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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 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.

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Maybe it is time to switch
By mherlund on 7/13/2011 10:18:23 AM , Rating: 2
Netflix no longer seems like a good deal to me. For $8 a month receiving 1 DVD at a time is about the same cost as Redbox. If it takes 2 days travel time and no USPS delivery on Sunday (and who knows about Sat, even Netflix is fine with no mail on Sat), you would receive a DVD about every 3 days. So that is about 8-9 a month assuming that you watch it the day you get it and send it back.

Now with Redbox, I can rent it when I want to watch it for $1 and return it the next day. Sure, Netflix has a larger selection than Redbox, but how many people really watch older things? (Really, I would like to see some stats on what gets requested more frequently, age of movie, type, etc.)

Putting in the streaming, made this a better deal. Now they don't have enough newer content to have a streaming only. TV shows are great to stream, but getting by DVD would be slow. This combination with the price made Netflix great, now it is just ok.

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