing to consumers.”

Specifically, Microsoft said it would make all Web search query data anonymous after 18 months on its “Live Search” service, unless it receives user consent to store it longer. The policy changes are retroactive and worldwide, it said.