Netflix Agrees With The Doctor!

OK, not quite what the headline says… it is just that in a recent post I said that we were heading toward ubiquitous Wi-Fi and that would lead to handheld devices that we would get streamed video on. And Netflix is coming out with streamed only account content.

Netflix foretells the future of content distribution with new streaming-only plan

“Netflix today announced a revision to its subscription tiers that simultaneously increased the price of its DVD-by-mail plans, and introduced a new bottom-tier plan solely for streaming TV and movies.

Similar to the streaming-only plan Netflix launched in Canada in September, Netflix subscribers will pay $7.99 a month for unlimited access to the Netflix Instant Streaming library. Previously, the cheapest plan cost $8.99 per month and included one-at-a-time DVD rentals as well.

That plan has now been bumped up to $9.99, and the two-DVDs-at a time plan has gone from $13.99 to $14.99. As the number of DVDs included in the plan rises, so too does the price increase. Netflix has tiers going all the way up to eight DVDs at a time, and that has risen from $47.99 to $55.99.

The introduction of the new streaming-only plan highlights a major shift in user behavior. In short, there are no DVD-only plans, but there is now a plan that involves no DVDs at all. Streaming has graduated from a companion service to one that can stand on its own.

‘The fact is that Netflix members are already watching more TV episodes and movies streamed instantly over the Internet than on DVDs, and we expect that trend to continue,’ Jessie Becker, Vice President of Marketing at Netflix said today.

The next big question is whether Netflix will graduate from being a complement to pay TV subscriptions to a real ‘cable cutting’ solution.”

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