This was both inevitable and makes sense. While Netflix seems surprised by continued demand for DVDs, they also know that this will die over time. And whether they’ll admit it or not, this move will further help facilitate that demise.
The future is streaming, not physical media.
I do like how Netflix is very upfront and clear about the pricing changes. What was previously $9.99 (DVDs plus Streaming) will now be $15.98 (DVDs and Streaming as two separate plans).
That’s a big hike. But again, inevitable, and the right thing to do from a business perspective.
It feels to me like they’ve priced themselves into a corner. $7.99 for streaming seems underpriced, given the licensing fees they’ll need to pay (especially when it’s time to renew those contracts), but when compared to $7.99 for the warehousing and fulfillment of real DVDs, it seems expensive.
This change is interesting because it doesn’t follow normal pricing rules. Typically, companies are motivated to bundle because they can extract more value from consumers of both products. Perhaps this is just a temporary stepping stone but I won’t be surprised if there’s another pricing adjustment in the next several months because they are leaving money on the table.
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speed-up-my-pc reblogged this from parislemon
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pan566 liked this
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rayansud reblogged this from parislemon
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chrissc85 liked this
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ksaim reblogged this from parislemon and added:
From a $$$ perspective it
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inkyeagle reblogged this from parislemon and added:
convenient for me, but...need more selection in their streaming catalog.
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youmefearlessly liked this
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youmeandmyapi reblogged this from jryu and added:
Bundling has been the right thing to do when there was oligopolistic competition, but in a field as fluid as this, if...
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thebrowncoat reblogged this from parislemon and added:
that they’re taxing...DVD model (rather than raising the streaming price) to pay the...
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judsondunn liked this
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peculiaris liked this
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lamiavitasenzame liked this
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kw2335087 reblogged this from parislemon
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jryu reblogged this from caterpillarcowboy and added:
This change is interesting because it doesn’t follow normal pricing rules. Typically, companies are motivated to bundle...
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ssssarrrrahhhh reblogged this from elle-oh-elle
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thisshouldbenmp liked this
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caterpillarcowboy reblogged this from parislemon and added:
they’ve priced themselves into...corner. $7.99 for streaming seems underpriced, given
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stay-c liked this
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chwhenjamin reblogged this from parislemon
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laurarose liked this
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herblondness liked this
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elle-oh-elle reblogged this from parislemon and added:
Sorry, Netflix. I don’t think this...the right route. I didn’t have a problem when you...
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subtleiconoclast reblogged this from parislemon and added:
I had just downgraded my...from 2-DVDs-at-a-time+streaming to 1-DVD-at-a-time+streaming,...
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parislemon posted this
