Netflix announced yesterday a new pricing for their offerings. This announcement did not go over well with Netflix customers. The announcement triggered over 27,000 comments on the Netflix Facebook page. I could not find a positive comment in this stream of anger and announcements of service cancellations. So what did Netflix do?
Netflix is separating streaming and movie by mail into two distinct plans. If you have used both at the same time you will pay soon more. Not a little more, you pay double. For DVD only you actually now get the lowest price ever, but that seems not find any friends either. The Netflix unlimited DVDs is now only $7.99 a month for 1 DVD out at-a-time plan and $11.99 a month for 2 DVDs out at-a-time plan.
The unlimited streaming plan is now also $7.99 a month. Before you could add DVDs by mail for $2 to your unlimited streaming plan.
Netflix argues that they see still a large market for DVD only plans and therefore they are separating the offers. So when you want both you actually have to pay $15.98. I already argued yesterday that Netflix should have given subscribers some break when they ordered both. What is also an issue is that the streaming catalog is still way thinner than the DVD by Mall catalog. I assume this is why many Netflix customers maintained the DVD by Mail option. Now to get the convenience of streaming and the access to all movies available on Netflix youl would have to pay $16.98 instead of $9.99.
I suggest Netflix is making at least an offer to existing customers of both that keeps them happy. My suggestion is $11.99.
Netflix has now 23 million members. If they do not get this social outrage managed there will be soon a lot less members.