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RJM

Its not going to happen. They want to get away from postage costs even if it means delaying new releases another month or two months or even 3 months.

Postage both ways at business reply rates makes many users (Like me) unprofitable.

Whereas, they couldnt care less if I watched 100 hours of streaming content per month. Their cost doesnt increase.


The model is clearly moving away from in demand new releases by mail simply because its more profitable for them to shove old content down out throat...even with a lower gross revenues.

9 of the top 10 DVDs in my q have long to very long waits. if I dont get something on the MONDAY of the week it comes out, Im waiting several weeks for it.

Netflix isnt about giving the customer what he wants. Its about giving him what he will accept without cancelling while maximizing their profit.

twitter.com/Tom

I'd like to see a way for them to notice that I'm returning 2 dvds in the same mailer for them to save on return postage. If more did that, they'd save a ton of money and we'd reap the benefits. Hopefully.

Nalez

The way I see it, the streaming on my 3-out costs $7.99 (the cost of a streaming-only account). I would gladly pay $12.00 for a 3-out with no streaming account

Crow550

DVD only? No.

They really shouldn't offer streaming only if it means raised disc prices. Stupid people bitching about Canada getting streaming only. :P

Donutdon

Should they offer a disc-only plan? Yes.
Would I subscribe to a disc-only plan if it were offered? Yes.
Will it happen? No.
Will I still be a Netflix customer after they go streaming-only in the US? No.

Jon

Blu ray only plan please ..

jane

@Tom- I believe that Netflix has said that they pay round trip postage when they mail the movies out. So you putting two in an envelope won't save any money that way.

And I too believe that there won't be a DVD only option anytime soon. There focus is obviously streaming now, and I believe it may take a few more years, but it will catch on and it be great eventually. Instant satisfaction has always been the American Dream.

Dan

The all-you-can-eat subscription model is such that the price has subsidies built in. Heavy users are subsidized by light users. DVD-only users are subsidized by streaming-only users. The entire ramp up of the streaming service was subsidized by the DVD by mail service.

If Netflix were to split tomorrow into two companies, one with only the DVD by mail service and the other with only streaming, it would benefit no one. The DVD by mail service would remain at the current cost and prices would rise similarly, if not more rapidly. They would lose the lower-cost streaming users who pay similar rates, BD acquisitions would remain high cost, and postal rates will continue to rise. Similarly, the streaming side would be hurt. The subscriber base may or may not take a hit. There would be no more fallback on DVDs while the streaming library grows. Much of the company's current leverage would be diminished, which would drive up content acquisition costs as well.

Seth

I think you can't use the word "avail" twice in 3 paragraphs.

Jason

With the ease of access to netflix ready device and a plethora to choose from it makes no sense for anyone to go disc only. With a rapidly expanding selection available to stream in a relatively short time everything will be available for instant watch. At that point there will be no reason to even have discs and customers getting discs. Ultimately when all of the selections or nearly all are available from instant watch most if not all netflix customers will have stopped getting discs.

Right now it still makes sense to offer plans with both since most customers don't have everything they want to see available on instant watch. I have enough titles I want to see that are not on instant watch to over flow my disc queue. As time goes on this doesn't change even as some of them are added to instant watch. This is because their selection is so huge compared to the amount available on instant watch; how long it takes to watch even at my rapid pace; and is compounded by instant watch titles in the wrong aspect ratio.

There should be provision for both like how DVD/bluray players have a setting to show a widescreen title in full screen eliminating the need for making two versions. That way the few crazy people who insist on watching butchered titles can do so without ruining it for everyone else. But anyways that would be the only thing keeping me from going instant watch only. In the probably 800 or more discs I have gotten over the last about 3 years only maybe 5 they did not have the proper aspect ratio, that is full screen only discs for a widescreen title. But those are the fault of who sends them to netflix as the info paged indicated widescreen.

CJ

Being a Cost of Service guy in my career as a pricing person, I believe streaming and DVD rental should be separate services with separate subscription rates. This current mishmash obviously has pricing subsidies between the two services.

byteme

I'm all for customer choice, but personally, I would continue to get both.

Sometimes I'm just in the mood to watch something, but don't know what. That's when I hit the streaming options and see what is out there. If I have a particular genre in mind (comedy, drama, action, TV show, etc.), I can search through available titles and always find something great to watch. If all else fails I can usually revisit an old favorite.

Other times, when I want to see a specific title, I find that 9 times out of 10 it is unavailable for streaming. That's when it gets added to my disc queue and I watch it on disc.

For me, both services compliment each other well. I have found that streaming has allowed me to watch quite a few titles that I would not have added to my disc queue. Some were really enjoyable...others were not good and I could stop watching them and find something else without feeling like I'd just wasted a disc slot.

granite26

I think that they NEED to maintain the zero marginal cost of trying streaming. It's a first taste of crack situation. People will sign up for the dvds but dip their toes in streaming. Then, when they've tried it, the value of the tv connected devices sells itself.

