Netflix Announces New Pricing Structure

Netflix announced today a new pricing structure that is sure to turn some of their customer base away from having a combination plan. Effective immediately for new subscribers, users can have one DVD out at a time for $7.99, digital streaming for $7.99, or have both for $15.99 per month. To put it into perspective, customers can currently get both for $9.99 a month plus tax. That’s roughly a 60% increase! For existing subscribers, you have until September 1st before the new structure goes into place.

Why is Netflix doing this? While the streaming collection on Netflix continues to grow, it seems as if it doesn’t make financial sense to offer both services at a discounted rate. The current pricing structure went into effect not even a year ago, and it appears as if they aren’t making as much money as they would if they offered them separately.

In my opinion–this kinda sucks for Netflix customers, and probably Netflix themselves, too. The customer database is probably in the process of deciding which service is better (I’ll likely be going streaming only). Netflix probably won’t see as many people utilizing both services as much as they’d probably like, and we may head towards cheaper pricing again as a result. I think the ultimate goal here is to expand their streaming collection and get more people to stream. I guess only time will tell.