Netflix Announces New Plans and Price Change

[cassanova]

http://blog.netflix.com/2011/07/netf...plans-and.html

The Official Netflix Blog
Tuesday, July 12, 2011
Netflix Introduces New Plans and Announces Price Changes

Jessie Becker, here to share two significant changes at Netflix with you.

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.

Why the changes?

Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didn’t anticipate offering DVD only plans. 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. 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. Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail, led by Andy Rendich, our Chief Service and Operations Officer and an 11 year veteran of Netflix.

Now we offer a choice: Unlimited Streaming for $7.99 a month, Unlimited DVDs for $7.99 a month, or both for $15.98 a month ($7.99 + $7.99). We think $7.99 is a terrific value for our unlimited streaming plan and $7.99 a terrific value for our unlimited DVD plan. We hope one, or both, of these plans makes sense for our members and their entertainment needs.

As always, our members can easily choose to change or cancel their unlimited streaming plan, unlimited DVD plan, or both by visiting Your Account.

[J. Crawford]

... right when I get my iPad...

[anyonefortennis]

Dropped them yesterday. Hello Redbox.

[jmattbassplaya]

Well I was going to get Netflix but not anymore. I can get all the movies I want for free online already anyways...

[hover]

Originally Posted by anyonefortennis

Dropped them yesterday. Hello Redbox.

funny, I've gone the exact opposite, phasing out Redbox and Blockbuster kiosks over the past year unless it's a must-see new release. Otherwise I'll just unlimited stream for the cost of 8 (or less) DVD rentals, now that Blockbuster commands 3 bucks for a one night new release. Why drive way out of my way for the "convenience"? And then have to drive out again?

The sooner we abandon the physical format (and always getting scratched, unplayable copies I might add, some people are a-holes), the sooner we can get the new releases on the streaming plan. I'll pay an extra 5 bucks a month for truly unlimited content streaming.

[anyonefortennis]

Originally Posted by hover

funny, I've gone the exact opposite, phasing out Redbox and Blockbuster kiosks over the past year unless it's a must-see new release. Otherwise I'll just unlimited stream for the cost of 8 (or less) DVD rentals, now that Blockbuster commands 3 bucks for a one night new release. Why drive way out of my way for the "convenience"? And then have to drive out again?

The sooner we abandon the physical format (and always getting scratched, unplayable copies I might add, some people are a-holes), the sooner we can get the new releases on the streaming plan. I'll pay an extra 5 bucks a month for truly unlimited content streaming.

My problem with Netflix streaming is that most of the shows/movies that are the reason for me having netflix are not available for streaming.

[J. Crawford]

Originally Posted by anyonefortennis

My problem with Netflix streaming is that most of the shows/movies that are the reason for me having netflix are not available for streaming.

Amen.

[hover]

Originally Posted by anyonefortennis

My problem with Netflix streaming is that most of the shows/movies that are the reason for me having netflix are not available for streaming.

Read you nothing that I typed? Embrace the streaming and force the hand.

I for one am not adopting another ill-fated format. I refuse to buy a Blu Ray, no matter how low I can get a player for. It's a lost cause. Total waste. Sales on physical media have been on decline for many years. The allure and shelf life of BluRay is shockingly short-lived compared to DVD before it.

Which is why so many companies and retailers are banking on gimmicky 3D t.v., because the industry and their hard-on to phase out CRT's and get a new flatscreen set in everyone's home forced the prices of the tv's and bluray players down so much no one is making any money on them.

3D is a joke. Hopefully it takes BluRay with it. Bandwidth is getting exponentially better, and cheaper, in the long run. Why bother with outdated format? No one really archives that stuff anymore.

[jmattbassplaya]

Originally Posted by hover

Read you nothing that I typed? Embrace the streaming and force the hand.

I for one am not adopting another ill-fated format. I refuse to buy a Blu Ray, no matter how low I can get a player for. It's a lost cause. Total waste. Sales on physical media have been on decline for many years. The allure and shelf life of BluRay is shockingly short-lived compared to DVD before it.

