On the Netflix blog Jessie Becker announced several important changes for subscribers and new customers:
- Official announcement of the DVD-only plans: $7.99 for one-out and $11.99 for 2-out, unlimited (dvd.netflix.com).
- The DVD & streaming unlimited plans are now separated into two $7.99 plans, or $15.98 for both (replacing the $9.99 combined plan).
- The price changes are immediate for new customers, and for existing customers the new pricing will start on September 1st.
The reason behind the changes:
Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didn’t anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering.
Netflix recently announced a new focus on the DVD side of the business, and they've formed a new business unit around DVD:
Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail, led by Andy Rendich, our Chief Service and Operations Officer and an 11 year veteran of Netflix.
You can view your current plan or select a new one at on the Your Account page on the Netflix website.
What do you think of the new pricing and plans?
"Am I the only one that see's the positive here?"
Yeah, most likely. Most people don't like getting screwed in the pooper. Particularly during a time when most people are struggling to just stay afloat, they don't want to put up with yet another billion dollar greedy business gouging their wallets for even more money.
In these days of "tough economic times" Netflix has thrived while other companies have fallen due to it being seen as an affordable luxury. With these price increases coming down every 3 or 4 months they're pricing themselves out of that affordable luxury and placing themselves right smack in the middle of "luxury I can live without" land. In a day and age where people are more concerned about affording food to eat and gas to drive to work, nobody wants to hear about Netflix's woes that they pay soooooooo much for streaming rights.
Posted by: Lethargicj | July 12, 2011 at 03:12 PM
@Lethargicj - you'll have to explain to me how anyone's getting screwed. You never have to pay the new prices, just cancel before Sept. 1. Netflix has no obligation to continue to provide you any service at all, much less at a price you determine.
Posted by: kh99 | July 12, 2011 at 03:18 PM
This is fairly consistent with Netflix's approach which is generally to be as aggressive as possible towards customer wishes as long as the company feels they have no choice in the matter.
Posted by: SPLG | July 12, 2011 at 03:18 PM
My plan nearly doubled in cost.
Netflix, you can no longer compete with free. I already use torrents for the stuff you don't have, now I will use torrents for everything.
Don't let the door hit ya!
Posted by: - | July 12, 2011 at 03:18 PM
I got the email from Netflix (new logo should be $) and called in to complain knowing it was a waste of time.
Anyhow, I am on unlimited streaming and 1 dvd unlimited plan price 9.99 a month. New plan is splitting these into two as people have talked about to 15.99 a month.
I called support the lady tells me oh its cheaper now only 7.99 a month. I explained no it is not look at my plan.She had me hold twice then I talked to a manager who offered nothing. I miss the old netflix before it Jumped the Shark.This show might be canceled.
Posted by: Bobby Murray | July 12, 2011 at 03:24 PM
"Yeah, most likely. Most people don't like getting screwed in the pooper. Particularly during a time when most people are struggling to just stay afloat, they don't want to put up with yet another billion dollar greedy business gouging their wallets for even more money."
How are you getting screwed? If you enjoy streaming, then you can save money and just get streaming for $8 a month. If you would rather get your content on DVD's, then you can get THOSE for $8 a month, or $16 for 3 at a time, the cheapest these plans have EVER been offered. And if you want both, then you get a library of content that is greater than ANYTHING out there for less than the price of 3 blockbuster rentals or 15 nights of redbox. Name me ONE service that even comes CLOSE. Cable give you some of that for 4 times the cost (to start). Redbox gives you new releases, if you can get them, for $1 a night. Amazon gives you about half the streaming content for about a dollar less per month.
"In these days of "tough economic times" Netflix has thrived while other companies have fallen due to it being seen as an affordable luxury. With these price increases coming down every 3 or 4 months they're pricing themselves out of that affordable luxury and placing themselves right smack in the middle of "luxury I can live without" land. In a day and age where people are more concerned about affording food to eat and gas to drive to work, nobody wants to hear about Netflix's woes that they pay soooooooo much for streaming rights."
First off, maybe you don't remember paying $4 PER NIGHT for Blockbuster movies (again, assuming you could even FIND them). Yes, times are tough, and if your budget is tough, then Netflix is giving you the option to go back to the oldschool plans for the LOWEST price they have ever offered. If you want to blame anyone for higher streaming prices, look at the studios. They have increased payments to the studios by 20 TIMES what they originally paid when they offered the service FOR FREE. And those fees are only going to continue to rise.
Posted by: mnxmfan | July 12, 2011 at 03:29 PM
Going with 3 at a time with blu-ray. this is the best thing that could happen for me because I was paying more and i can't stand streaming now i can get want i want!
