Netflix Unveils New Subscription Pricing; Subscribers Using Both Streaming and Disc Pouting
It was pretty hard not to see this coming. Netflix has today announced that the $10 per month one out at-a-time DVD rental plus streaming option will no longer be available. The new plans are A) $8 per month for one DVD at-a-time, B) $8 for unlimited streaming and C) Combine both A and B for $16 per month.
So after you get done sobbing in a corner, what are you gonna do come September 1 when the old $10 plan dies?
First, we are launching new DVD only plans. These plans offer our lowest prices ever for unlimited DVDs – only $7.99 a month for our 1 DVD out at-a-time plan and $11.99 a month for our 2 DVDs out at-a-time plan. By offering our lowest prices ever, we hope to provide great value to our current and future DVDs by mail members. New members can sign up for these plans by going to DVD.netflix.com.
Second, we are separating unlimited DVDs by mail and unlimited streaming into separate plans to better reflect the costs of each and to give our members a choice: a streaming only plan, a DVD only plan or the option to subscribe to both. With this change, we will no longer offer a plan that includes both unlimited streaming and DVDs by mail.
So for instance, our current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:
Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming), for $7.99 a month.
The price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). For new members, these changes are effective immediately; for existing members, the new pricing will start for charges on or after September 1, 2011.
I’ll be sucking it up and
I’ll be sucking it up and paying the extra $6 a month. It’s annoying but still the best bang for the buck out there. Although, at this price point, it’s making Amazon prime look a lot better to me (if only they had more content).
We’ll switch to streaming
We’ll switch to streaming only and utilize Redbox, Blockbuster Express, and Blockbuster stores for new releases. Unfortunately, that means losing access to the huge library of Netflix DVDs. It’s too bad they don’t have an individual DVD rental system where you could get occasional access to hard-to-find titles without having to have a subscription.
Unlimited streaming + VUDU
Unlimited streaming + VUDU might be a good alternative.
I’ve read a lot of stories on
I’ve read a lot of stories on the matter but I havent seen mention of anything more than 2 DVDs at a time. We currently have the ‘8 discs plus blu-ray’ plan – I almost shudder to think what the new cost of that will be…if it exists.
Go to your account page and
Go to your account page and select “Change plan” to see the new options and pricing – ouch!
Whatever the plan for disc,
Whatever the plan for disc, it is an additional $8 for streaming.
Does anyone think this move
Does anyone think this move will backfire on Netflix and result in more disc rental only plans vs. the streaming only or streaming + disc?
I myself stop using Netflix,
I myself stop using Netflix, I dont rent DVDs and Blu Ray content, I borrow movies from my friends and buy what I like
.
I’m going to give it a few
I’m going to give it a few days to see if Netflix reacts to the negative press. If not, I’ll cancel.
i’m a big believer in
i’m a big believer in Netflix, but man…how can you justify such an INSANE price hike in 1 day…they must’ve known there would be insane backlash. It’s odd for a company SO focused on customer satisfaction (this is the same company that if their service goes down even for 1 night, they proactively contact you and credit your account.) so i’m curious to see what comes of this…
I’m dropping to one DVD and
I’m dropping to one DVD and streaming only now. I can’t believe it’s more expensive then my, now old, plan of two DVDs and streaming…
They have to be trying to get
They have to be trying to get people to switch to streaming only. It’s so much cheaper.
I thought Netflix was underpriced before, but this was an extreme rate hike
Cheaper for Netflix* that is
Cheaper for Netflix* that is
I’m actually saving money
I’m actually saving money with the new plan. I don’t use their streaming service and only get movies on Blu-Ray, when possible. I’ll occasionally visit a local RedBox, but NetFlix has better selections. I’m amazed that so many people are griping about the new pricing structure, considering it used to cost us about the same for DVDs only. NetFlix added unlimited streaming for free and are only asking for compensation for a service they’ve been providing at no extra charge. I find it hilarious that everyone is whining now that they have to pay for a service that used to be free. NetFlix just got you hooked on a service and now you’ve got to pay the piper if you want to keep it.
I don’t think people realize how much it costs for NetFlix to stock and distribute all of the titles they have on hand plus what it costs in shipping. They see an extremely small profit margin on each disc they rent. I imagine that they also have a high rate of lost and damaged discs based on the way they’re shipped.