Which is why so many companies and retailers are banking on gimmicky 3D t.v., because the industry and their hard-on to phase out CRT's and get a new flatscreen set in everyone's home forced the prices of the tv's and bluray players down so much no one is making any money on them.

3D is a joke. Hopefully it takes BluRay with it. Bandwidth is getting exponentially better, and cheaper, in the long run. Why bother with outdated format? No one really archives that stuff anymore.

Yeah... that still doesn't change anything about Netflix not having the movies I want to watch on their stream.

I do agree with what you're saying though.

*edit* Ah, I see what you're saying now. Yeah, I don't think that will happen because it would cut into their current strategy.

[anyonefortennis]

Originally Posted by hover

Read you nothing that I typed? Embrace the streaming and force the hand.

I'm not going to miss Dexter just to make a statement - I think HBO, Showtime, etc. are the ones that refuse to allow streaming on their best shows.

[rr5025]

Seems like it won't affect me; I only use streaming.

[anyonefortennis]

And for 'Epic', big visuals, big sound, movies I still prefer a blu ray. While I agree streaming quality is getting better, it still looks like internet porn did back in 1999.

[Unrepresented]

I'm a longtime customer and netflix has managed to alienate me with this decision.

Their streaming content alone isn't worth $8/month. Too many "B" movies, not enough meat. 90% of my searches for content aren't licensed for streaming. If even just 1/4 of my queue was available for instant watch I'd consider it, but nope. They're asking me to pay an additional 60% for a service I thought was fairly priced before.

Screw 'em. And I plan on preaching that gospel.

[MakiSupaStar]

Originally Posted by Unrepresented

I'm a longtime customer and netflix has managed to alienate me with this decision.

Their streaming content alone isn't worth $8/month. Too many "B" movies, not enough meat. 90% of my searches for content aren't licensed for streaming. If even just 1/4 of my queue was available for instant watch I'd consider it, but nope. They're asking me to pay an additional 60% for a service I thought was fairly priced before.

Screw 'em. And I plan on preaching that gospel.

I'm kind of in this camp

[BurningSkies]

I cancelled mine yesterday. I've held my own account and my GF has hers and I really only watch stuff when we're together. Now she's reconsidering keeping hers as well.

We'd go all streaming, but the selection still sucks...not nearly enough, and they pull stuff down all the time too.

[MakiSupaStar]

Originally Posted by BurningSkies

I cancelled mine yesterday. I've held my own account and my GF has hers and I really only watch stuff when we're together. Now she's reconsidering keeping hers as well.

We'd go all streaming, but the selection still sucks...not nearly enough, and they pull stuff down all the time too.

Yeah I agree. If they had more new releases available for streaming I'd keep it but as it stands it's not worth it

[peledog]

Cancelled.

Greed and stock options. They were good because they were different. They are now the same. A%*$*&#s. They always succumb to the dollar.

So sad.

[UnsungZeros]

Netflix is being gouged by the studios. It would be nice if they just admitted that to their customers.

[cassanova]

Originally Posted by BurningSkies

We'd go all streaming, but the selection still sucks...not nearly enough, and they pull stuff down all the time too.

Originally Posted by MakiSupaStar

Yeah I agree. If they had more new releases available for streaming I'd keep it but as it stands it's not worth it

That's what I think has most of the people pretty ticked about the price hike. They're upping the price a rather considerable amount and doing nothing to offer a better product.

I have mixed emotes on the streaming. I like a good portion of what they have, because of the blockbuster hits that it does have that I've never seen before and the many older ones that I haven't seen in quite some time. But overall, I do agree, they need a better selection, it seems most of what I search for is only available on DVD.

Another thing I've had a problem with is their DVD quality. Many times a disc will freeze in mid scene, then resume play a scene or two later.

[KalTM]

What a bummer. I really enjoyed having both, and now I don't know what I am going to do. This is why people turn to The Pirate Bay.