Tuesday, July 12, 2011

Netflix Plan Changes Result In 60% Increase

If you are like me, and have Netflix streaming and 1 DVD a month (unlimited)..you will be seeing a 60% increase if you'd like to continue with your current Netflix setup. I am paying $9.99 per month right now, but Netflix is separating the two businesses entirely to have a DVD division and streaming only Netflix division.

These price changes for current customers like my will take effect on September 1st, otherwise these changes are being effective immediately. Many people thought the $2 add-on to the unlimited streaming plan was a good deal, and I guess it was too good to last.

Below is an excerpt from the Netflix announcement on their blog (Entire Netflix blog post here):

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.

It looks like the management team goofed on this one, just look at these changes like a "limited time offer" that was used to get users to try out the streaming plan without fully getting rid of the DVD plan the originally had in place.

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