New Netflix Plans/Pricing Announced
July 12, 2011 7:21 PM
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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
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
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.
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7/13/2011 9:42:29 AM
Yeah I might take this money from cutting DVDs off and go get Hulu Plus. I'll keep streaming for now.
Netflix is risking shooting themselves in the foot here. I didn't mind the last price increase. But this one is a bit ridiculous. Charging roughly double the prior cost?
Sorry but if they were going to do this, they needed to provide reasons such as massive increases in licensing fees for movies. Put the blame on the movie industry. Not give a BS reason that amounts to "We want more money".
Now if they take this (potentially, depending how many people cancel) higher revenue and drastically improve their streaming options, this could turn into a win for them.
7/13/2011 5:25:27 PM
Yep, they will be losing $7 per month from me alone. I have the 2 DVDs at a time plan and am paying $14.99 + tax/fees (comes out to $16.38), and now they want to split it up and increase the rate to $7.99 + $11.99 per month and jack me for another $5? Kiss my you-know-what. The only reason I'm going to keep the streaming for now is because my girlfriend's kids love watching TV shows on it. Unless they improve dramatically I'm jumping ship completely when a better alternative comes along.
As an aside, they say you're paying an extra $2 per month for the DVD, yet for 2 DVDs at a time they charge an extra $5. I call shenanigans. To me that says you were paying $5+ for the DVDs and the rest for the streaming on the $9.99 plan. The reason for the + is because usually you get a discount for higher quantity, so the first DVD was likely more akin to $6-$7 per month. I hate BS marketing that just tries to excuse stupid decisions.
"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser
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