Netflix Radically Changes Price Plans; Charges Hefty Fee
It looks like Netflix watched the success of Hulu Plus, and thought to themselves, “Hey boys, I think we can be making a lot more money, here!” The company has radically changed its pricing structure for its Netflix customers, and may cause many to leave.
While customers previously had the option of choosing an $8 streaming plan, they could also pay $2 to rent out one additional DVD at a time.
Now, the plan costs $7.99 for streaming only, or $7.99 for DVD only. One could of course opt to receive both services, but it would cost them $16 a month. Of course, this new price structure applies immediately to new customers.
Existing customers will be able to enjoy their current pricing until September 1st. Netflix hints that the move was done to give the DVD industry the respect it deserves by treating DVD rentals as a proper business.
If you take into account that Netflix streaming ‘menu’ offers 20,000 titles, users are a bit cornered to order the DVD service as well (providing access to over 100,000 movie titles).
Another issue for new customers is that when you sign up, the streaming plan is selected by default with the DVD add-on for $7.99, making it impossible to choose solely the DVD plan. What a way to milk customers for their money!