Netflix Totally Redoes Its Pricing, Jacks Up The Price If You Want DVDs And Streaming

MrsJrotax101

MrsJrotax101

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Netflix Totally Redoes Its Pricing, Jacks Up The Price If You Want DVDs And Streaming
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Netflix just announced a major change to its pricing policy in the U.S.​

You will no longer be able to get DVDs and streaming for $9.99. Instead, you'll have to pay $7.99 for streaming plus another $7.99 to get one DVD out at a time.​

If you want two DVDs at a time, it costs$11.99 per month.​

Netflix executive Andy Rendich said in the release, "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."​

In other words, it's expensive and unsustainable for us to mail as many DVDs as we do at the price that we do.​

So, we're raising the rates.​

The price change is immediate for new customers. Older customers have until September 1 to adjust accordingly.​

 
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UPDATE:
NETFLIX: We Have To Raise Our Rates, We Can't Afford Not To

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In a blog post Netflixfurther explained its decision to raise its rates and start charging users separately for both DVD and streaming plans.​
The key sentence: "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."​
Netflix also says it is creating a new division to focus solely on the DVD business.​
Here's the full blog entry:​
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.​

 
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I swear they just changed the pricing a couple months ago. I may have to cancel my plan :pat:
 
55% of pcmag users claim they're leaving netflix

PCMag asked our readers what they plan to do, and as of press time, 4,604 people have responded, with a vast majority (55 percent or 2,530 people) saying they're quitting Netflix.

The second most-popular choice is streaming-only; 27 percent (1,230 people) said they'll choose this option. Few readers are opting for the DVD rental route; just 6 percent (292 people) said they'll sign up for the one disc choice and just 4 percent (164 people) said they'll pick two discs. Eight percent of readers (388 people) said they will spring for the combination DVD rental/streaming plan.

Readers posted 52 comments on the poll, airing their grievances, expressing their thoughts on the price change, and divulging their plans for the future.
 
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