Saturday, August 13, 2011

Netflix price change

ecently Netflix changed the way their subscription plans worked. For $7.99 you get unlimited streaming movies and TV shows. Adding DVDs is extra. Previously, streaming was free with any subscription. To get the same service, you have to pay $7.99 for streaming plus $7.99 for one DVD at a time.

For some time now, Netflix has indicated that they intend to focus on streaming rather then DVDs. In line with that objective, every Netflix customer subscribes to streaming. For the same service you could pay $11.99 for one DVD at a time through Blockbuster and watch streaming DVDs through Blockbuster for a per rental fee. Or you could pay for Blockbuster and pay for Hulu Plus for $7.99 to get streamed movies and TV shows and not have the same wide selection available through Netflix.

Clearly if you want both DVD and streaming, the best option will be Netflix. If you are only interested in DVDs, go with Blockbuster. At $7.99 for the base subscription and a large and increasing selection of streaming videos, I think I will stay with Netflix, at least until I have exhausted the available streaming movies I want to see.

While it is true that we have to pay more for the same service through Netflix, we were really getting a much better deal and changes in the market have forced Netflix to change its pricing structure. It is an understandable and inevitable fact that markets change and companies much make changes to reflect the underlying market.

Edit: I have found out you can choose 1 disk at a time for $7.99 from Netflix without streaming which beats Blockbuster's price.

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