Print 97 comment(s) - last by cellpig.. on Jul 28 at 4:54 PM

Netflix is making two big changes to its plans and prices that will either prove to be successful, or rub subscribers the wrong way

On-demand video streaming and video rental-by-mail company Netflix has enjoyed bundles of success recently, reporting 23.6 million subscribers worldwide this year. But now, Netflix is making two big changes to its plans and prices that will either prove to be successful, or rub subscribers the wrong way.

The first new change is the introduction of DVD-only plans. Customers have the option of paying $7.99 for one DVD out at a time, or $11.99 for two DVD's out at a time, but the plan does not allow video streaming to be included.

The second new change is the separation of video streaming and DVD plans. While current plans bundle the two together for $9.99 per month, the new plans will be either DVD only or video streaming only. A DVD-only plan with one out at a time costs $7.99 per month, and a video streaming-only plan costs $7.99 per month. No longer can they be bundled together.

If a subscriber wants both plans, the monthly cost is $15.98 per month.

According to Netflix, the reason for these changes is to meet demand for DVD by mail, and the current $9.99 plan (which is $7.99 for streaming and an extra $2 for DVDs by mail) does not make sense financially. Netflix believes DVDs should not just be a $2 add-on cost, but a broader, individual plan of its own. Also, Netflix wants to ensure the long life of DVD by mail options.

These changes are effective immediately for new members, but for existing members, these changes are effective September 1, 2011.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Morons
By quiksilvr on 7/13/2011 9:30:36 AM , Rating: 2
I don't think you completely understand what they are doing.

Well over half of its customers do NOT have DVD plans bundled with their streaming service.

As shocking as this sounds, Netflix HAS heard of Redbox (crazy, I know!) and realizes that most people with their streaming only plan are just renting the occasional new release from there.

It costs them over 30 cents to ship a DVD.
It costs them five cents to stream a movie.

They are doing this because they want people to turn away from DVD and move towards streaming because:
1) Its loads cheaper (no facilities, no shipping costs, no broken DVDs or Blu Rays to take care of)
2) Its instant instead of two day lag
3) No bullsh|t trailers and menus to deal with. You just click and the movie starts.
3) Their movie and show selection is quite substantial, and almost everything I have watched has subtitles (although we might have different taste).

If anything, you will just be saving $2 by downgrading to the $7.99 and spending those $2 for the occasional movie.

RE: Morons
By mcnabney on 7/13/2011 12:59:33 PM , Rating: 3

The streaming selection is pathetic at best
The streaming service is down 3-4 times a month - usually at peak times
The resolution is fairly crappy
Zero percent chance of special features/languages/commentary

RE: Morons
By theslug on 7/13/2011 1:06:48 PM , Rating: 2
I don't know where people are getting these ideas about the streaming selection. I've pointed out on a couple of occasions before that this was the case several years ago. Today there is a huge selection of both old and new content that is also quality, especially with TV series. And I don't mean old series no one's ever heard of. They have a lot of popular things on there.

The video problems I can agree with though. Far too often I see content that has strobing/flickering during camera pans, or things are presented in the wrong aspect ratio and therefore the picture is cropped.

The selection is pretty decent, but the video presentation is very spotty.

RE: Morons
By JediJeb on 7/13/2011 2:57:48 PM , Rating: 2
The streaming selection is pathetic at best

Where can you find a better streaming selection?

RE: Morons
By tekzor on 7/14/2011 12:02:38 AM , Rating: 2
no other languages kill the anime streaming for me:(
Will have to stay with stream/2DVD plan -_-

RE: Morons
By quiksilvr on 7/14/2011 10:13:09 AM , Rating: 2
Watch IP Man in HD and tell me the resolution is fairly crappy. Watch Top Gear in HD. And their selection is beast.

"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki