Netflix streaming-only plan and new pricing for DVD plans announced

Netflix has been toying around with offering a streaming-only plan for the past few months. In a new blog post, Netflix VP in Marketing, Jessie Becker released an update to the available Netflix plans and pricing to go along with them.

While new users, or those who only use the streaming portion of Netflix will be happy with the cheaper plan of $7.99, versus having to pay $8.99 for DVD and streaming services, those who wish to keep their DVD availablility will not be pleased. Netflix has bumped up the prices of their DVD plus streaming plans by $1 or more.

As Netflix decides to turn more to a streaming service instead of a DVD rental service, the decision to increase prices all around is to help offset the the cost and upkeep of the servers used for streaming. 

Becker also addresses their reasoning behind not including a DVD-only plan, which is all some users would want. Mainly, this comes down to where the Netflix priorities are, and they have this to say:

The fact is that Netflix members are already watching more TV episodes and movies streamed instantly over the Internet than on DVDs, and we expect that trend to continue. Creating the best user experience that we can around watching instantly is how we’re spending the vast majority of our time and resources. Because of this, we are not creating any plans that are focused solely on DVDs by mail. 

Hopefully, with Netflix focusing on streaming their library will increase ever more to provide an upper hand over other services. Netflix views the future as streaming-only as more internet-enabled devices appear. Adding this new streaming option will gain new users, but at the same time may push subscribers to go for the streaming-only option as Netflix transitions into a digital rather than physical media company.

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Go to the Netflix fan site and I get more of a feeling that's the new price for new customers. that the old ones will have the price they have unless they downgrade or upgrade. Which is what I thought mine was under. Some are still in the $15.99 price for 3 out at a time. Guess we'll see what happens when it happens.

Ok this is horse crap.. I stream through my Wii but best I can get is near DVD quality and that's using Component cables. My biggest beef with this is that its going up $1 more when I honestly think if you already have the service you should be grandfathered in!! Lastly, the amount of titles they have you can stream should be ALL OF THEM!!!!!

sava700 said,
Ok this is horse crap.. I stream through my Wii but best I can get is near DVD quality and that's using Component cables. My biggest beef with this is that its going up $1 more when I honestly think if you already have the service you should be grandfathered in!! Lastly, the amount of titles they have you can stream should be ALL OF THEM!!!!!

I want EVERYTHING!!!

And I want to PAY LESS FOR IT!!!

The_DINGUS said,

I want EVERYTHING!!!

And I want to PAY LESS FOR IT!!!

LOL no that's not what I meant.... clearly in current economic times they should refocus on what they are doing. Plus offering streaming titles that they don't offer now would be better than mailing them as it would be cheaper in the long run. They don't offer half the titles they should and I blame alot of that nonsense on the movie producers. Look at what happened to movies such as Avatar.. subs had to wait another month to see it over Netflix instead of the day it released for sale on DVD/Blu-Ray all due to greed and them thinking that would force people to go out and buy a copy... the hell with that!! I'm not about to go out and buy a copy of a movie when I would only want to watch it once.

Course I'm guessing their phone lines will be quite busy. not as if they can be emailed. well they can but it's tricky. Gotta pretend your into the PR, it'll also be tricky for them if USPS cuts off Saturday. Upping the price and losing a day won't make many people happy.

wouldn't even bother trying tv shows on wireless. Seems Netflix is pulling a Vista. Putting it on stream before the hardware is available. Now if you've got the hardware, it's just fine. I don't., and it's out of my hands. It's in the ISP's hands, saying more people now are watching online than dvd's?? uh probably because they are out buying blu rays. And Netflix is on par in VHS quality but not in dvd quality. So I'll have to tone it back to 2 disks because the $20 out is pushing the price. we'll see. At one time the service was $25 and they almost killed themselves. Lets see what happens now.

My long time grandfathered 4-DVD plan is going up from $16.99 to $19.99. Boo. LOL!!!

I use Netflix on the Wii and many of the title's I've watched were unacceptably choppy. My Wii one foot (same shelf) from my Netgear WNDR3700. DVDs are still a better option for me right now.

