Netflix Subscription Plan Update


For those of us who use Netflix, may it be the streaming-only service or the DVD/Blu-Ray with streaming service, the latter might be a little disappointed with this news. Netflix has opted to separate both DVD and Blu-Ray plans from the streaming plans. The streaming-only plan will remain $7.99 a month, but since the DVD plan included streaming, it was only $2 more a month for adding DVD onto the plan.

Netflix says that didn’t make sense financially, and since DVD rentals are still huge with the service, they wanted it to make better business sense. This is why they divided the plans, and the DVD plan will now be the same price as the streaming plan, at $7.99. 2 discs out at a time will be $11.99. In comparison, the 1 Blu-Ray/DVD plan (that included streaming) was $12.99.

At least with the new plan, Blu-Ray renting will be at $9.99, $2 more instead of $3 (and another $1 for each additional disc). Now, here is where the problem starts, though. Since this new plan separates streaming and disc services, subscribers will need to get the bundled service (which doesn’t offer any discounts) if they want both. Those of us currently on the1 DVD/Blu-Ray/Streaming plan pay $12.99 a month, plus tax. With the new subscription update, it will be the $7.99 streaming service, plus another $9.99 for the Blu-Ray/DVD, resulting in a $17.98 bill instead, which, quite frankly, is completely unfair from a consumerist standpoint.

Here’s another kicker. The DVD-Only plans only allow up to 2 DVDs/Blu-Rays at a time, so if you currently have the 4 DVD plan, and you want to continue with 4 DVD rentals, you will be forced to get the 4 DVD with streaming, which will now cost you $29.98 a month, $34.98 with Blu-Ray. Same goes with the 3 DVD (albeit at a lower price).

For new subscribers, these subscription changes are immediate, but for people who already subscribe to Netflix? We’re not safe, either. If you haven’t changed over before September 1st, you will wind up having to pay AT LEAST the $17.98 ($15.98 if you don’t rent Blu-Rays), depending on the number of discs you have for your current plan.

Personally, I might just switch to the Streaming service, as I don’t really watch my disc-based movies as much as I should anyway, and I take forever to get around to them. But still, for those who use both aspects of the service? They’re getting the most mistreatment by this new pricing model. I still love Netflix, though.

Source


Written by: Jay - Community Manager / Editor-In-Chief


  1. #1 by Tosh on July 12th, 2011 [ 1102 Points ]

    Ya, that is indeed quite a jump in prices … I just do the streaming anyway.

  2. #2 by Jay on July 12th, 2011 [ 83111 Points ]

    Well, the streaming option has been around for a while (since November), but this new setup separates the two services, which brings the DVD plan down to the same price as the streaming, but doesn’t include the streaming.

    If you only do the streaming, and you currently have the DVD plan, you could have changed it back then lol, but no, it is not automatic. You need to go into your account and select “change my plan” before September 1st, or they will force you to pay that $15.98 to have both streaming and DVD.

    You can still get the bundled services, but there is no discount in doing so, as it adds the $7.99 to the price of the DVD/Blu-Ray service price (plus the 3 and 4 disc options, which are not available for the disc-only service)

  3. #3 by Tosh on July 12th, 2011 [ 1102 Points ]

    Sorry edited my comment. Ya, I don’t want to pay that much extra a month for the DVD option as nice as that would be..

  4. #4 by Oly on July 12th, 2011 [ 131925 Points ]

    Ouch.. i’m going to be with the streaming only option for sure

  5. #5 by ZFM12 on July 12th, 2011 [ 1485 Points ]

    I wonder why they are doing this? The price increase and all?? I only do streaming, if wanna watch a movie i just download it. Alot of people are gonna be pissed off.

  6. #6 by Pedro on July 12th, 2011 [ 39949 Points ]

    Great… just when they finally announce the service over here ¬¬

    I guess I’ll keep on renting at the store, as it’s less than 5 minutes near my house and I like the walk.

  7. #7 by rEnNiS on July 12th, 2011 [ 180 Points ]

    Before this was even announced, I decided to switch to Instant Streaming only. I figure if there is ever a disc I want to watch, I can just go to my local RedBox and rent it for $1 per day. Now I’m really glad I decided to do this.

  8. #8 by The_Nmac on July 12th, 2011 [ 42703 Points ]

    I’m waiting for the selection of movies and shows to get better in Canada. They launched the streaming only here last year however their new releases were two years old. They have gotten better but still not where it needs to be. Hopefully it will get better one day.

