Netflix Raises Prices and Infuriates US Customers
Netflix Ditches Combined Streaming and DVD plans for US Customers
Netflix has changed its subscription structure, which will raise prices for existing streaming and DVD customers by 50%
Netflix used to offer:
- $7.99 per month for 1 DVD at a time (unlimited DVDs per month)
- $11.99/month for 2 DVDs out at a time (unlimited DVDs per month)
- +$2/month to add unlimited streaming
The new price structure will look like this:
- $7.99/month unlimited streaming
- $8.99/month for 1 DVD at a time (unlimited DVDs per month)
- $11.99/month for 2 DVDs at a time (unlimited DVDs per month)
Netflix says that this consitutes the best-ever value for its customers, but that is not the case. Netflix math is wrong: how does charging a former $9.99/month customer the new price of $15.98 constitute a good deal?
The disconnect on Netflix' part seems to lie with the streaming option: the selection of streaming movies is only a fraction of what is available via the DVD library. In practice, unless a customer only likes blockbusters and rom-coms, he or she will eventually need to sign up for a DVD plan... and see that monthly bill double.
Of course, that customer may just switch to Amazon, Auteurs, or other on-demand services.
One can picture Netflix expecting its announcement to be met with cheers, but check out the Netflix blog to see how angry its customers are.
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Various, Various, United States