Netflix splitting DVD rental and streaming services

[Doctor Q]

Press release

Netflix is separating their DVD-rental plan from their streaming plan.

• If you use only the streaming service, it's $8/month.
• If use only DVDs by mail, it's $8/month for one at a time and $12 for 2 at a time.
• If you use both services you have to pay the total price of $16/month (one DVD), $20/month (two DVDs), $24 (three DVDs) or $30 (four DVDs).

They made it sound like good news but some customers who use both services will be paying over 50% more.

And with the combined plan you pay more for the 4th DVD than you do for 2nd or 3rd DVD - a volume un-discount, I guess.

 

[Plutonius]

Yep, if you get the streaming + 1 DVD, it's about a 60% increase. Netflix could not increase the streaming only cost because of the competition so they have passed the entire cost increase to the people who get the physical DVDs.

The streaming content is pretty mediocre and it was the DVD that made it a good deal (for the current monthly price). I'm still on cable so I'll probably end up dropping one or both (streaming / DTV).

 

[mkrishnan]

I saw this today in the news! I have to watch closely, because my Netflix account is on hold until mid-August, and when it re-initiates, I don't want to be billed $16! Especially since I don't have home internet right now, making streaming largely useless at the moment.

 

[danny_w]

I got the email from them today about the increase, err, "Important Netflix Account Info: Price Change and New Plans". Like the OP said they make it sound like good news but it amounts to a very considerable price hike. Oh well, I guess I'll be looking to discontinue my service before the increase hits. Bummer.

 

[Plutonius]

I saw this today in the news! I have to watch closely, because my Netflix account is on hold until mid-August, and when it re-initiates, I don't want to be billed $16! Especially since I don't have home internet right now, making streaming largely useless at the moment.

You can then just get the DVD only plan for $8.00 (1 out at a time) and forget streaming (or just go red box ). The price increase starts Sept 1.

 

[iJohnHenry]

Bummer.

Yes, many will think this too, but will they cancel.

First they set the hook with excellent value, and wait for people to flock aboard, then they yank the line, hard.

 

[danny_w]

Yes, many with think this too, but will they cancel.

First they set the hook with excellent value, and wait for people to flock aboard, then they yank the line, hard.

I may just drop the streaming, since they STILL do not have subtitle support after several years of saying they were working on it. My wife is Korean and subtitles are a must for her. If I am dropping streaming anyway I might look at Redbox. What kind of availability of movies do they have compared to Netflix?

 

[Doctor Q]

I think competition still applies to the streaming service but since Blockbuster and others couldn't sustain a threat to Netflix's DVD service the inherent price controls are off on rentals.

 

[iJohnHenry]

I think competition still applies to the streaming service but since Blockbuster and others couldn't sustain a threat to Netflix's DVD service the inherent price controls are off on rentals.

NetFlix is the Wal*Mart of DVDs.

First they squeeze out the little guy, then do whatever they want.

But it's good for America, right?

 

[nutmac]

I sorta understsand why Netflix is doing this, but their streaming library is nowhere near where it should be (about 10% of my DVD queue has streaming option).

The least Netflix can do is offer more flexibility, such as ability to add $8/month unlimited streaming to limited $5/month plan (2 DVD a month) or limited streaming (e.g., 10 hours at $4/month) for lighter viewers.

And offer Blu-Ray rental at no cost.

 

[Tomorrow]

This, coupled with January's price increase, is inexcusable, IMO. All told, I will be paying nearly double the rate I signed up for last fall, less than a year ago.

 

[TPadden]

I may just drop the streaming, ......

I just dropped streaming; my rate went down for 3 DVD's and we didn't stream much anyway. Guess I should thank them for the push ......

 

[dejo]

NetFlix is the Wal*Mart of DVDs.

First they squeeze out the little guy, then do whatever they want.

The little guy being who, exactly?

 

[MacDawg]

My email went like this...

