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Netflix Changes Pricing, Angering Many Subscribers

By July 13, 2011

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A current Netflix subscriber on the popular $9.99-a-month plan (which allows one DVD out at a time plus unlimited streaming) will soon have to pay a whopping 60 percent more to keep the same deal. That's because Netflix will no longer offer any single plan that combines DVDs by mail with streaming; subscribers who want both DVDs and streaming will have to sign up for two separate plans. Under Netflix's new pricing, subscribers can get one DVD out at a time (no streaming) for $7.99 or unlimited streaming (no DVDs) for $7.99 or both for $15.98 a month. The revised pricing scheme is already in effect for new subscribers, and continuing subscribers will be subject to it beginning September 1. A lot of existing Netflix subscribers are hopping mad, but so far Wall Street investors think the pricing change is a good move for the company, which appears to be transitioning from a DVD-by-mail operation to a streaming service.

Sources/Additional Reading: Netflix Blog, Netflix Press Release, The New York Times, Los Angeles Times, Forbes, PC World

Comments
July 13, 2011 at 4:57 pm
(1) Karen says:

I don’t care what Wall Street thinks. This is not the way to treat loyal customers. I will definately be going elsewhere.

Shame on you, Netflix.

February 29, 2012 at 9:52 pm
(2) Sean Ramirez says:

Hey folks, Could be the U.S. much far better off sticking with Syria’s Assad?

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