Blockbuster has launched a promotion that offers disgruntled Netflix customers free trials to its movie service after Netflix hiked its subscription fees earlier this week.

Blockbuster, which is owned by Dish Network, said that customers who switch to one of Blockbuster's total access plans to receive DVD's by mail will receive a 30-day free trial.

Shares in Netflix, which had headed downward since the start of trading, extended losses after the news and were down 4.3 percent at $286.52 in afternoon trade.

Droves of subscribers complained on Netflix's official blog this week with many threatening to cancel subscriptions after the fast-growing video service hiked prices by up to 60 percent for users of both its streaming and DVD-mail service.

In a statement, Blockbuster called Netflix's price hike shocking and said it would rescue upset Netflix customers.

Dish shares fell 2 percent on the Nasdaq.

(reporting by Liana B. Baker, editing by Bernard Orr)