Tuesday, July 12, 2011

Netflix's Value Is Over

via Deadline:

Netflix is about to become less compelling bargain for people who want to stream videos and also watch DVDs: The company's abandoning its $9.99 a month plan that enabled subscribers to watch unlimited video streams and also have one DVD out at a time sent via mail. The price for that combo service will jump to $15.98 as Netflix requires consumers to separately order unlimited streaming for $7.99 a month or 1-at-a-time DVD rentals for $7.99. The new pricing begins immediately for new customers, and on Sept. 1 for existing ones. Netflix already offered the streaming-only service, and is spinning this as a price break for DVD-only subscribers. "By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail members," Chief Service and Operations Officer Andy Rendich said in a release.

A 60% price hike is a price break? Interesting logic. And by "interesting," I mean "fucking stupid." Netflix is continuing its mission to keep downloading popular. Especially if this price hike isn't coupled with a much larger selection of streaming content.

5 comments:

Ed South said...

It amazing how Netflix went something like 10 years making one great business decision after another and just about transformed the way people consume home entertainment and then within the course of a few months they have made one horrible decision after another! The website is near impossible to navagate with the ease it once had and several of the cool features of the original site are gone. Now is a good time for somebody else like Blockbuster, Amazon...or anybody to swoop in and make a stake in the DVD rental by mail business

sanford said...

I am rarely use netflix as I have my sons info I only used it to watch season four of Friday Night Lights. Even at 16 dollars for both renting a dvd and streaming is cheaper than going to the movies. I just talked to blockbuster, there one movie plan is more expensive than netflix. How ever you can stream movies and they only charge when you watch the movie. I would be real reluctant to down load movies any more as I think I got a virus from downloading Dexter using VUSE. Because the blockbuster near my home was closed, my only alternatives are going to Red Box where your choices are really limited or waiting for movies on demand, which are also some what limited.

James said...

Aw come on... it seems fair enough. The long term business model that Netflix seems to be trying to push is to get ALL of their content streaming. Their library has expanded some, and to be honest, I never seem to use the dvd ordering feature anyway.

Look at it this way: you know how Netflix's model destroyed Blockbuster and Hollywood Video? Well, the only places to really survive that were local video stores. They will be the places that will have the content that netflix doesn't.

Or... you know. People will pirate.

SamuraiFrog said...

The last thing I would call it is fair. Without a significant increase in streaming content, it's double-charging simply because they can get away with it. And it's the second price increase in a year. During a recession. People are just going to do what they did with the last price increase, which is downgrade their plans, so it's not only a shitty way to treat your customers, it doesn't benefit your business one bit.

GarrettCRW said...

I for one shall be dropping Netflix in September. There are simply far too many gaps in the streaming library, as my using the service to watch the classic Doctor Who series has proven. Worse yet, some shows and movies appear to have limited runs on the streaming side of things.

I do believe that this is in part the doing of the studios, who have repeatedly shown the inability to harvest the goose's gold eggs without killing the goose.