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

Settling disputes with your landlord posted on Aug 24

Settling disputes with your landlord

    Most landlord and tenant relationships are professional, if not amicable, and without incident. But when there is a problem, how should it be resolved? There are various remedies that can address a host of problems between landlords and tenants. Find some below.     …Continue Reading Settling disputes with your landlord

Renting 101 posted on Aug 22

Renting 101

  The concept of renting seems easy enough – find a place that meets your needs, agree with the landlord on price and length of lease, sign and make your payments. But you should understand the importance of your obligations as a tenant as well   …Continue Reading Renting 101

Why Parents & Guardians of College Students Should Review Insurance Policies Before Move-In Day posted on Aug 17

Why Parents & Guardians of College Students Should Review Insurance Policies Before Move-In Day

  The last week of August is when most students start heading to colleges and universities. While your focus is likely on your student’s move and making sure his or her living space is safe and comfortable, don’t forget to review your insurance coverage so   …Continue Reading Why Parents & Guardians of College Students Should Review Insurance Policies Before Move-In Day