Verizon has cut the price of the Galaxy Tab to $500 contract-free. The $100 price drop should take effect soon and will also include $60 of movie rentals from Blockbuster’s app or Samsung’s Media Hub. As a bonus, anyone who bought the Android tablet within the past two weeks can get a refund for the price difference. Can’t complain about that.

The price drop comes just two months after release and since we don’t have any information on how well the seven-inch slate has been selling, we have to assume that things are not good. Then again, maybe they are just trying harder to compete. Motorola’s Droid Xoom will be launched at CES next week after all.

[electronista]