by Datechguy | July 12th, 2011
Via Twitter we see that NetFlix is doing away with its combined DVD rental and unlimited streaming plans. Here is what is now offered in its place via the Netflix blog:
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.or both for $15.98 (no discount)
Although not listed on the blog there are other options that you can discover by logging into your account
Plan 3: Unlimited DVDs, 2 out at-a-time (no streaming), for $19.98 a month.
Plan 4: Unlimited DVDs, 3 out at-a-time (no streaming), for $23.98 a month.
Plan 5: Unlimited DVDs, 4 out at-a-time (no streaming), for $29.98 a month.
Or you can add a DVD out to these plans for an additional $6 per month up to a max of 8 DVD
My own current netflix plan is 3 DVD’s out at a time and unlimited streaming. it was $17 bucks a month until Jan 1st at which time it went up to $20 a month, to keep that same plan I will now have to pay $23.98.
That’s a 20% increase in Sept over Aug and an increase of over 40% since the start of the year. About $84 a year
This leaves me with several choices:
1…I can pay the new price increase and adjust my monthly budget accordingly
2…I can avoid that new price increase by dropping down to two DVD’s a month (25% less access for the same price)
3…I can bypass the price increase from the start of the year by dropping down to one movie (a 50% drop in service for the old price)
OR
For less than the cost of that price difference I can drop the free streaming from Netflix get Amazon Prime’s free streaming service AND two-day shipping on all orders.
So can anyone explain to me why I would accept the price increase when I can do better by going to Amazon? And without the streaming as a value added, can anyone explain why I shouldn’t just go to cheaper sources of movies and drop Netfilx altogether?
Of course it could be that Netflix WANTS to dump a portion of the streaming or DVD audience as the costs might have become prohibitive.
They made the same mistake Newspapers did. When they introduced streaming they should have offered it at a nominal charge instead of giving it away. Once people get used to getting something for free you’re going to have a hard time convincing them to pay for it, particularly when there are lower cost alternatives available.
Past mistakes not withstanding, from the comments I’m seeing at the NetFlix blog this is a PR disaster in the making. I’ve got a call into their corporate office requesting an interview with Steve Swazey the corporate communications man, I’ll let you know what he has to say.
Netflix has always been very sensitive to its customers. Many times, I have received a bonus home dvd mailing just because they wanted to let me know I am loved. I remember when they bended to public desire for lower prices. I suspect that there will be an announcement soon that they are amending their price structure to please us consumers. But hey….I could just be totally wrong about that. I’m just a shlub….not a high dollar exec.
You guys ever hear of usenet?
For about 10.00 a month and a DVD burner you can have as many movies as you can d/l.
I have netflix and pay roughly 10.45 for streaming and 1-dvd out. I just received their rate hike email that goes into effect “on or after September 1, 2011. That’ll give me a little time to find a better option.
“Your assumption is that the streaming library on Amazon Prime is comparable to the Netflix streaming library. Is that true?”
Couldn’t possibly be much worse. Netflix streaming selection is mediocre at best.
I’ve got Netflix, Amazon Prime, and recently tried Hulu Plus, and none of them have better than mediocre streaming selections. I suspect that it may be a function of the fact that most TV is pretty mediocre at the moment.
Yeah, I cancelled my Netflix account the minute I read the email about the price changes.
They already increased the price once, from 8.00 to 10.00 I believe. On top of that, I was discovering that the selection of instant stream movies is not so good. Even for older flicks.
I saw the change less as a price hike and more as a decrease in services available for the price. I’m already an Amazon Prime customer, so what is the point?
You’ve got insult to injury, on top of it all. I still remember this news report:
http://www.wired.com/gadgetlab/2010/09/netflix-lies-to-canadians-insults-americans-still-looks-good/
Would I have kept Netflix if I were not aware of the CEO’s attitude? Probably. It’s the annoyance factor that motivates you to finally click the links and find the cancellation process.
cheers!
Linda
Your assumption is that the streaming library on Amazon Prime is comparable to the Netflix streaming library. Is that true?
Good question
Libraries are an excellent source. I’ve built quite an extensive CD collection for just the price of blanks – about $.45 per.
How about no Netflix or Amazon? We had Netflix for about 6 months and dropped it. We simply couldn’t find enough things to watch. We haven’t had cable for about 18 years either. Think of all the time and money we’ve saved.
We have a wonderful library in our town and make good use of it.
NERD ALERT!
Library? They still have those?