Netflix Splits Streaming and DVD-by-Mail Services

[Greg Tito]

Netflix Splits Streaming and DVD-by-Mail Services

If you want unlimited DVDs mailed to you AND unlimited streaming from Netflix, be prepared to pay a lot more money.

Netflix was always a forward-thinking company. They called themselves Netflix when they launched their DVD by mail service in 1997 because CEO Reed Hastings always envisioned providing media over the internet. But it seems Hastings had his head a little too high in the Cloud when he started transitioning Netflix away from its DVD service. Offering both unlimited streaming and unlimited DVDs (1 disc out at a time) for only $9.99/month was not feasible for them.

Starting September 1st, Netflix will charge $7.99 a month for both services, meaning it will cost you $15.98 to continue watching movies over your Xbox while also having 1 disc being mailed to you. If you want to stick with just DVDs, you actually save some money as Netflix is lowering the price on the unlimited 1 disc ($7.99) and 2 disc plans ($11.99).

Here's the explanation from the Netflix blog [http://blog.netflix.com/2011/07/netflix-introduces-new-plans-and.html]:

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.

I've been a Netflix customer since around 2004, I think, and my experience has definitely had its ups and downs. There was a point there where I had the same three discs sitting on my TV for 9 months, but I've also loved gorging on series like 24 and Lost without shelling out for the expensive DVD collections.

Once I hooked up my Xbox 360 (and now my PS3 too) to the streaming content, the unlimited-only subscription was a way for me to get those discs off my coffee table while allowing me to watch what I wanted, whenever I wanted. So this change doesn't really affect me at all.

On the other hand, I hope that Netflix can strike more deals with content providers and get more movies and TV shows on the streaming service. Because seriously, I want to watch Eastbound and Down after watching this K-Swiss commercial. [https://www.youtube.com/watch?v=sjc5LFThDTQ]

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[MostlyHarmless]

That is stupid. They should at least give the option to receive DVDs or have all movies and shows in their Instant Queue database. $16 a month for streaming and getting DVD's they don't have instant is a ripoff.

 

[Aris Khandr]

If they actually put everything up on the streaming library, I'd be fine with this. But my DVD list isn't really getting shorter. This may be the nail in the coffin for Netflix for me, as it isn't worth ~$20 a month, and the streaming service isn't solid enough to stand on its own.

 

[Meggiepants]

Well dammit. I was sure it was going to happen eventually, but I was hoping it would be a little longer.

Oh well.

 

[Lashus]

Well, looks like I am switching over to Hulu Plus soon

 

[Icehearted]

If they don't expand their streaming library in light of this they're making a mistake. I'm tempted to try Amazon Prime since it costs less, and include other features than simply movie streaming.

 

[Bruden]

Silly business sense. Translation to customer: "We're ripping you off!"

What they should do is have two plans, one being the streaming, and the other DVDs.

No matter which plan you take you can add the other for an additional fee. Individually they're 7.99 a month or whatever they do nowadays. Together it should cost around 10-12 dollars as be fair to the customer, not a scrounger.

It's not hard people!

This did a terrible job of getting the information across. They are splitting it into 2 plans, you either pay $8 for 1 dvd at a time, or you pay $8 for streaming no dvd. If you want both instead of a $9 charge you're now looking at $16 (the price of both individual plans.)

Also their reasoning behind this is patently retarded. (we thought dvd was on the way out but it's still really popular!) yeah no duh netflix most of the good stuff is dvd only so of course everyone still wants the dvds, they're really just doing it to be greedy and don't want to admit it.

 

[Irridium]

Eh, my connection never let me stream anything anyway, so whatev's.

 

[Dr_Horrible]

This is really screwed up, I wasn't expecting this to happen until they had landed deals to make streaming available on the same day as retail disk release. There's simply not enough instant movies, and they're not going up soon enough, to really justify this.

 

[dropZero]

I've been a Netflix member for almost 4 years, and now I will be cancelling my instant streaming and just opt for the DVDs. There's simply not enough movies available for streaming and paying $16 for the exact same service that has cost me $11 for the last 4 years is just distasteful to loyal subscribers. This move is going to lose money for Netflix.

 

[Zerbye]

I was shocked when Netflix first added streaming movies at no additional cost. Now it costs something, and everything makes sense.

 

[Scde2]

This is going to double what I pay a month. -_-
The instant list isn't worth $8 in my opinion. Time to reconsider my plan.

 

[Stoic raptor]

Still cheaper and better than cable. At least for me.

I only use the streaming, and I don't even use it that much. Still, this does not seem to be a smart move.

 

[castlewise]

As an FYI: This isn't entirely a cynical cash grab on the part of Netflix (although that's got to play some role). The cost for Netflix to license content is skyrocketing. Now that studios realize streaming is hurting their bottom line in the realm of cable and purchased dvds, they are charging more to license shows to make up the lost cost. That cost get passed to Netflix and then on to you/us the customer. yay!

http://money.cnn.com/2011/07/08/technology/netflix_starz_contract/index.htm?iid=EL

 

[Shy_Guy]

This on top of cutting down on the number of streaming devices at once? Was no one else pissed at THAT sudden shitty change? I now have to upgrade or purchase a separate account just to watch something on Netflix with my family out of state. They went from I think 3 simultaneous devices to 1 on the normal 1 DVD + Unlimited Streaming plan.

What does this mean for my account anyway? Will they just switch me and charge me $16 now?

God. This Zune subscription thing had better be more than just a rumor. I'm just about done with Netflix and the sudden rip offs.

 

[00slash00]

oh my god people stop whining. sure it sucks but doing what they have been doing has gotten too expensive for netflix, so they have to raise the price. most people either use streaming or dvds anyway and for those people the only real change will be that you pay less for netflix each month

 

[gphjr14]

I'll probably just stick with unlimited streaming once the change takes place it takes them forever to get new DVDs (just now have True Grit) and it takes forever for them to ship dvds and I have a distribution center in my city. So once the effect takes place I'll just stick to streaming and if I really wanna see it I'll just go red box or other means.

 

[Shy_Guy]

oh my god people stop whining. sure it sucks but doing what they have been doing has gotten too expensive for netflix, so they have to raise the price. most people either use streaming or dvds anyway and for those people the only real change will be that you pay less for netflix each month

Are you joking? I certainly can't rely solely on the streaming. More than half of what I want to watch is DVD only.

The amount of streaming devices has been lowered from 3 to 1, and now I have to pay MORE money for this lesser service?

Customers have a right to complain. Get over it.