Post Content

 

Netflix_4C_White_LogoNetflix, which offers consumers DVDs mailed to their home or instantly streamed through a wide number of devices, offers subscribers so much variety that sometimes choosing what to watch can be a hard choice. But the company announced yesterday a new choice that will be particularly difficult and one to which consumers should pay attention.

The company has been offering a flat-fee plan to consumers that includes DVDs mailed to the house plus access to its instant streaming catalogue. The new plan, however, splits those offerings into two separate plans, and does not offer a discount for both plans.

For example, a current plan that includes Blu-ray disc access and unlimited streaming is currently $11.99 a month (including an additional charge for Blu-ray discs). That plan would become two plans, starting on or after Sept. 1: A $7.99 per month streaming plan, and a $9.99 a month DVD-by-mail plan. That would be $17.98 per month, a 50 percent increase from the current membership.

So, consumers face something of a choice. They can pay a steep increase in their monthly fee – in the above example an additional $72 a year – or they can reduce services. That reduction, however, is a difficult one for consumers. While instant streaming offers incredible convenience through a number of platforms, the library offers significantly less depth than the hard-copy DVD library. The DVD-by-mail option, however, does not allow the same freedom as the instant streaming option. Already, consumers are voicing displeasure at having to make a choice.

Netflix is the dominant entity in the market, but others – like Hulu and Amazon – have been mounting challenges. How they react to the news – and whether they can pull market share away from Netflix as consumers review their options – will be interesting to see in the long run.

In the short-term, consumers should review their Netflix and decide how to proceed. The company’s emailed note to subscribers make clear that by doing nothing, the subscriber will be put into the dual plan with both services – essentially agreeing to a steep price increase. Consumers should decide how they want their plan to be managed going forward, and they should keep an eye out on the competition and see if they find an offering that they feel is better suited to their needs.

Written By:

Recent Posts

Financial Literacy Month 2021 posted on Apr 15

Financial Literacy Month 2021

Balancing a checkbook, making sure your expenses can be covered with your income, and saving for a rainy day emergency are all examples of financial literacy, or the ability to understand and effectively manage your personal finances. April is National Financial Literacy Month, a time   …Continue Reading Financial Literacy Month 2021

Protect Yourself Against Scams this Tax Season posted on Mar 18

Protect Yourself Against Scams this Tax Season

Tax Day is quickly approaching, and this year more Americans are planning on filing their taxes online, according to McAfee’s 2021 Consumer Security Mindset Report. Filing taxes electronically is a more convenient and efficient process but may open you up to scammers hoping to steal   …Continue Reading Protect Yourself Against Scams this Tax Season

Buy Here: My Local MA Promotes Patronizing Businesses Close to Home posted on Mar 11

Buy Here: My Local MA Promotes Patronizing Businesses Close to Home

There is no place like home. Or in this case, there is no better place to shop than close to home. Keeping small businesses in the Commonwealth alive and running has never been safer, easier, or more important. The My Local MA initiative, championed by   …Continue Reading Buy Here: My Local MA Promotes Patronizing Businesses Close to Home