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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: Morons
By Stuka on 7/13/2011 1:07:45 PM , Rating: 2
I don't know how you do it. 9 times out of 10 the movie I want to watch is not available instantly. Last week I wanted to watch Transformers 2, not available. But thank god just about every B-movie, campy horror or 1940s western is available instantly. I don't get it.

RE: Morons
By theslug on 7/13/2011 1:12:24 PM , Rating: 2
It's good that their streaming service actually has a lot more than what you just described.

RE: Morons
By Reclaimer77 on 7/13/2011 1:27:26 PM , Rating: 3
Last week I wanted to watch Transformers 2

Uhhh, why?

RE: Morons
By JediJeb on 7/13/2011 2:55:02 PM , Rating: 2
I don't get it.

The movie studios are to blame for this, not Netflix. The studios want you to stream all the old westerns and B movies that is how they make money off them because no one would actually spend $15 to buy one, and they make more money streaming those than selling them in the bargain bin for $3. Something like Transformers 2 they can still sell at Wal Mart for $10 or more, why would they want you to be able to stream it and make only a few cents per copy?

Just thank goodness that the MPAA doesn't get their way or you would be paying $7 every time you stream a movie because that is what they would have made at the box office and you got to support those starving actors you know.

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain

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