Netflix Raises Prices

I just received an email from Netflix that says they are changing my current plan ($9.99 for 1 DVD out at a time plus unlimited streaming) by splitting it into two plans ($7.99 for unlimited streaming only and $7.99 for 1 DVD out at a time only). I can get either of the new plans or both plans for the new price of $15.98.

So basically I have to choose between a service that is too slow (DVD only) or a service without a lot of selection (streaming only). Horrible choices, especially for a company that next year will probably be raising their prices considerably as well as losing a lot of their current selection.

There is a lot of talk about what it will take for Netflix to no longer be the 800 pound gorilla of the streaming industry. I think this may be the first step. Google and Amazon are starting to get serious about competing in this space. Hulu is up for sale and whoever buys them immediately becomes a player. The studios are starting to realize the amount of money that can be made. TV networks are offering more shows on their sites. Cable companies are starting to offer streaming. This is a very volatile time and I’m not sure if Netflix is making themselves stronger to withstand everything that is coming or if they have put the first nail in their coffin themselves.

As for me, I have a decision to make.


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