Netflix Set To Increase Prices and Split Services
As a current Netflix subscriber I was none to happy to discover that my prefered DVD and streaming service is going to be increasing prices. For those Netflix subscribers which haven't heard yet, here are the details.
Netflix announced that it would be separating its streaming and DVD rental services, to let its users choose if they would prefer just one service or both. The result: The current $9.99 per month plan, which allowed only one DVD out at a time and which currently includes unlimited video streaming will jump to $15.98 a month under the new price structure. In return, Netflix will add a new offering of unlimited streaming or one DVD out at a time with a new
cost of $7.99 each.
Compare this to services like Hulu Plus (of which I'm also a subscriber) offering streaming Movies, current TV shows and Video shorts for only $7.99 a month and I think you'll find that Netflix is most likely positioning itself for the certain waive of competition on the future front of the entertainment industry.
Even still, many Netflix users, like myself, weren't too happy to receive the news of a price increase.
Current Netflix users left over 3,000 posts on the streaming and DVD services Tuesday and around 10,000 comments on the company's Facebook page. Most comments were accusing Netflix of being greedy and alleged it was trying to "choke more change" out of its customers. Others suggested refreshing the streaming content to justify the price change. While hundreds of others posters said, they would be leaving Netflix.
Netflix is set to increase prices to all of its subscribers on September 1st. New subscribers already will pay the new prices, unless of course Netflix backs down from its plans under the threats and pressure of a mass exodus from social comments.
Are you a Netflix subscriber? Tell us your thoughts on this new price structuring? Will you stay with Netflix or look to the services of a competitor?