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Obsolete? Netflix introduces "streaming-only" options for customers
Netflix online streaming fans who could care less about renting DVD’s by mail can now save some money on Netflix’s newly-announced Streaming Only service plan, available now for $7.99 per month. New and former customers can now also obtain a one month free trial of Netflix’s online and traditional plans, up from the former two week free sample.
The new streaming plan comes after moderate success offering online video to Canadian customers. Netflix has been slowly transforming itself into a streaming-media company, as costs to package, ship, and process DVD’s by mail continues to rise. About 20 percent of Netflix’s catalog is available for instant viewing on a computer screen, smartphone, or larger living room TV (with the help of a set top box, Netflix-equipped DVD player, or videogame console).
For customers who prefer getting physical DVD’s (or just want the 80 percent of Netflix’s catalog not available online), some bad news. The company is raising rates beginning tomorrow. The rate increase amounts to $1 for every DVD a plan allows to be checked out at the same time. For the company’s popular 3-out plan, the monthly rate rises $3, from $16.99 to $19.99 per month, plus applicable tax.
Most Netflix streaming fans subscribe to the company’s 1-out plan, the lowest price option that includes unlimited streaming. That plan rises in price by one dollar to $9.99 per month (plus tax). If the rent-by-mail option is of little interest, consider downgrading to the streaming only plan and save two dollars a month.
It will be a long time before Netflix can offer its entire catalog online. Larger studios with close ties to cable companies are lengthening the window before certain titles can become available for instant viewing. Three of the six major Hollywood studios will not offer movies through Netflix’s online viewing service until HBO’s contract to show the movies expires. For many titles, that means at least seven years after the movies are released on DVD.
Netflix's New Rates
[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/WSJ Netflix 11-29-10.flv[/flv]
The Wall Street Journal’s Digital Network discussed the implications of Netflix’s new streaming plan and the potential impact of the rate increase for traditional DVD rental customers. (4 minutes)
Netflix in its current form is DOA. A few times a yeas a little more each time.
Netflix needs to do some serious upgrading of it’s streaming library before I would consider going streaming only. There’s countless movies, tv shows, etc from a several years to decades old that you still can’t stream and then there’s recent stuff you can stream, which seems pretty rediculous to me. There doesn’t seem to be any rhyme or reason to what and what is not available for streaming. I do have to give them their proppers for the visual and audio quality of their streamed content though. I have no complaints about that. It’s currently DVD quality and I hear… Read more »
This isn’t Netflix’s fault, they’ve been trying to license everything they possibly can but the Cable Companies and the Movie/Content providers refuse to license the majority of their shows for streaming, let alone the enforced delay on DVD’s for rentals that’s likely to get pushed back another 30 days to 60 days from release. The streaming is complicated because the Cable Companies account for over 80% or more of the movie and tv show producers income. So companies like Comcast, Time Warner, etc threaten to pull their channel(s) along with the majority of their income if they sign with Netflix… Read more »