Netflix Raises DVD Rental Cost, Pushes Us To The Future
So Netflix introduced a streaming-only plan at $7.99 / month, while also bumping up the prices of their one and two all-you-can-rent DVD plans by a dollar a piece. If you’re renting three DVDs or more at a time, the price jumps by three dollars or more.
My knee-jerk, frugal geek reaction was negative – really bugs me when companies raise fees during a recession.
But an honest look at how I’m using Netflix right now indicates much more use of the streaming service and less DVDs. I’ve been watching old Anthony Bourdain episodes while the spouse has gotten into All Creatures Great And Small, both on Netflix Watch Instantly. My instant queue has over a hundred titles, while the the DVD queue has: eight (!). Plus nearly a hundred movies saved locally, through the DVD queue and a Handy program that I saved for later and haven’t gotten around to watching yet. I’ve also been watching a lot of older movies instead of newer releases.
So if I’m honest with myself – I could drop the DVD rentals completely, go with streaming-only, and have literally months of entertainment for the foreseeable future. But more likely, I’ll just drop down from our current two DVD plan to one, saving several dollars per month. I think a lot of current customers, once they hear about the price adjustments, will drop their DVD quota by one a month as well. And ultimately that is what Netflix wants, as they’re in a transition from DVD rentals to streaming, replacing the mail with the Internet for delivery.
The end result: I adjust my plan, save money, Netflix sends less DVDs saving them money, and I still have an excess of movies and TV shows to watch, eventually. Was there a problem here?
Note: MG Siegler says essentially the same thing, albeit more succinctly…