Netflix Changing Pricing Structure

[KALEL114]

Netflix users who want both streaming content and DVDs delivered to their homes will now have to subscribe to two separate plans at $15.98 per month. Netflix announced the changes to its pricing structures on the company blog Tuesday, pointing out that there are now completely separate streaming-only and DVD-only plans, and none that include both. The changes go into effect in September for existing subscribers, or immediately for new Netflix members.


Netflix made a name for itself by offering unlimited DVDs delivered to subscribers' houses, but soon became popular for its instant streaming offerings that were rolled into the normal DVD plans. In November of 2010, the company finally decided to offer a streaming-only plan for $7.99 per month—$1 less than the previous streaming and one-DVD-at-a-time plan—with DVD plans as a $2 add-on. So, for unlimited streaming and one DVD at a time, users could still pay $9.99 per month to get both.


No longer is that the case, though. Now, there will be a $7.99 streaming-only plan and a $7.99 DVD-only plan, and if you want both, you'll have to subscribe to both. That's $5.99 more per month than the previous plan for similar features, or $71.88 more per year.


Netflix VP of marketing Jessie Becker wrote that the company had never intended to offer DVD-only plans until after the streaming-only plan went into effect. "Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members," she wrote. "Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering."


Now, movie lovers will really have to decide whether the DVD option is worth the extra money—when it was only a $2 add-on, it was easy to toss in, but an extra $8 might be harder to swallow. Netflix's streaming library is growing at a much faster rate now, but the best movies are still usually limited to DVD on Netflix for quite a while before they become stream-able.


Meanwhile, Amazon continues to add more titles to its own streaming library tied to Amazon Prime, and Amazon's service is still cheaper than Netflix's streaming-only service by about $17 per year. Amazon, however, doesn't offer any sort of DVD rental option like Netflix, so Netflix may still have the widest overall appeal, even with the subscription price increases.

http://arstechnica.com/media/news/2011/07/dvd-only-and-streaming-only-netflix-plans-now-799-each.ars

 

[Spidermatrix53]

This is stupid! A huge selection of their movies are DVD only!

I hope this doesn't last very long or else they will lose customers and be replaced by a better service.

 

[KALEL114]

It will be interesting to see if they change their tune when a majority of their customers either cancel one or the other (streaming/DVD) or just cancel their membership all together. They just raised their prices a few months ago and now this. It's as if they want people to go to Redbox and Amazon. Lol.

 

[Kryptonian Warrior]

Yeah, I'm not paying $16 a month for one Blu Ray and unlimited streaming. I would cancel all together if it wasn't for my daughter. She loves to watch a lot of her shows anytime she wants, so I will definitely be downgrading my membership.

 

[Donut]

I like Amazon but they need to really up their title selections. They do not have some popular shows on there that you would think be on there. Itunes is beating both Netflix & Amazon to the punch in terms of content

 

[KALEL114]

Yeah, I'm not paying $16 a month for one Blu Ray and unlimited streaming. I would cancel all together if it wasn't for my daughter. She loves to watch a lot of her shows anytime she wants, so I will definitely be downgrading my membership.

Yeah my kids love the streaming as well, so as of right now I will downgrade to streaming only as well. I'll keep an eye on Amazon though. It's still in the early stages, but if they can get more content and a PS3 or 360 app, then I will seriously consider jumping on board with them exclusively. I am already going to have Prime regardless, so it would be a real simple decision.

 

[Donut]

Yeah my kids love the streaming as well, so as of right now I will downgrade to streaming only as well. I'll keep an eye on Amazon though. It's still in the early stages, but if they can get more content and a PS3 or 360 app, then I will seriously consider jumping on board with them exclusively. I am already going to have Prime regardless, so it would be a real simple decision.

I sometimes may rent something here or there from Amazon. But I will not be a Prime member for their streaming until they get content that is worth while. Maybe Itunes should do a pay one price thing & then all you want type of thing. Because right now in terms of content. Even if its streaming only Itunes beats both

 

[KALEL114]

I sometimes may rent something here or there from Amazon. But I will not be a Prime member for their streaming until they get content that is worth while. Maybe Itunes should do a pay one price thing & then all you want type of thing. Because right now in terms of content. Even if its streaming only Itunes beats both

Yeah I use Prime for it's other benefits, but would love for them to offer more video content. I don't think Apple would do anything like a subscription. I would imagine the reason they have all of that content is because they sell so much a la carte. They make tons of money that way and studios love it. Netflix on the other hand is constantly trying to keep studio support, because it is the complete opposite.

 

[Donut]

Yeah I use Prime for it's other benefits, but would love for them to offer more video content. I don't think Apple would do anything like a subscription. I would imagine the reason they have all of that content is because they sell so much a la carte. They make tons of money that way and studios love it. Netflix on the other hand is constantly trying to keep studio support, because it is the complete opposite.

