Netflix announced a dramatic price hike in this latest press release. I am currently on Unlimited DVD 1 DVD out-at-a-time plan with Blu-ray option and unlimited streaming for which I pay $11.99 plus tax. The updated price for me to keep this plan would be $17.98 which is a good 50% hike. Basically I would be signing up for two plans in their new system, the unlimited streaming and unlimited DVD 1 DVD out-at-a-time each costing $7.99 each and an additional $2.00 for Blu-ray option. The idea of splitting into two plan is perfectly fine provided both offer a similar catalogue. Unfortunately this is not true, the streaming catalogue is not as diverse as the DVD catalogue.
I would be perfectly fine with the hike if Netflix offered some form of a lowered bundled deal. First, not all the content I would like to see is available for streaming. Second, I would rather see movies from a disc than using streaming because the streaming offers only 2.0 audio at the moment on my Oppo. I prefer watching TV shows as streaming rather then getting discs because I take forever to watch a season and dont want to be stuck with the option of not being able to watch a movie. It would be appropriate if Netflix charges a lower price for the bundle around $12.98 with an additional $2.00 for the Blu-ray option. I am sure that many of the long standing customers would be considering to jump ship with this hike. I am sure people would be more understanding if Netflix offered a lower bundled plan.
What is the driving factor behind this move. Netflix has a higher profit margin if people just stream the content as opposed renting them on discs. If they do not improve their online streaming catalogue they are going to alienate a lot of customers. If every one of the Netflix customer just boycott the online streaming option and take the option of just renting discs it surely will have a huge impact on Netflix. One could then add the streaming option back when they got their senses back. I am sure the folks up at RedBox and Hulu are extremely happy and would surely gain a lot of customers.
