Interesting press release from Netflix today. Follow along as I read it for the first time.
Netflix to Offer New Unlimited DVD Plans and Will Separate Streaming and DVD Plans in the U.S.
Netflix Inc. announced today it is launching new unlimited DVD-only plans in the U.S. at their lowest price ever– only $7.99 a month for the 1 DVD out at-a-time plan and $11.99 a month for the 2 DVDs out at-a-time plan.
Wow! Where do I sign up for this fantastic bargain?
New members can sign up for these plans by going to DVD.netflix.com.
All right, just let me open a new tab in my browser. Boy, I hope Netflix hasn’t buried some bad news in the next paragraph.
Netflix also announced it is separating its unlimited streaming and unlimited DVD plans in the U.S. to better reflect the costs of each and to give members a choice: a streaming-only plan, a DVD-only plan or the option to subscribe to both.
With this change, Netflix will no longer be offering unlimited plans that include both streaming and DVDs by mail. The unlimited streaming plan will remain at $7.99 a month. The price for getting both unlimited streaming and unlimited DVDs will be $15.98 a month ($7.99 + $7.99).
For new Netflix members, the changes will be effective immediately. For existing members, the new pricing will start for charges on or after September 1.
Seriously, Netflix. That’s a 60% increase. A bit hard to swallow, don’t you think?
Thing is, I do understand the company line on this. Since they introduced streaming content, Netflix has always marketed it as a free bonus on top of their DVD mail service. According to them, they’ve decided it’s time to start charging for it. But my bank account begs to differ and calls Netflix out on its weaselly rationale. It points out that in September I’ll be paying 60% more for the same service.
I do have to wonder if it’s a coincidence that this comes so soon after Netflix released their Android app. Instant streaming is now available on any PC or Mac, and on Android, iPhone, Palm, and Windows 7 phones, as well as on PS3, Nintendo Wii, and XBox. There’s clearly a huge market for this, and I suppose I can’t blame the company for wanting to make more money off of it.
Still, though, that kind of a hike makes me look at the Netflix mailer that’s been sitting on my DVD player for three weeks and wonder if it’s worth eight bucks a month.
(By the way, if you think I’m being harsh, you should read the comments on Netflix’s blog post about the changes. Remember to wear your Kevlar.)
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