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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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RE: Too bad
By JediJeb on 7/13/2011 11:25:46 AM , Rating: 3
This is what all the complainers here are not taking into account. The movie studios are finally seeing what kind of revenue stream they can get from the Netflix and RedBox type companies and are going to start milking them through their contracts to make up for their lower revenue from the box office lately. If people won't pay $7-$15 to see a movie in the theater or $15-$30 to buy the video when it is released, then why not make them pay it through their rental/streaming service.

I am putting my money on the greedy studios causing this more than a greedy Netflix. I noticed on July 1 that Netflix lost the rights to stream Babylon 5, which upset me since I was up to season 4 and didn't get it finished before it was cut off.

RE: Too bad
By mcnabney on 7/13/2011 1:04:12 PM , Rating: 2
Other way around.

Studios are competing against each other and GIVING Netflix money to offer/advertise their content. In addition, they are paying Netflix a ton of money to delay their release by 4-6 weeks to encourage DVD retail sales.

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