I'd bet netflix sees dvds as a gateway drug for getting customers onto it's future core business model.

dAVe

For me, DVDbyMail is a must have and what I signed up for back in 2003. NetFlix Streaming Video was, is, and will only ever be a "nice to have" option. Personally, I think throwing big money at time-constrained digital licensed content is a mistake. Some money, yes, if only to keep the streaming catalog fat enough for the "nice to have" option. The farther NetFlix moves to being a primarily Streaming Video company, the more likely my time as one of their 17+M subscribers will come to an end. And certainly, a DVD-Only Plan might change that for me but NetFlix will also have to invest more money into the physical disc inventories. Sadly, I don't think that is the case even now.

Fred

For those of us who can not get broadband (as much as we would like) I would appreciate it if I did not have to subsidize those who do.

Show me the discs!

Netflix will not offer a DVD only plan because they are quickly phasing out discs. How could they offer a disc only plan when they are buying fewer and fewer titles and those they do get they buy fewer copies. Within a very short period of time, Netflix disc-by-mail service will be a shadow of its former self. Who would pay for that?

They need the combo of streaming and disc to give their disc customers enough perceived value to stick around until they can be converted to full-on streaming customers.

Of course, at the rate they are accelerating with their drop-discs-and-convert-to-streaming business model, they will be lucky to hold onto enough disc customers.

Racket

Nope, I use both parts of Netflix and want anyone who is not using both parts of Netflix to subsidize me...oh and thanks.

HAT

I subscribe to the local newspaper and several magazines....Can I get a price cut if I don't read the Lifestyle section? The Op/Ed section? or the Want Ads?
What if I skip articles in magazines?

I demand a read only the parts I want to read price reduction for all my subscriptions, now! :)

Socinus

In regards to which side is supporting which side the evidence provided and admitted by Netflix and their reps is pretty succinct. There will never be a dvd only plan, there is absolutely no business benefit to it.

First, compare costs. For the basic plan that Netflix encourages, the $9.99 one disc plan, the majority of a heavy users fee is consumed by postage rates alone (about $.83 per mailing). Were you to watch 6-8 movies per month (assuming a rapid watching window) that would account for $5-7 of your subscription on mailing alone. Next apply a standard overhead cost on shipping staff and customer service, additionally factoring in content acquisition costs. Effectively Netflix breaks even as it is on a moderate mailing user. This is before factoring in streaming usage and content acquisition. Mail only would only serve to cripple the business and increase costs.

Users who stream are likely to not utilize the mail as heavily (I myself have discs lying around for a week at a time while I power through tv series on my Roku). Cost per viewing of a WI title is somewhere around $.03-.05 and I as a consumer end up watching a larger volume of content. Lower cost for the business and more content viewed by the consumer is win-win in my book. In effect the lower cost of servicing accounts like mine subsidize all those customers who can only do by mail because of no broadband/being a luddite.

My feeling is the number of people signing up for the streaming only plan (which I anticipate will be a large amount to be announced at the next quarterly) will be covering a large amount of the content acquisition costs that people are concerned will drive up all plans. For the $7.99 streaming only plan I imagine that the majority of the cost before profit is dedicated to acquisition, along with a higher amount of customer service costs (think troubleshooting). So I think anti-streaming individuals (such as the BB-4-eva posters) may be completely wrong in their crusade to lift the yoke of streaming oppression from mailing accounts.

But, then again, I guess I can understand being afraid of change.

Dave

I very much doubt this is going to happen. I heard a story over the weekend, I believe on NPR radio, in which a Netflix exec is quoted as saying that it would have physical DVDs for "several" years, the obvious conclusion being that the company intends to phase them out at some point in the not distant future.

me.yahoo.com/a/cVJeynEk2ftpwfSNiVuEeFvWQ0CwxXnwFA--

I’m no media maven, but looking on from the sidelines, As NF moves more and more to pure streaming, I can see the great benefit to Redbox, or even Blockbuster, as they scoop up the DVD-only crowd. My $.02

'in the wind

I'd go for the DVD only ... UNLESS they can increase the streaming buffer so my 1.7Mbp DSL could soak up a movie at DVD/HD quality.

frank22

Fred, you are ignoring all evidence that streaming is actually much more likely to be subsidizing you. Dan spelled it out very well before your post.

The all you can eat model seems to get a paranoia going that makes everyone thinking they are getting screwed. However, where can you get a better value in streaming or DVD by mail(BB for some people, but not for many when you consider DVD's actually received).

I dropped the DVDs because the higher costs based on my current usage isn't worth it at this time. It turned a great value into a good value. I will add DVD's for periods when I get a build up of things I want to watch that is only available that way. I didn't do this before because I was grandfathered in, and I figured I would always get to get at least some value. I lost the lower cost grandfather, and the higher cost just means I will think about my options more.

JohnO

Blockbuster Online is a great value for those not interested in streaming. Blu-ray and DVD by mail for the same price.

