The Netflix price hike has seen an outpouring of outrage by irate users complaining about the 60 percent price rise in video service, but Forbes reports how it’s a boon to the subscribers.
From now the users will have to pay $7.99 and $11.99 for one and two DVDs out-at-time plan. However, the streaming feature will not be changed from the current $7.99.
Jessie Becker, VP of Netflix wrote in a company blog post, “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.”
Over the years what is happening is that people have been requesting fewer DVDs from Netflix spending more money than what they would have spent renting movies from a rental store.
Rental Stores charges late fees and Netflix charges more money to rent DVDs by mail; it’s time to move to Redbox. With Redbox you get what you want now, at a cheaper rate even if you keep it for an extra day.
It’s a great time to realize that Netflix is to stream content that we want now. For immediate access to DVDs we want, Redbox has filled the niche followed by other competitors like Blockbuster.