Netflix Testing Lower Prices on 2 Plans

Update: The AP just published a story that states Netflix is testing lower prices with select customers, and this is NOT a "full or official price cut."

"Netflix is always testing prices. Some members, a small fraction of our total 6.7 million members, have been notified of a lower price on some of their plans. It is not across the board and it was not announced by the company. It is simply a price test," a company spokesman told The Associated Press.

Forbes confirmed that Netflix has again incorrectly posted a story that Netflix lowered prices on the 3-out and 2-out plans (now $15.99 and $12.99).

*******************************************************

NETFLIX - Your price is lower!

*******************************************************

Dear ________,

We're lowering the price of your 3 DVDs out at-a-time plan again! This time we're lowering it by $1.00 to only $15.99 per month plus applicable taxes. Now you can enjoy Netflix for even less!

Again, you don't need to do a thing. Your membership will automatically move to the lower price and be reflected in your Membership Terms and Details. The lower price will take effect beginning with your statement on or after Thursday, August 16, 2007.

Membership Terms and Details: http://www.netflix.com/Terms?nfso=61898612&.

Enjoy!
Your friends at Netflix

-------------------------

I just got a letter in the mail for the first price decrease, and now they've again lowered prices to stop customers from defecting to Blockbuster Online.

Thanks to Eric, Seth and Paul for sending this in.

Comments

[Edward R Murrow]

I love capitalism and competition, even if it's only between two competitors.

[frank]

Yes, I got this last night. I had signed up only a day ago and I am still on the 2 week trial.

It made big news on how much it was going to cost them after they lowered it to $16.99. Now a dollar less?

I would rather a chance to pay a buck or two more for a no throttle plan. Since that will have the most impact on how long I stay, not $1.

[rjm]

Im guessing these prices are offered to LOW VOLUME users.

I didnt get the letter or email.

[noe638]

Are you sure Forbes got the story wrong or did they run a previous version of an ap feed and then the Associated Press updated the story?

[noe638]

The same article as the Forbes article exists at the following website:

http://www.azcentral.com/business/consumer/articles/0816biz-netflix17-ON.html

So it looks like AP got it wrong, not Forbes.

[Kymberlie R. McGuire]

I got this myself, so it was a pleasant surprise to my in my inbox.

My movie watching had slacked off for a while but it's picking back up again, so I guess I'm probably not using the service as much as some.

[xoxo]

Some of you are probably the dumbest people I have heard. I have been a member for a while now, a few years, and I am not sure where this throttling idea came about. You guys are just simply ridiculous...and if you are going to complain because somebody actually cuts their prices so that YOU can use a service, then you really don't need that service to begin with. It's also sad to see that most of you don't have lives and can only sit in front of your door and wait for your freaking movies. How about you get out of your house, and get a little bit of sun instead of just wait for your movies and count the seconds as to how late your movie was today. You maybe don't realize, and I am sorry to break this to you, but throttling is not the answer to every issue.

[lynn117]

i received this email for my unlimited 3 out plan. i rent around 16 movies a month so i am not very low volume. i do complain frequently that i cant use watch it now because i have a mac so the extra savings make me a tad happier.

[bryanback]

IloveNetlflix, I'm pretty sure this "throttling idea" came about from netflix THROTTLING USERS. http://en.wikipedia.org/wiki/Netflix#.22Throttling.22_and_the_Chavez_lawsuit
There's a big difference in sitting at home waiting for a movie, and waiting an average of two days for a movie or waiting an average of six days for a movie.

[dizzney]

iloveNetflix must work for Netflix.

[MCW]

Hey IloveNetflix, I don't think you realize how stupid you sound. YOU'RE actually the dumb one in this situation. No one was even talking about throttling... you started it.

Wish you had a profile page so I could fwd: spam your way.

[hrsd]

IloveNetflix probably is probably the one who needs to go outdoors and get some sun to get his brain working. Like MCWHAMMER posted, you are the one who started this throttling issue. For some reason he seems to me an employee of Netflix.

[frank]

In his defense, I did mention it first and maybe I shouldn't have. It was just an aside. My main post was on topic. I don't like it when someone with an ax to grind goes off on an unrelated rant, I guess I did do it here.

But it is a concern of many people still and if they want to deal with Blockbuster correctly, make it so the in store exchange isn't so important because we know when we are getting our disks and can plan accordingly. So I am not stuck on the weekend without any movies. And if there is a limit let me know, charge me if I go over or let me control how my allotment comes in.

It will also keep the churn rate down, I won't have to switch back and forth to get anything or the newer releases. That way I am profitable and happy. Maybe they should test market that!

[rjm]

I hear you frank !!

By the way...IloveNetflix has issues !

[flanakin]

These guys are friggin' morons. Netflix needs to learn how to reward it's customers who use their larger plans. If you're going to lower some prices, do it for those of us who have more out at a time than 2 or 3. This is just stupid. Don't get me wrong, I like the idea of potentially lowering prices, but Netflix has never been good at enticing people to upgrade. All you get out of it is the extra disc. Most companies try to sell you on it by showing how you'd save money. Grumble, grumble...