Posted by: Jv3030 | July 12, 2011 at 03:30 PM
Not that I expect this will have any impact on Netflix thinking/actions, I just placed my Netflix account on "Hold" until October 10th. I'll be returning by my one DVD I have from them tonight in the mail.
What I am considering during this "trail separation" isn't whether I like or dislike Streaming. Netflix Watch Instantly has little impact with me. It was always an "added benefit" to my membership up until now. But now Netflix is presenting it via Plans/Pricing as if it does have some great pull, power or value. Sadly, for me, it does not have any of that. What I am considering is whether or not Netflix DVD/BD business is real or just talk. Netflix, for the first time, is now two-faced about physical media's future and I doubt their "efforts" about supporting DVDbyMail business model. They have until October 10th to convince me that they are serious about DVD/BD.
Posted by: Henchman-24 | July 12, 2011 at 03:36 PM
Will drop to the 2 Blu-ray at a time option. I've never really been impressed with their streaming quality or title selection... so I'm not going to pay even more for it.
Posted by: Craig Cunningham | July 12, 2011 at 03:36 PM
Someone made the great point- this 60% increase for combo plan hurts the people who watch of their stuff streaming more than the others. You're not going to pay 60% more for the luxury of 1-3 dvds per month.
The large turn over people who get 10+ discs a month will be much more likely to shell out the 60% increase...BUT, the quick turn over people are the ones who are unprofitable for Netflix.
Doesn't make sense.
Posted by: www.facebook.com/profile.php?id=661000669 | July 12, 2011 at 03:47 PM
It's revisionist history to say that DVDs were a $2 add-on to streaming. For most of their members it was streaming that was a free add-on and then a $2 add-on to their existing DVD plan. Now it's going to be an $8 add-on, but you can opt-out of it, so I and probably a lot of other people are going to do that. I just don't get enough out of their streaming product to justify an $8 price point.
Posted by: Pollardito | July 12, 2011 at 03:47 PM
Its estimated that Netflix's streaming costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.
Source:
http://money.cnn.com/2011/07/08/technology/netflix_starz_contract/index.htm?hpt=hp_t2
No wonder the price is going up.
Posted by: Johnny Utah | July 12, 2011 at 03:49 PM
Because their streaming selection is limited, I want to keep both streaming + a DVD. However, I will no longer hang on to a DVD for several days. I will have to screw Netflix as hard as they are screwing me, meaning I will watch and return the DVD promptly in an effort to get several DVDs each month. That is the only way to justify such a massive jump in prices.
Posted by: William | July 12, 2011 at 03:53 PM
#www.facebook..etc - It makes sense to me. Streaming has been free or really cheap up until now. Now the costs are spikeing and so is the price. Yeah, they *said* streaming was $7.99 before and it looks like DVD plans are going up, but do you really think 1-out was only costing them $2/month? They were just getting you used to the idea of paying for streaming. Now you really *are* paying for it. As someone else pointed out, the DVD-only plans are actually cheaper. They are probably expecting that many people will decide that the DVDs aren't worth it.
My guess is that in spite of all the complaining and saying that Netflix doesn't know what they're doing, they actually knew how things would play out years ago.
Posted by: kh99 | July 12, 2011 at 03:56 PM
I noticed they have the $4.99 DVD plan that allows two rentals per month and limited streaming, but you can't combine it with the $7.99 unlimited streaming plan.
That's kind of unfair. What if I only want two DVDs a month, but want unlimited streaming? I'm stuck paying $16 instead of $13 just because they didn't include a tier for that?
I'm dropping DVDs, then. Screw this. I'll buy used DVDs from the local used media dealer or various online sources.
This was an awful move, Netflix. You're making me seriously consider Amazon.
Posted by: Raven A. Wind | July 12, 2011 at 03:57 PM
Johnny Utah, that is mind boggling and really helps to explain some things.
Did Netflix really so underestimate the way streaming would change their business model in 2 years? Amazing.
Posted by: - | July 12, 2011 at 03:57 PM
$6 price increase is just plain greedy! I guess its time to try out Redbox
Posted by: Safwat Ismail | July 12, 2011 at 04:08 PM
Referring to DVD only plans: "... the cheapest these plans have EVER been offered."
My current cost is $19.99 for 4 DVDs + streaming. They plan to raise that to $29.98 for 4 DVDs + streaming. If I opt to not take streaming, they are raising 4 DVDs to $21.99. So, for me this is a $2 hike. I've been a Netflix customer since before they had subscription plans -- used to pay per rental. They always treated me well by grandfathering my plan in a bit cheaper. Looks like that is over now.
As for the "cheapest ever" I just checked my Quicken. My "cheapest ever" on record was 9/2007 - 12/2007 for $18.01/mo for 4 DVDs. I've had that "plan" since the first day they started doing subscriptions, when it was the only choice I believe.