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $23.99 a month membership for unlimited streaming and unlimited DVDs (including Blu-ray access) will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs (including Blu-ray), 3 out at-a-time (no streaming)
for $19.99 a month

Your price for getting both of these plans will be $27.98 a month ($7.99 + $19.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

Pretty hefty $4 increase for nothing, and I am considering dropping my 3 DVD output down

 

[dejo]

My email went like this:

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $24.99 a month membership for unlimited streaming and unlimited DVDs (including Blu-ray access) will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs (including Blu-ray), 4 out at-a-time (no streaming)
for $26.99 a month

Your price for getting both of these plans will be $34.98 a month ($7.99 + $26.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

I wish my increase was only $4. It's gonna be $9.99!

P.S. Yes, I was getting 4 out at-a-time for $24.99, cuz I was grandfathered in for being an early adopter; "Member Since March 2000".

 

[iJohnHenry]

The little guy being who, exactly?

Anyone else squeezed out.

Even Blockbuster, as big as they once were, has been defeated, by the owners of NetFlix, who have very deep pockets.

 

[dejo]

Anyone else squeezed out.

Care to cite any specific examples?

Even Blockbuster, as big as they once were, has been defeated...

I'd hardly call Blockbuster a "little guy".

...by the owners of NetFlix, who have very deep pockets.

Netflix is a public company, so the owners are the shareholders.

 

[LizKat]

You can change right now if you want to, like if it will save you money because you want to drop either DVDs or the streaming (since they are splitting the plans up that way). I did it today and it kicks in next week. I just squeaked in before my next billing cycle. I can't make use of streaming --- slow DSL--- so I have switched to just 2DVDs and save $3.24 a month off what I am paying now for 2dvds plus streaming i can't even use. They confirmed my plan change before they even sent me the notice, I had read about it in the LA Times.

 

[Doctor Q]

Both chain and independent video rental stores in my neighborhood have been disappearing one-by-one for years. I don't know if there are any left. We rented VHS tapes there once upon a time, then DVDs, but we and apparently everyone else stopped going there when Netflix took over with a more convenient service. Now we're sorry there isn't more price pressure on Netflix.

 

[LizKat]

/snip/ Now we're sorry there isn't more price pressure on Netflix.

Yes my switch was a one-time happiness, since I was paying for streaming I could not use, so happy now to pay less for the same 2DVDs. It's their next price plan change will hit the DVD-only fans in the teeth again. This one hits the streamers. We disc-only types have already forgotten that we used to pay less for THREE dvds out at a time (or so Netflix hopes).

As far as price pressure goes, if the economy doesn't get some traction pretty soon, that will represent price pressure on Netflix. As much as we want to have some entertainment on board, it seems that in the kitchen table version of budget deficits, our subscriptions to stuff like Netflix and Audible are as vulnerable as cable.

 

[iJohnHenry]

As much as we want to have some entertainment on board, it seems that in the kitchen table version of budget deficits, our subscriptions to stuff like Netflix and Audible are as vulnerable as cable.

Time to revert to board/card games at that kitchen table?

Communication with the entire family, once again.

This could be good.

 

[SandboxGeneral]

Well as a streaming only subscriber, I am unaffected and never received an email from them. I only signed up about 2 months ago when I got cable and the ATV2.

i wonder if this price increase is due to the loss of Sony titles and then a subsequent loss of subscribers, which of course could conceivably drive the cost up for the remaining customers.

I sure hope they get Sony back on board before too long. There are a lot of titles that are still unavailable to stream, but can get the DVD, and I have no interest in the disc by mail service.

 

[Doctor Q]

Time to revert to board/card games at that kitchen table?

Communication with the entire family, once again.

This could be good.

Uh oh. I don't remember what I'm supposed to do. I dumped out all the pieces but there's no power cord or USB port and I forget how to log in.

 

[iJohnHenry]

Uh oh. I don't remember what I'm supposed to do. I dumped out all the pieces but there's no power cord or USB port and I forget how to log in.

Never mind. You can still play arn's favourite board game, Monopoly.

 

[Lagmonster]

Member since 2003 and dropping my service. Not happy with the streaming selection. Will use redbox and blockbuster until the last one around here closes down.