Netflix dropped a serious bomb on customers today, ultimately revealing a new pricing strategy. Possessing over 120,000 DVD and Blu-ray titles, the all-you-can-watch company looks to squeeze the life out of the wallets of their consumers who choose to rent optical discs instead of stream through a TV or Sony PlayStation 3 device.
Netflix is to-date the best brand in the business. With several competitors in the social streaming market, such as Hulu Plus, Netflix's new subscription rates have been separated into their own tiers. It used to cost $9.99 to get one DVD at a time and unlimited streaming videos.
Today it was announced that those customers will now be forced to pay $7.99 to enjoy either or...streaming or one disc at a time. Having the option to utilize both services will cost you approximately $16 a month. Not too expensive, especially for customers who use the service as a cable alternative, however the verdict is still out as far as how this "sudden" change will affect the catalogue of movies available via the physical (DVD and Blu-Ray discs via snail mail) and non-physical (streaming) methods of delivery.
Netflix should watch their moves and profit strategy closely, as video streaming competing companies, such as Zediva make major moves in the right direction by offering deals like a two-week digi-streaming of new release rentals at $2 per. I look for this to be an interesting development. How do you Netflix users feel about the move???
SCREAM @ ME!!!
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