Netflix Raises Prices

by Sherrian Crumbley on November 23, 2010

in General

Netflix Streaming

photo by Solacetech

Yes, you read that correctly, Netflix is increasing the price of some of its subscription plans. I first saw an article on Yahoo, and then an hour later I got an email from Netflix informing me that they will be raising the price of our subscription plan starting in January.

Netflix will introduce a plan that allows you to have unlimited streaming movies and TV shows, with no by-mail DVD rentals, for $7.99.  The lowest plan that offers 1 DVD at-a-time by mail will increase by $1 a month, and there will be other increases announced.  Netflix explains the reason for the increases:

Why the changes? Our selection of TV episodes and movies available to stream has grown dramatically, and as a result most members want us to deliver unlimited movies and TV episodes two ways: streaming instantly over the Internet plus DVDs by mail. The price change will allow us to continue to offer the popular plan choice of unlimited TV episodes and movies streaming instantly along with unlimited DVDs.

The new plan, which does not include DVDs, is a great option for the increasing number of members who only want to watch instantly. The $7.99 a month price reflects no DVD shipping costs on this plan.

What I found interesting is that they only explain the inclusion of the “streaming only” service, but never address the price increase on the subscription plan!

According to the Yahoo article, Netflix is interested on focusing on their streaming programming as their primary business as many more consumers use the Internet as their main form of home entertainment.  Netflix CEO Reed Hastings was quoted as saying, “We are now primarily a streaming video company.”

As they decrease their DVD business, it is lucrative for them to increase what they can offer instantly, and as a result, we are paying for it.

Reader Questions:

Will you stay with Netflix for a dollar more per month?

Are there other options you recommend for similar service?

© 2010, Sherrian Crumbley. All rights reserved.

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