reDesign

October 30, 2010

Netflix throws away the disc in the US

Filed under: netflix, television — Rakesh Agrawal @ 9:21 pm

Netflix is edging a step closer to its name with a test of streaming only service in the United States. The new offering allows users to purchase a net-only subscription for $7.99 a month. Adding DVD rentals is an option for an additional $2.00. This represents a $1.00 price increase from recent offers of $8.99 for unlimited streaming and unlimited DVD rentals with 1 DVD out at a time.

The online selection still lags its DVD catalog. That’s unlikely to change in the near future.

Netflix has been de-emphasizing DVDs lately. For good reason: streaming is much cheaper than postage. It costs roughly 5 cents to stream a movie vs. close to $1 per DVD rental. It has put a substantial emphasis on streaming, with Netflix capabilities embedded into dozens of devices, including Apple TV, Google TV, blu-ray players, iPads, iPhones, TVs and game consoles.

The company also recently entered the Canadian market with a CDN$7.99 streaming only plan with no option for DVDs.

H/T: Andrew Cooke on Quora

Netflix streaming only offer

Netflix streaming only offer

About these ads

2 Comments »

  1. [...] Aggressive A/B testing. Netflix A/B tests everything, including pricing, features and user interface. I wrote about a Netflix test of its streaming only pricing before it was released as a new product. [...]

    Pingback by Why Netflix is killing it — and what startups can learn from its success « reDesign — May 22, 2011 @ 3:33 pm

  2. Don’t neglect the factors you as quickly when you owned. Treasure the factors you cannot get. Don’t quit the factors that belong for you and retain people lost factors in memory. gss3w43s%6

    Comment by new era snapback — January 10, 2012 @ 8:47 pm


RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

The Silver is the New Black Theme. Create a free website or blog at WordPress.com.

Follow

Get every new post delivered to your Inbox.

Join 134 other followers

%d bloggers like this: