Netflix Changes

This morning while checking my Facebook feed I saw that my older brother was very unhappy with Netflix. I figured it would be one of two things… Either “Justin Bieber: Never Say Never” still wasn’t available for rental or his subscription fee increased. Turns out it was the latter of the two.

Like many other people my brother has the unlimited DVD rental-unlimited streaming combo subscription. A plan which had an incredibly attractive price of just $9.99. That price is now gone, and a new pricing scheme has been released from the company.

The cheapest plan available was and still is $4.99 per month. That subscription allows two DVD rentals monthly. Unlimited DVDs is now an option (one at a time) for $7.99 which is the same price as unlimited streaming. So, add those two together and you get $15.98 for the unlimited plan. See why big brother is so angry? That’s a 37.5% increase for nothing being added to his plan.

Will this change hurt Netflix? Probably not… The stock is up today, they still have the best selection of available DVD rentals, and the new price isn’t absurdly high. Streaming all those movies to their millions of subscribers is quite the cost and licensing fees increase as more and more people join their service. It was only a matter of time before such a change occurred.

Hopefully my brother doesn’t cancel his plan… I’ve been mooching off that for over a year now and the streaming service is clutch for my lazy Sunday’s.


Posted on July 13, 2011, in News, Tech. Bookmark the permalink. Leave a comment.

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