Posted by: me.yahoo.com/a/r1bncWMvlOBBhzmAbhMQ29hfdk1Bkeq2YqA- | July 12, 2011 at 04:12 PM
I will be canceling my Netflix subscription when this price increase takes place. Ridiculous to give your loyal customers a price increase of 60%. I've been a Netflix subscriber for 4 years.
Posted by: eamgrrl | July 12, 2011 at 04:15 PM
For those interested in checking out the DVD/Blu-Ray by mail competition, realize that the Blockbuster By Mail service is still running just fine.
My 30-day free trial with Netflix just ended last week. I was expecting to drop Blockbuster after I watched one last Blu-ray disk sitting in my living room. Now I'm not so sure.
Their prices are a little higher than Netflix, but Blu-ray is included. After 30 days with Netflix, I find the BB web site and Q management much better than the Netflix equivalent.
Blockbuster Netflix (with BD)
--------- -------------
1 out: 11.99 9.99
2 out: 16.99 13.99
3 out: 19.99 17.99
https://www.blockbuster.com/signup/m/plan/
I do enjoy the streaming though, and Netflix is still the big man on campus in that area, with (I believe) the largest selection, and the largest selection of devices on which you can stream through to a TV.
Posted by: JohnnyO | July 12, 2011 at 04:15 PM
I mostly subscribed to Netflix so I could rent BluRays, but now that they stopped getting a lot of new releases, I rarely use their services anymore. I was thinking about cancelling my account, and this made it even easier. Account cancelled.
Posted by: Buñuel | July 12, 2011 at 04:18 PM
I love the Sturm und Drang of these Internet bitchfests. It amazes me how people can personalize their relationship with a corporation to the point where they feel betrayed by it.
This is all you need to know, as Johnny Utah pointed out: "Its estimated that Netflix's streaming costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012."
One of their expenses is going up 1000%, so why is so hard to understand why prices have to rise?
Posted by: Daniel Trogdon | July 12, 2011 at 04:35 PM
One of their crucial expenses, I should have said.
Posted by: Daniel Trogdon | July 12, 2011 at 04:36 PM
Am I happy about paying more? No... who would be?
But, Netflix is still, hands down, the best entertainment deal out there. $16 a month for a couple DVDs and access to the complete streaming library?
Anyone whose complaining hasn't taken a look at their cable bill in a while.
Plus, with all the streaming deals they've been signing, the content will only get better.
Posted by: Andy Gradel | July 12, 2011 at 04:52 PM
What streaming deals the content is getting worse and worse? they have added a grand total of 4,000 streaming titles a year the past couple years. Of those 4,000 titles there are about 3 worth watching.
Posted by: Johnson1965Tony | July 12, 2011 at 05:13 PM
Does anyone know how the new plans affect the number of simultaneous movie streams? Right now, I'm on the unlimited 1-dvd plan, so I can stream two movies at once (my roommate and I don't share a lot of the same movie tastes, so we'll watch movies separately on our computers). But I'm curious if this new plan will restrict us to 1 movie stream at a time.
Posted by: Cindy | July 12, 2011 at 05:23 PM
When will the increases stop? SD streaming is horrid and not worth an increase. At least they made my decision easy. I just cancelled. Amazon prime, BB online and Redbox it is. I'm not saying that these companies are great, not by any stretch of the imagination. There was a time when NF was cheaper than one movie channel on cable, 3 at a time plan. Now I can get two movies channels for the new cost of NF. You broke my heart NF. We should have known that they would eventually turn into the cable companies - just keep raising the prices. Steve Swasey molests collies.
Posted by: Curry | July 12, 2011 at 05:41 PM
@Cindy: I read on here once that you will always have two streams available w/ NF even if you only subscribe to one DVD or none (it's true; I've tested it). Something about latent streams and other techie talk I don't understand.
As for taking a corporate decision personally that's not the right way to phrase it. Everyone has to weigh dollars spent vs. value received and decide if it's worth it. NF does offer cheap entertainment when compared to cable, theaters or PPV true enough. However taken on it's own, 1 disc plus streaming for $18/mo is not a good bargain in my opinion. Everyone just has to make up their own mind what the service is worth. My fees are going to go up $6/mo. If they really beef up their streaming content then it might be worth it, but they're not indicating that yet. I'm stepping down to streaming only and then reevaluate in 6 mos or so.
Posted by: Tbob1.wordpress.com | July 12, 2011 at 05:51 PM
I've long thought that Netflix was such an incredible deal that it'd still be a bargain if they doubled the price. Compare it to cable, or to what Blockbuster used to charge, and you'll see what I mean. Even comparing to Redbox, if you took out four DVD's in a month and kept each an average of two days, you'd match Netflix' DVD-only price.