I imagine that one of the reasons Itunes is so popular is DRM Free Music & it is very easy to remove DRM from Purchased Videos

 

[The Squirrel]

This is crap. I am not going to pay 15 bucks for one disc at a time. I will be dropping to streaming only. Its gonna suck now when I can't see TV Shows that aren't on Stream.

 

[Motown Marvel]

i look forward to the day when netflix can have their whole library streaming.

 

[MessiahDecoy123]

i look forward to the day when netflix can have their whole library streaming.

That will never happen.

The movie industry would lose too much money from lost tv and cable revenue.

 

[MessiahDecoy123]

I don't mind paying an extra few bucks a month for netflix.

I love their selection.

 

[Tron Bonne]

Yeah, I'm not sure how I'm going to precede with it. I like the instant streaming, and Netflix has done a great job of building the library. But, I use it pretty irregularly myself. There have been months were I barely used it at all. And about 3/4 of my queue is still DVD-only. Not sure if I'm going to pay the extra $8 or just downgrade back to a purely DVD mailing membership.

 

[Raiden]

I decided to switch to 1 DVD checkout with unlimited streaming, and pay a few bucks more than the 2 DVD/unlimited streaming plan that I used to have. Not too happy about it, but I guess I can put up with it for now. If they raise the price anymore in the near future, though, I'll probably say adieu to Netflix for good.

 

[The Squirrel]

I don't mind paying an extra few bucks a month for netflix.

I love their selection.

Yeah I love waiting 30 days after a DVD hits the store to wait in a long line for it to finally arrive in my mail box. I love Netflix, but that is not worth 15 bucks a month.

 

[MessiahDecoy123]

Yeah I love waiting 30 days after a DVD hits the store to wait in a long line for it to finally arrive in my mail box. I love Netflix, but that is not worth 15 bucks a month.

If you only have netflix for new releases then your better off using blockbusters.

But netflix has a far deeper catalogue if you want to see older releases.

 

[The Squirrel]

If you only have netflix for new releases then your better off using blockbusters.

But netflix has a far deeper catalogue if you want to see older releases.

I don't have it for new releases at all, lol. By the time I get to see them, they are old releases. In all seriousness, I do dig deep. But mostly because new ones are so hard to get.

 

[Sentinel X]

This is terrible!
I can see the future already. Low prices for DVD or streaming now then one year later you will be paying the SAME price you are paying now but without the streaming (or vice versa).

In this tough economy I wouldn't be surprised if many people drop netflix. One thing is sure: now, if ever, is the perfect time for similar companies to come in to the market and become worthy adversaries to netflix.

 

[Spidey-Bat]

I hate this change. Personally, I think their streaming library is crap. If you count the movies I've wanted to see out of my own leisure and the 20ish I had to watch for my class last semester, only 2 or 3 were streaming. If you want to watch shows, streaming is good. But movies have a limited selection.

What I hate is there's no discount to get both. There'd be more of an incentive to get both plans if you got $2-3 off.

My family is currently on this plan with Blu-Ray which is $12. We'll definitely just be going to regular DVDs and streaming, maybe ditch one of them down the road.

 

[greenrage36]

Well, crap...while this isn't exactly unexpected, I guess I'll be adjusting my plan come September.

Currently have the 1-DVD/Unlimited Streaming @ 9.99, but I could live with having a DVD-only plan. Streaming is awful nice, but I like digging through the menus on the actual discs, especially on some of the older stuff like anything from the Criterion Collection and what-not...

 

[Tron Bonne]

This is terrible!
I can see the future already. Low prices for DVD or streaming now then one year later you will be paying the SAME price you are paying now but without the streaming (or vice versa).

I really don't see them charging $16 for DVD Only and Streaming Only any time soon. I mean, they did actually lower the price of the DVD at homes with this.

 

[greenrage36]

I really don't see them charging $16 for DVD Only and Streaming Only any time soon. I mean, they did actually lower the price of the DVD at homes with this.

Well as it currently stands you can go with the 3-DVDs-out-at-a-time (unlimited) for 15.99. If my full-time situation got squared away that's probably what I'd go with..

..unless you meant $16 for a SINGLE disc out...which, if that was the case, that would be jacked up! 3-at-a-time..yeah, I can go with that..but just ONE..nada!

 

[Sentinel X]

I really don't see them charging $16 for DVD Only and Streaming Only any time soon. I mean, they did actually lower the price of the DVD at homes with this.

Thats not what I meant. What I was trying to say is that the prices we are paying for currently with DVD and Streaming, will probably become the prices we will be paying for only one of those service a year or two down the line.

The crazy thing is their watch instantly selection is horrendously bad and limited. How is it fair to charge the same price for the dvd by mail option?

 

[greenrage36]

The crazy thing is their watch instantly selection is horrendously bad and limited. How is it fair to charge the same price for the dvd by mail option?

Yeah..I think their movie selection leaves a bit to be desired instant-wise, but I don't mind if for TV stuff, newest seasons aside of course...