Image quality? Good enough for me.
Movie selection? Could be better but it could be worse. Tons of content to look for and you might just find something you like.
Newer releases. Pretty poor but to be honest, I have 2 movies places within 6 blocks from me. 1 being within 2 blocks(actual movie place) and the other is a Blockbuster kiosk($1.00 rentals) . No biggie for me there.

Netflix mixed with Hulu and I'm all set.

I have no problem with the quality even thought half the time I can't get full bars. I guess Comcast's 24 mbps connection is not enough to stream a movie The problem I have, like others have posted is the poor and I mean poor choice of movies available for streaming. If you want old Westerns then Netflix is your service, but forget about getting anything in the past 2 years.

i love netflix, the love the picture quality, i love 5.1 from my ps3 to my home theatre, i love playing something downstairs, pausing and bringing it upstairs to the laptop.

i just hate how old the releases are!!! would be nice if the library was bigger and more current

I just checked my account and they are grandfathering people in. So if you are on the $8.99 unlimited plan you will keep the $8.99 pricing. Here is the message I get:

Your plan is no longer offered

You are currently on the 1 DVD out at-a-time (Unlimited) for $8.99 plan which is no longer offered. If you select a new plan, you will no longer be able to return to this plan.

That now means that it is cheaper to purchase 2 plans that include 3 DVD's a month then to purchase a single plan for 6 DVD's a month.

Hendrick said,
That now means that it is cheaper to purchase 2 plans that include 3 DVD's a month then to purchase a single plan for 6 DVD's a month.

That was the case before the price change as well, I don't see the issue here. (16.99 * 2 = 33.98) < 35.99

It's be nice if anything recent were available for streaming... Many of the cable (HBO/Showtime) shows only have a single or maybe 2 seasons available for streaming.

acnpt said,
Kind of a shame, jobs wise.
Stores>Distribution Centres + Mail>A few data centres.

Oh wahh.

Its a shame we have movies to begin with, think of all the local out of work actors who could be performing in your local theater.

The_DINGUS said,

Oh wahh.

I know, I know .
But it will be the tax payer/medical insurance who will end up paying when low skilled people can't get jobs in the future.

Although I prefer streaming myself too.

The_DINGUS said,

Oh wahh.

Its a shame we have movies to begin with, think of all the local out of work actors who could be performing in your local theater.

lol

The biggest issue I have with Netflix is the pathetic selection of movies available for streaming; average 85% of the movies I am interested to watch are only available on DVD media.
Either way Netflix fix this problem ASAP or they will end up in trouble....

+1

I'll pay the extra 2 bucks for the DVD option. Maybe in a year or two the streaming selections will be equal to the DVDs.

In the long run, this is a good move for Netflix. But in the short term, they are vulnerable to companies, if any even exist, that could offer a more robust streaming catalog.

Well obviously they see the advantage of streaming over DVD, but they already have a lot of physical media that they won't throw to the garbage (because is money already spent) and the streaming requires more servers so basically they are not going to put all their money, but instead bump up a buck or 2 and make us pay for all that...eventually the streaming part would be over DVD, it just wise cost management of company restructuring... 8-)

"You are currently on the 1 DVD out at-a-time (Unlimited) for $8.99 plan which is no longer offered. If you select a new plan, you will no longer be able to return to this plan."

I think I'll stick to this.

Historically, subscribers automatically get a revised billing experience. So, your next monthly bill will reflect the updated price for that plan.

schiz-o-phren-ic said,
Without notice? I doubt it. I think this only applies to new members.

Notice arrived in my email box about 10 minutes ago...

the beginning of the end

dvd's are going away. Netflix has a lot of competition with streaming from amazon and other places. 10 years from now netflix will be the AOL of this decade

Not sure I agree, but even if that happens, I'm sure those who run Netflix will be more than happy with the millions they are bringing in right now.

Amazon's prices for watching movies are more like Blockbusters. In other words, too high! I'm not going to pay $3.99 or more to watch 1 movie on Amazon when I only pay $9 for Netflix unlimited. Now if/when Amazon offers a monthy plan, then we'll talk.

Of course they won't offer a DVD only plan. They need to prop up their streaming numbers by showing their entire user base is "capable" of streaming. Then they don't have to show that streaming is big with 10% of their user base or similar.