It’s clear that they prefer to offer streaming services in favor of mailing out actual discs. I don’t see the price of each individual service as being outrageous or overpriced considering what you get for the money. For those that only rent an occasional movie on disc, it would probably be a better deal to use RedBox for those occasions and NetFlix for streaming.
My major problem with this is
My major problem with this is there is no discount for having both streaming and disc subscriptions. I’m fine with paying more for the service, but at least give me a break if I’m buying more than one service from you. Since there is no grandfathering for current customers (other than the plans don’t change til sept 1), at least show some loyalty to those customers that have been with you for a while. I’ve been a Netflix customer since 2002 and with this second rates hike this year I’m now seriously looking for an alternative. I guess I’ll be going back to the disc only plans because it seems to be the only way to get all the titles I want. I just can’t justify the extra cost for the streaming when there isn’t enough available titles.
frijones wrote:
My major
[quote=frijones]
My major problem with this is there is no discount for having both streaming and disc subscriptions. I’m fine with paying more for the service, but at least give me a break if I’m buying more than one service from you. Since there is no grandfathering for current customers (other than the plans don’t change til sept 1), at least show some loyalty to those customers that have been with you for a while. I’ve been a Netflix customer since 2002 and with this second rates hike this year I’m now seriously looking for an alternative. I guess I’ll be going back to the disc only plans because it seems to be the only way to get all the titles I want. I just can’t justify the extra cost for the streaming when there isn’t enough available titles.
[/quote]
Actually, they are offering you a discount. The streaming-only service was about the same price as it currently is but the disc-only service has been reduced in price. Based on the previous price structure the combined services are now less than they were previously had the streaming service not been included with the disc rentals.
I believe the move was done
I believe the move was done to try and get people who don’t really need the mail service to drop it all together since the mail service costs them a lot more to run than the streaming service. I personally don’t use either all that much, so unfortunately I think i’m going to cancel all together and just use Amazon on-demand that’s built in to my TV.
By the way, as of now, the stock price is up over 2.5% after the news. It seems the investors believe this is a good move.
Back to streaming only and
Back to streaming only and Redbox for me. At least RedBox finally got BluRay in my area.
I went ahead and cancelled.
I went ahead and cancelled. I like Netflix streaming but at the same time…I hate that it has virtually no parental controls. You can setup controls but it is across all genres and doesn’t provide for a PIN. Next to worthless.
Sounds like at least from a
Sounds like at least from a number of comments, Netflix may be converting many to streaming only or less discs which is exactly what they want. Poll time!
My big problem with Netflix
My big problem with Netflix streaming is the lack of premium content. I’m not sure why netflix decided to go this route without first launching a premium content service such as Vudu. Maybe it’s because their vast device compatibility prevented them from launching a pay per view service.
For those of your who were on the 1 at a time plan, does Vudu sound like a better option for you? Keep the unlimited streaming, and supplement with Vudu?
Ugh… Not good news. I am on
Ugh… Not good news. I am on the 1 dvd at a time plan. I liked the ability to stream, but I can’t say that I did very much of it at all. Those of you that are going to only streaming, what are you watching? Of the 174 movies in my queue only 46 are instant, mostly documentaries. Also, the UI for me is tough. On Sage I am using Playon, which is fine if it is in your queue, but if not it is impossible to find something. Say I want to put on Veggietales, I would go to Children, then 0-6 months the U-Z, nope, how about 6 months to 1 year the U-Z, nope, 1-2 years, W-Z, nope.. etc until I found it.
I really like the ability to watch on my phone, but I have never really done it other than to try it. It will be just discs for me, with a strong consideration of Amazon Prime. I am a free Prime subscriber, and I just love the free 2 day shipping, so I would pay $4 a month for that alone, throw in some streaming, it makes it even more of a deal.
So after all I might be saving money on Netflix, but it will just transfer to Amazon instead.
Yeah but Vudu doesn’t support
Yeah but Vudu doesn’t support 7MC.
Crim wrote:
Yeah but Vudu
[quote=Crim]
Yeah but Vudu doesn’t support 7MC.
[/quote]
I’m using Vudu as an example of paid streaming. Insert whatever one at a time streaming service you want…
I use AppleTV for my paid streaming