Most of what we watch on Netflix is streaming, and it comes to quite a lot. For discs, we can get them from our local public library for nothing (provided we bring them back in time). I'm guessing we'll drop the DVD option; if we do, this comes to a price decrease.
Posted by: James Heartney | July 12, 2011 at 05:54 PM
$.52 a day. NOT WORTH IT!!!!!!!
Posted by: Johnson1965Tony | July 12, 2011 at 06:01 PM
Just got the email and my streaming + 2 DVD out plan is now 19.98. It's not going to kill me but we're not heavy turnaround viewers. Guess we'll downgrade to one DVD out + streaming.
Posted by: Teresa Duncan | July 12, 2011 at 06:09 PM
I used to have two 3 out plans. Then I made one of them BD. Then IW came along. I bought a Netflix ready device so I could watch the IW on a real TV. Then they stopped supplying me with discs in a timely fashion. And publicly stated they were going streaming only before 2020. I dropped one of my plans. Now at 3 out with BD and IW. Since the beginning of this year by Sep 1st that price will have gone up 33%.
Sorry, but IW is mostly grade Z movies and bad TV - I won't pay for it.
I will probably go to a 3 out DVD-BD only plan, and like others here have said: let's test NF and see if they are serious about being a quality disc by mail service again. If not, this 11 year customer is history.
Posted by: eviltimes | July 12, 2011 at 06:23 PM
Wow, another price increase. We are going to move down in our plan to streaming only and use Redbox. Currently we have 3 DVDs+Streaming. So for us, they will be losing $12/month. There is no way we will rent $12 in Redbox movies per month.
Posted by: The | July 12, 2011 at 06:38 PM
Not that I don't sympathize with people on smaller plans, but just confirming...am I right in seeing that the 5-out plans and above are actually going ~down~ for Streaming + DVD's? Correct me if I'm wrong here:
Unlimited Streaming + 6 DVDs out at-a-time: $40.98 a month (Down from $41.99)
Unlimited Streaming + 7 DVDs out at-a-time: $45.98 a month (Down from $48.99)
Unlimited Streaming + 8 DVDs out at-a-time: $51.98 a month (Up from$55.99)
Posted by: Jthomas411mania | July 12, 2011 at 06:42 PM
@Johnson1965Tony - wrong again, it's totally worth it. When will you stop being wrong?
Posted by: kh99 | July 12, 2011 at 06:44 PM
Reading the well scripted press release, it sounds as if Netflix just now realized that a lot of viewers still prefer DVD's. Yeah, right. So now they're going to charge more so that they can offer. And the DVD plan is an add on to the streaming plan? How so? Somebody way back in this thread said that this should make DVD's only customers happy since now they won't be subsidizing streaming? What planet did you just drop in from bub? Do you think just because some big shot exec says that, it makes it so? Not hardly. I guarantee you that this increase will not increase the DVD offerings one iota from the dwindling suppy it has been for the past year. I also guarantee you that they will not replace any of the myriad of DVD's that are no longer available, a group that is growing steadily in leaps and bounds. All you have to do is think of that extra cost they began charging blu-ray customers so they could offer better blu-ray service. We know how far that went. Same thing here. Netflix is no different than any other corporation: put out a press release with some flowery prose telling customers what they are doing for their consumers, which is simply a way of disguising the fact that they are saddling you with a huge price increase.
Posted by: ClydesMP | July 12, 2011 at 06:50 PM
Netflix is killing me. The second price increase in less than a year. I'm not sure what to do. I went with no cable because of Netflix's streaming and great DVD library but they're starting to approach the cost of cable. Maybe I need to back to pre-TV and radio and just read for my entertainment....or go to bed at sunset.
Posted by: John Bardsley | July 12, 2011 at 06:52 PM
We first got the streaming only, but a lot of the movies/tv shows I wanted were only available by DVD (if available at all). So ok, $2 extra a month, I can deal with that.
My mom loves the streaming and I like it too, but streaming only has old and discontinued TV shows and old movies--not many recent ones.
I could probably deal with another $2 increase, but SIX DOLLARS???
I am seriously considering another avenue... How does Hulu + stack up?
Posted by: Heather Skrz | July 12, 2011 at 07:14 PM
Anyone hear how they are going to handle the concurrent stream issue? Current plans tie it to the amount of dvds you have out at a time.
If plans are now separated, how will they determine? Will they lock it at one per account or make it unlimited? Although I would think that is highly unlikely.
It will really stink if they force you to subscribe to discs to stream more than one device, or force you to sign up for multiple streaming services.
Posted by: Kal Sostarecz | July 12, 2011 at 07:18 PM
And Netflix isn't on Android, so no plus there...
Posted by: Heather Skrz | July 12, 2011 at 07:34 PM