John

I'd do a DVD-only plan. I used to stream a reasonable amount, but can't do it at all now because I don't have an Internet connection that can support it (It could if they'd let me buffer more of the movie than they currently allow, but that's another story...). So, right now, the streaming part of my membership is worthless to me.

There are still a lot of people with connections that can't support streaming movies, whether due to being in area with no brandband service, being in an area with poor broadband service (Some of these DSL/3G plans are technically broadband, but can't handle Netflix streaming), not being able to afford a fast Internet connection, having had some sort of a customer service issue that makes them not want to patronize a monopoly broadband provider in their area, or some combination of those factors.

DVD is a closer to universally solution. If you have electricity, can afford to make a one-time purchase of a $20-$30 DVD player at Wal-Mart, and can find even an old SD-only TV on craiglist or something, you can watch DVDs. Basically, that's 95% or more of people and most of the other 5% are probably homeless (Which isn't knocking them -- I think it's a tragedy that we don't provide better housing solutions for the homeless, but that's getting off topic). Having an Internet connection that can handle Netflix streaming without going into rebuffering loops is a smaller group -- maybe 60%? I don't know the number, but it's certainly not everyone.

If Netflix is serious about pushing this streaming stuff, it'd be nice to see them make an effort to get it working better on slower Internet connections. Simply having an option to allow a longer buffering period would help a great deal. If they'd let me buffer 1/4-1/2 of the movie at a time, I'd happily take their lowest resolution. So, if it's bandwidth they're worried about, just have a hidden option you can access with a shortcut key that locks you to their lowest resolution in exchange for letting you buffer more of the movie -- then everyone wins.

frank22

JohnO, BB is better if you want to save a few bucks, and watching some BRs is your only priority. Everyone seems to say they get slower turn around, and so the cost per DVD will average out much higher. My experience agrees.

John, your DVD only plan would cost more because you would not have streamers in your pool, lowering the average cost. I have DSL, and have had few problems with streaming, but a longer buffer time seems like a great idea for those that don't. I wonder why it isn't done? This would make streaming available to more people and that seems to be job one for Netflix.

Although I have been defending Netflix, I am not happy about the drop in the level of DVD service I am reading about here. They should keep the level up to where it has in the past because this is the only way we can see many of the movies that are out there. Streaming is still just a complimentary service and will be for some time. I do think they are pushing us away to quickly. This is based on what I read here, because up to a month ago I had DVD service and was happy with it.

Fardog

DVD plan would be nice since I can't get Closed Captioning on my xBox 360.

R.

This is for twitter.com/Tom: Bulk rate postage is paid at the time the envelopes are printed/purchased. You are not saving Netflix anything by returning 2 DVD's in one mailer. I was doing that and was having issues with DVD's being returned to Netflix. I was advised by a very very nice representative at customer service to only return 1 DVD in one mailer unless the second mailer is missing or damaged. There is absolutely. no savings for them

Bernie Kepke

As a custom audio/video professional (I both design and install systems.), I can easily see the superior picture quality of the disc (DVD or Blu-Ray) to the stream of supposed equal quality. I have no interest in streaming and don't feel it is fair that I have to pay for its cost when I never use it. I too prefer a disc-only plan at a lower price.

UW Smith

As soon as Netflix increased the price on my 3 disk a month plan back in December, 2010 I immediately cancelled becoming one of the approx. 10% that have done so since the increase.

I can stream with no problem but am old-fashioned and want the physical disk. Perhaps Netflix is headed down the same path as Blockbuster. I sure won't do business with them again. There are other options to obtaining the physical disk, ie Redbox!!

Dominic

They essentially have a DVD only plan. Look under the limited plans, you get 1 dvd a month for $4.99 but without stars play, device streaming, and you are allowed 2 hours of online viewing a month.

Robert Kroning

I don't want streaming, I want to continue to receive my movies by mail, and give me the option of watching when I want to, and on my TV.

Why can't people be offered the service they want, and pay the sufficient reasonable price for it, and not have to bundle with something else?

Yes, why can't I buy only the sections of the Sunday newspaper that I want??

Incidentally, I want to chide Netflix for accepting my request for a film that is not available, and not making it clear that that's the case. But I can't find out how to contact NF by email.

GeoBernd

For now I would like DVD only.
That is until Netflix truly streams Bluray uncompressed... I am watching most movies on a 135" screen and the Netflix HD stream looks like web video compared to a Bluray disk... I am all for saving postage and not shipping discs around but only if the quality is 100% the same.. (and yes - I am one of the lucky people that has no problems receiving a 35+ mbps stream). Now the question would be what the uncompressed streaming cost vs. disk shipping cost would be...

April

I HAD a DVD only plan until the Bastards took it away. I want it back.

You people are all so STUPID. You think that if we just get a taste of streaming, we'll give up our DVDs? Are you really that DUMB?

Do you morons really think that the entire country has high-speed internet? Not everybody lives in a fucking city. There are people around here who've still got DIAL-UP for God's sake because the only high-speed option (save satellite internet) around here doesn't reach them. Even when it does it's prohibitively expensive.

So why the hell would we want to pay for something we can't use?

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