If this arrives in my email box, NetFlix will lose my business

Posted By on July 12, 2011

A friend of mine just forwarded an email noting an automatic change to his Netflix subscription. Not that long ago when we switched from our local Blockbuster store to NetFlix our subscription was $7.99/mo. When they changed it to adding a couple more for BluRay I decided to stick with DVDs. Now the change looks to be even bigger … I think they need some competition?

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 $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

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). 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.

Posted via email from RichC’s posterous

Comments

  • I was not spared …

    DOW JONES NEWSWIRES
    Netflix Inc. (NFLX) disclosed plans to separate its streaming and mail-order DVD subscription plans in the U.S., a move it said better reflects the cost of each plan.

    Customers who want both both unlimited streaming and to receive one DVD at a time by mail must subscribe to two plans, each for $7.99. Previously, subscribers paid $9.99 under a single plan for the same services.

    The move continues the Internet movie service’s efforts to promote higher-margin online videos as it faces off against Coinstar Inc.’s (CSTR) Redbox DVD-rental kiosks. The company has also said its members are now watching more content streamed over the Internet than on discs delivered by mail.

    Netflix began offering its first streaming-only subscription plan in the U.S. last November for $7.99, while raising prices for all plans combining streaming service and mailed DVD deliveries.

    The new pricing will start for charges on or after Sept. 1 for existing members and immediately for new subscribers.

    Shares were recently up 1.2% to $294.10. The stock has more than doubled over the past 52 weeks.

  • We’re going with the DVD option for July and August to see if we think it’s still worth it.  If not, we’re going to the Library for the classics and Red box for anything new we want to see.  They’re all on the way home from work or when we’re out doing errands etc so Netflix will likely lose our business too.

    Netflix’s contract with the major studios for streaming media is expiring soon and renegotiating them is raising their cost from millions to billions.  Unfortunately they’ve got to make up the difference somewhere.  Either they raise the price and lose a few customers, lose some studios to competitors and lose a lot of customers, or keep the same price and go under and then they won’t have any customers.

    • Interesting about the “renegotiating” with studio, etc. I’ve been rethinking and in talking with Brenda think will give up the DVD by mail and live with the streaming NetFlix. She (we) like some of the TV archived shows that we didn’t watch and being able to watch them with out commercials or having to wait for the next season is pretty nice. Brenda did the Bones series that we didn’t watch and now we are semi-into Lost. Again, we never watch it when it was a big hit … we just didn’t watch TV much when the kids we home and we were busier in the evenings.

      So NetFlix will end up losing $2/mo on me… not to smart?

Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.