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Netflix loses favor with consumers

Following the news of pricing changes, Netflix has taken a sharp hit in favor among consumers, falling from the top spot to the bottom spot among video rental services.



Netflix was the undisputed leader in positive consumer perception with a Buzz score of 39.1 on July 12, compared to the next ranked score of 12.6 by Redbox. After the pricing changes, Netflix dropped to -14.1, and is now at -6. This is a statistical tie with Blockbuster.

Redbox moved up in favor, increasing to 21.3.

For more information, visit Huffington Post

The new Netflix plans

Netflix’s new pricing structure isn’t making anyone happy. One example of how bad the plans are is the inability to pair a streaming account with a limited DVD plan (2 DVDs per month). But here’s the list of all of the new plans.

First, I want to highlight a limited plan that some might be interested in: Starz Play Only (no DVDs). For $6.99 a month, you get unlimited streaming of the Starz Play TV channel. Starz is the largest supplier of streaming content for Netflix, including the Starz original series shows, and a lot of new and catalog movies. If you see a Disney or Pixar movie on Netflix, it’s probably from Starz.

The 1 DVD out at a time (limit 2 rentals a month) is $4.99. This has instant streaming, but only 2 hours worth per month (sorry, Seven Samurais, you’re too long to watch completely), and only on PC or Mac. No Netflix devices or TVs can play these streams.

The Unlimited streaming plan is $7.99 per month. Streams to PC, Mac, Netflix device or TV.

Unlimited DVD plans with no streaming are available as follows:

• 1 DVD out at-a-time – $7.99
• 2 DVD out at-a-time – $11.99
• 3 DVD out at-a-time – $15.99
• 4 DVD out at-a-time – $21.99
• 5 DVD out at-a-time – $27.99
• 6 DVD out at-a-time – $32.99
• 7 DVD out at-a-time – $37.99
• 8 DVD out at-a-time – $43.99

Unlimited DVD plans with streaming to PC, Mac, devices and TV are available as follows:

• Unlimited Streaming + 1 DVD out at-a-time – $15.98
• Unlimited Streaming + 2 DVD out at-a-time – $19.98
• Unlimited Streaming + 2 DVD out at-a-time – $23.98
• Unlimited Streaming + 2 DVD out at-a-time – $29.98
• Unlimited Streaming + 2 DVD out at-a-time – $35.98
• Unlimited Streaming + 2 DVD out at-a-time – $40.98
• Unlimited Streaming + 2 DVD out at-a-time – $45.98
• Unlimited Streaming + 2 DVD out at-a-time – $51.98

There are no bundle discounts!

Netflix raises prices

Netflix announced today a new pricing structure for plans to separate disc delivery and instant streaming. In essence, the price has doubled for their most basic subscription service as a result.

Netflix is presenting the change as offering their customers choices, but in reality it is just raising prices on an already profitable business plan. They write, “we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs.”

What’s wrong with making streaming a $2 add on to a DVD subscription? Why not a bundle price like every other subscription provider offers?

While I admit I don’t watch the disc movies as often as I had in the past, that’s mainly because the only optical disc player I have at the moment is in my computer. But most of Netflix’s catalog is still on disc, including everything from HBO. Doubling the price of the basic 1-disc subscription to add streaming just doesn’t make sense.

How does it satisfy customers who only wants discs to gouge their existing customers who want both?

Judging by the response to the announcement, nobody is happy with this. It seems like a $0.99 rental per movie from another service added on to the Netflix streaming will be the way a lot of people go … if only Redbox had a better selection.

I just don’t see how they will increase their business by alienating loyal customers. They even seem to realize this fact by ending the announcement by reminding everyone how to cancel their account.

Complete Netflix statement after the jump.
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