Netflix’s Price Reduction is Also a Price Hike

By  |  Tuesday, July 12, 2011 at 11:28 am

Netflix is announcing some pricing changes which are kind of confusing. The upshot seems to be this: if (like me) you want streaming access but not DVDs, you’ll continue to pay a reasonable $7.99 a month. If you want the ability to rent one DVD at a time and don’t care about streaming, you’ll now also be eligible for a $7.99 plan. But if you want streaming and DVDs–which, until recently, was the only option you had–you’ll pay more than you would have in the past.

For instance, if you want streaming plus one DVD, you’ll pay $7.99+$7.99, or $15.98–up from only $9.99. Streaming plus two DVDs is now $19.98, up from $16.99.

In explaining this, Netflix’s Jessie Becker says “With this change, we will no longer offer a plan that includes both unlimited streaming and DVDs by mail. ” I’m not sure why she phrases it that way, since my lineup of plan options shows some that sure look like they offer unlimited streaming and DVDs:

The change isn’t that streaming-plus-DVD plans don’t exist anymore: it’s that they cost much more than in the past.

Netflix plans and pricing have been in flux lately–back in November, the company introduced the $7.99 streaming-only plan and increased the cost of plans that include DVDs by $1 a month. At that time, it said that it wasn’t offering a DVD-only plan because it was focusing its efforts on making streaming better, an explanation that I couldn’t quite parse. Now it says that it’s realized that people still want DVDs, and that the $7.99 plan lets them get unlimited DVDs (but no streaming) at the lowest cost to date. But it doesn’t directly explain why it’s raising other rates. It just makes oblique references to the old pricing not making “great financial sense” and the new pricing “better reflect(ing) the costs of each.” A truly clear explanation of the changes would explicitly say that many people will pay more, and explain the rationale behind the hike.

Anyhow, Netflix is a neat company that provides a neat service. And I do admire the fact that it’s letting customers debate the news on Facebook and in the comments on the blog post--where a lot of angry people are threatening to take their business to Blockbuster.

 
20 Comments


Read more: ,

20 Comments For This Post

  1. @pceasy Says:

    I just don't understand at all why they would allow comments on their company blog. Their is so much hate on there right now.

  2. Fred Says:

    They don't actually offer a streaming+DVD plan any more. They offer disc-only plans and streaming-only plans. You can then get both by subscribing to the streaming plan and one of the disc plans. The Netflix streaming offering is not acceptable by itself – there is simply too much content that is disc only, as my recent effort to get caught up on Breaking Bad will attest.

  3. John Baxter Says:

    I hadn't gotten around to cancelling the DVD part of the plan at $2. Now I will (meaning I have to "hurry" and get The MouseThat Roared quickly (not available streaming).

  4. Marcelo Vaz Says:

    The slip totally makes sense now that they are coming after international customers. I wouldn't be surprised if they were also doing that to discourage dvd rentals against streaming, because streaming is probably more profitable and the only (or better) strategy when you think about going international.

  5. CMUGEEK Says:

    just cancel netflix, sign up for hulu plus and use red box – it'll save you money in the long-run.

  6. Talum Says:

    Why wouldn't they keep the same pricing for current customers, and only apply this new change to new customers?

  7. Smith Says:

    I am very impressed to your post and appreciate to you also such a great sharing. essay | term paper | research paper

  8. lina Says:

    You post is very informative to me. I keep learning in to your post and thanks to you for sharing a wonderful post with us. Assignment | Dissertation

  9. jibran Says:

    It has been seen for a couple of years that liver disease is spreading a lot.I think the main thing is the level of fats increases inside the body which will effect the lever. العاب ماريو

  10. jibran Says:

    I can not recommend you guys enough. Full of useful resource and great layout very easy on the eyes. Please do keep up this great work. mobile blog money

  11. jasonhawk Says:

    Why wouldn't they keep the same pricing for current customers, and only apply this new change to new customers? essay | Coursework

  12. TomPeris Says:

    They don't actually offer a streaming+DVD plan any more. They offer disc-only plans and streaming-only plans. You can then get both by subscribing to the streaming plan and one of the disc plans. The Netflix streaming offering is not acceptable by itself – there is simply too much content that is disc only, as my recent effort to get caught up on Breaking Bad will attest. surety bonds from BuySurety.com

  13. Muay Thai Says:

    True, they should disable it. Muay Thai | Muay Thai Kick | Martial Arts for Children

  14. dissertation writers Says:

    It looks like pretty good here and has a many comment thank you for tagging this awesome blog..
    custom dissertation help | dissertation proposal uk | buy dissertation uk

  15. online games Says:

    They haved just brought out neflix in the Uk and I subscribed for there trial package. So far I have to say it is really great, beats going to the movies nad musch cheaper than renting from the video shop

  16. asifmirza Says:

    Amazing post I like it. The best printing and publishing
    Thanks
    A@m!r
    http://www.successone1.com/wordpress/tag/printing

  17. printingpresskarachi Says:

    They haved just brought out neflix in the Uk and I subscribed for there trial package. So far I have to say it is really great, beats going to the movies nad musch cheaper than renting from the video shop .
    Printing Press karachi

  18. printingpresskarachi Says:

    They haved just brought out neflix in the Uk and I subscribed for there trial package. So far I have to say it is really great, beats going to the movies nad musch cheaper than renting from the video shop
    Pakistan SEO Training

  19. Nature Pictures Says:

    Amazing post I like it. The best printing and publishing
    Thanks
    ”Wonderfull Nature Pictures”

  20. SBT Japan Says:

    Low cost and high quality affordable cars online can only be purchased from company , the 24/7 customer support is an added feature. All cars are caerfully insoected and graded 3-4 in auctions. The prices are not burden on pocket and cars are well maintained.