Frazell Thomas said,
Of course they won't offer a DVD only plan. They need to prop up their streaming numbers by showing their entire user base is "capable" of streaming. Then they don't have to show that streaming is big with 10% of their user base or similar.

They do still offer the $4.99 DVD-only plan, but you are limited to one DVD at a time, and only two a month.

roadwarrior said,

They do still offer the $4.99 DVD-only plan, but you are limited to one DVD at a time, and only two a month.

I'm sure it still comes with streaming built-in. As the lowest plan used to have 20 hours or something like that built into it.

This allows Netflix to make the case their streaming user base is bigger than it may be. As it allows them to obscure what the actual streaming adoption rate is among their users.

Frazell Thomas said,

I'm sure it still comes with streaming built-in. As the lowest plan used to have 20 hours or something like that built into it.

This allows Netflix to make the case their streaming user base is bigger than it may be. As it allows them to obscure what the actual streaming adoption rate is among their users.

Nope. My mother in law had this plan and when she got her roku her netflix account wouldn't allow for streaming. So she had to upgrade to the 1 dvd plan with streaming.

Frazell Thomas said,
Of course they won't offer a DVD only plan. They need to prop up their streaming numbers by showing their entire user base is "capable" of streaming. Then they don't have to show that streaming is big with 10% of their user base or similar.

you'd probably be surprised to learn almost 50% of netflix customers actually use their streaming services.

This isn't surprising given Netflix's goal has always been streaming and DVD rental was only meant to get their foot in the door. I think they are correct in that this is a great move for the majority of their users.

Although...they really need to step it up with their streamed offerings. If they want to push streaming, they better back it up with the same excellent service their customers have come to expect.

Xenosion said,
This isn't surprising given Netflix's goal has always been streaming and DVD rental was only meant to get their foot in the door. I think they are correct in that this is a great move for the majority of their users.

Although...they really need to step it up with their streamed offerings. If they want to push streaming, they better back it up with the same excellent service their customers have come to expect.

Founded in 1997... it's pretty obvious, their goal hasn't always been streaming... they have made billions off the the DVD rental plans, and they have the logistics so automated it's nothing to them.

Where did you get your info that that has always been their plan?

xendrome said,

Founded in 1997... it's pretty obvious, their goal hasn't always been streaming... they have made billions off the the DVD rental plans, and they have the logistics so automated it's nothing to them.

Where did you get your info that that has always been their plan?


Don't know but I heard it was their plan years ago.

Do I get all the movies from the 1980's or just the crappiest ones? There is a serious lack of selection available for streaming. Its pretty useless unless you want to watch re-runs of Golden Girls.

Shadrack said,
Do I get all the movies from the 1980's or just the crappiest ones? There is a serious lack of selection available for streaming. Its pretty useless unless you want to watch re-runs of Golden Girls.

What's wrong with the Golden Girls

Of course, the Netflix versions aren't of much use since I have all but two of the DVD Box Sets.

Shadrack said,
Do I get all the movies from the 1980's or just the crappiest ones? There is a serious lack of selection available for streaming. Its pretty useless unless you want to watch re-runs of Golden Girls.

Really? I've watched Imaginarium of Dr. Parnassus, Alice in Wonderland, the latest available Family Guy and American Dad volumes, quite a few classic kung fu movies, etc. in the past month. They don't have new releases for streaming, but they have quite a selection.

Well...I was being a little sarcastic to make a point . IMO, everything that is available via iTunes Music Store via one-off rentals should be available through Netflix streaming service.

Shadrack said,
Well...I was being a little sarcastic to make a point . IMO, everything that is available via iTunes Music Store via one-off rentals should be available through Netflix streaming service.

Most of the problem there is licensing restrictions from the content owners. If they don't want Netflix to stream the content, then there isn't much that Netflix can do about it. I'm sure that content owners get more money from iTunes rentals than they do from Netflix streaming. How much would it cost you to stream all of the previous seasons of a given TV show? It would only cost you (now) $7.99 for an entire month of access, and there are no limits on how many shows you can stream during that time.

roadwarrior said,
Finally! I'm going to switch to the streaming only plan right now.

Wish they had more in HD when streaming tho. Not bad picture quality now, but a little better wouldnt hurt.