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  (Source: worldtvpc.com)
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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Latin American Expansion
By Shig on 7/13/2011 2:53:41 PM , Rating: 2
Netflix is AGGRESSIVELY expanding into Central America and that is a very large market.

The large data sets that Netflix has created have made it clear that Americans are mostly *streaming* now, so for me personally, this is SAVING me money, I can do without DVDs.

Now look at Central America, far less internet penetration with a much smaller population having access to internet capable of streaming. So obviously this geographic is going to be getting way more DVDs than streaming stuff.

If people can look past their own two feet for even a second, this is a good thing for the majority number of people. The minority may get 'rubbed the wrong way', but guess what, their business model is about the majority. Go ahead and unsubscribe if you don't like it.




RE: Latin American Expansion
By CU on 7/13/2011 4:33:41 PM , Rating: 2
How is it saving you money? Wasn't there always a streaming only plan that was the same price it is now. It seems to hurt everyone that was streaming and getting DVD's.


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