Netflix Announces Streaming Only Plans and Higher Prices for DVDs

micsaund writes "While Netflix has continued to drop fees and still maintain a good services, today, they take three steps in the other direction by doubling the cost of the plan you probably already have: 'So for instance, our current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans ... Unlimited Streaming (no DVDs) for $7.99 a month ... 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).' Now, if they could get everything available on streaming, this would be fine, but how many times have you needed to get a physical disc for that oddball movie, or had a movie in your instant queue that magically disappears due to some behind-the-scenes contract expiration or whatever?"

Hmmm

[thebra]

Well I'm not to sure how I feel about this. I currently have the streaming + 1 dvd. I only watch a dvd every few months but the option was still nice to have. There is no way I would pay 8 bucks a month for the few dvds I would watch. But on the other hand the streaming selection is pretty poor so paying 8 bucks a month for just streaming doesn't seem like that great of a deal. I think they've shot themselves in the foot but without a great alternative they will probably get away with it.

Saves me money

[characterZer0]

Now I do not have to pay for streaming that I could not use anyway because I do not user Windows or OSX.

I just switched from 2 DVDs out + unlimited streaming for $15 per mo to 2 DVDs out and no streaming for $12 per month. Same service, lower price.

Thank you Netflix!

Re:Blame the content makers

[rsmith-mac]

Bingo. We all knew this was coming, it was inevitable the moment Netflix made it big and people started unsubscribing from cable/satellite.

The studios originally licensed content to Netflix believing they were an end of the line service - a place for content to go once every other method of squeezing out profit had been exhausted. Instead people stopped buying DVDs, stopped buying $3 episodes off of iTunes, stopped buying Video On Demand, etc. So instead of extracting the last few pennies out of their content, the existence of Netflix has been severely undermining more profitable viewing methods. The studios aren't charities of course and want what they believe they should be making (or to put it more appropriately: they strongly believe in price discrimination), which means if viewers are going to use Netflix as they currently are then Netflix will have to pay more for the right to deliver their content. There's no such thing as a free lunch.

Finally, the next step will be for the studios to license their content to a Netflix competitor for cheap for a short period of time, similar to what the RIAA did with Apple & Amazon. The purpose will be to try to diminish the influence of Netflix, as a large independent content delivery company is going to squeeze the studios on profits. The end result will be that none of the content delivery companies will have enough leverage to use against the studios, leaving the studios in complete control of pricing.

Re:Doubling the value!

[redemtionboy]

Umm, I have netflix on every TV in my house, my laptop, my desktop, my phone, my iPad, and soon my 3DS. My wife and I simultaneously watch content in different rooms all the time. Also, sure, you get 100s of shows, but you only get 1 show per channel at a time, and unless you record it, it's gone. With Netflix I can watch thousands of titles at any moment I want. Sure you do get slightly faster access with TV, but a lot of shows update on Netflix the next day. Also Netflix has tons of great features like party watching on Xbox 360. I watch movies with my best friend who lives 1,000 miles away all the time. I don't see cable having significant benefits over netflix unless there is a particular show you watch that they don't host or you HAVE to watch it the moment it airs. Personally, I've got the patience to wait.