  9. #9 by EdEN on July 12th, 2011 [ 136065 Points ]

    Things keep getting more expensive and, from a business perspective it makes sense. As a consumer, those that have a sub should definitely complain as it is NOT what they signed up for and could, in theory, sue Netflix over it.

  10. #10 by premiersoupir on July 12th, 2011 [ 17020 Points ]

    Netflix is just driving people away from the physical media, which probably does make perfect sense to them, as shipping requires a deal with the postal service and involves loss, theft, and breakage (the latter is all too frequent in my experience). I went streaming-only a year or so ago, mainly as I got tired of having discs hanging around for weeks without ever getting around to watching them. I pick up the occasional new release on blu-ray from the red box. But we’ve so many convenient streaming options now, I don’t much miss the physical media.

  11. #11 by Eddie on July 12th, 2011 [ 44542 Points ]

    I messaged this to Jay earlier, but expect this to happen more and more with Netflix. Originally when Netflix acquired liscenses from the movie studios, they got them for very cheap. It was a new service with no competition. Now the movie industry realizes the money to be had in it. Its estimated that Netflix paid 50 million-ish for their current contracts, its now estimated it will cost them 1.9 billion-ish to renew. Expect that to be handed down to the consumer in the next year or two.

  12. #12 by premiersoupir on July 12th, 2011 [ 17020 Points ]

    Eddie: Its estimated that Netflix paid 50 million-ish for their current contracts, its now estimated it will cost them 1.9 billion-ish to renew.

    Interesting. Source?

  13. #13 by Kane112 on July 12th, 2011 [ 33422 Points ]

    eh ill stick with just streaming and go to good old red box for DVD/Blu-ray

  14. #14 by Eddie on July 12th, 2011 [ 44542 Points ]

    premiersoupir:
    Interesting. Source?  

    http://money.cnn.com/2011/07/08/technology/netflix_starz_contract/

    took me a minute to find it lol. I just half asleep read it first thing this morning.

  15. #15 by Pedro on July 12th, 2011 [ 39949 Points ]

    Eddie:
    http://money.cnn.com/2011/07/08/technology/netflix_starz_contract/took me a minute to find it lol. I just half asleep read it first thing this morning.  

    Holy s***t! I had no idea Netflix was so huge!

  16. #16 by premiersoupir on July 12th, 2011 [ 17020 Points ]

    Fascinating stuff. Thanks for the link, @Eddie!

  17. #17 by Squirtbot on July 13th, 2011 [ 115 Points ]

    Once again Netflix is dropping the ball. I really hope another service comes along and puts them out of business.

    1. Raise in price, again.
    2. DVD releases are months late
    3. iPhone app is crap, try adding a movie.
    4. I have to go to Redbox to watch new movies.
    5. Instant stream is 65% garbage.

  18. #18 by Squirtbot on July 13th, 2011 [ 115 Points ]

    6. Shouldn’t our plans be locked in like phone contracts. I shouldn’t have to re-plan

  19. #19 by Jay on July 13th, 2011 [ 83111 Points ]

    Squirtbot: 2. DVD releases are months late

    That’s not Netflix’s fault. That’s mostly the fault of the movie studios because they think Netflix rentals are going to take away money from actual sales so they will only license the movies to retailers and certain rental places. Even some Redbox units aren’t allowed to have certain movies because of that.

    Squirtbot: 6. Shouldn’t our plans be locked in like phone contracts. I shouldn’t have to re-plan

    It’s not a contract, so they have a right to change plans. If we were under contract after signup, then they’d legally have to abide by it until it either expires or you forfeit your contract via cancellation, but it isn’t one so that’s irrelevant.

  20. #20 by Sinlock on July 13th, 2011 [ 7625 Points ]

    I’ll most likely drop Streaming and go back to disk service.

    I’ve never been happy with the picture quality, the sound is often slightly out of sync, Movies tend to reach the stream catalog later than the disk catalog.
    And as much as I might enjoy to watching them, 82 year old Buster Keaton movies should not listed as a NEW RELEASE!

    I will miss being able to watch the large selection of Nature Docs but I’ll get my fill between now and Aug 31st.

    I will admit that I’m lucker than alot of folks because the town I live in happens to have a Netflix shiping center, so I send one out on Monday and get back on Wednesday.

    It just boils down too this…

    My wallet is far from empty, but it’s funds are finite, and at times I vote with my wallet.
    Netflix….. I VOTE NO!

    (cc your posts here)
    http://blog.netflix.com/


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