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Netflix Announces MORE Price & Plan Changes You Probably Won’t Be Happy About
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The Movie God   |  @   |  
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Just last November, Netflix announced that they would be increasing their prices due to their ever–growing selection of movies and TV shows available to watch instantly or on DVD and Blu–ray.

At the time, most customers seemed to be upset over the price changes—the company does offer an gigantic amount of movies and shows to watch, but they’ve always had trouble getting what people actually wanted to watch. The vast majority of their titles are strange and obscure offerings most people have never even heard of. And while they have increased the amount of worthy options, many people still think the price isn’t worth the low amount of top–level movies and shows available.

All of that said, the video rental giant still projects to keep growing more and more each year, and they’re raising prices and changing their plans again to keep up with demand. Continue reading to see what’s being changed and how much it will cost you.

The biggest change Netflix is making is they will be splitting up their $9.99 DVD/Instant combo package. Easily the best value of the lot, this option opened up as much instant streaming as you could watch, as well as 1 DVD out at a time. Now the plans will be split into individual options, with either unlimited streaming or 1 DVD out at a time running you $7.99 per month. If you love having both, it will now cost you a whopping $15.98 per month. This just goes to show you how popular the instant viewing option is, as it is no longer just the “added bonus” it began as.

Netflix explained the reason behind the decision, saying:

Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didn’t anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering.

Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail, led by Andy Rendich, our Chief Service and Operations Officer and an 11 year veteran of Netflix.

Aside from that no other changes appear to have been made (yet), but it now looks like the best choice is to just drop DVDs altogether and fully embrace the instant streaming. That won’t be difficult for a lot of people to do, but I do feel bad for those who have faithfully used both services for so long. A jump from $9.99 per month to $15.98 per month seems, well…pretty rough.

These changes do not kick in immediately. You have until September 1, 2011 to decide if and how you’ll continue to do business with Netflix.

What do you think of these new changes, and will you continue using Netflix? On one hand, you have a company who is constantly growing and needs to keep increasing prices to keep up; while on the other hand, you have a large mass of customers—many of whom are struggling through these tough economic times—who aren’t ready to keep dishing out more and more coin they don’t always have.

[Source: Netflix]

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