Netflix DVD Rental and Streaming Officially Separated
Netflix in another step toward solidifying streaming media as the core of its business has officially separated DVD Rental and Netflix Streaming media plans. For current customers, you won’t see this change until September 1st of this year. However, new customers will see this change immediately with the option of $7.99 streaming and additional $7.99 for DVD rentals (1 DVD at a time) or $15.98 for both. Previously, Netflix customers enjoyed plans such as $7.99 for streaming with an additional $2 to rent one DVD at time. You’ll notice in the screenshot below that streaming is your default service with DVD rentals only as an option.
This price hike has upset many of the current Netflix customers who have liberally expressed their disdain for this maneuver on the Netflix blog site as well as other social media sites. With this change, it’s evident that Netflix is comfortable enough with both services in order to separate them which makes it more obvious that DVD’s are on their way out to take their place in legacy land. Netflix CEO Reed Hastings explained to TechCrunch Co-Editor Erick Schonfeld back in May that “Streaming is the core of our business and it is growing rapidly.” he said…
“Streaming is much bigger than DVD for us in terms of hours of viewing, growth, and focus. We are seeing massive consumer adoption of streaming.”
As streaming media becomes more and more popular, rising concerns of internet pricing and bandwidth availability become a larger issue as your home system integration’s demands on download/upload increase. Issues such as the one expressed by Andre Vrignaud to writes for Kotaku.com will become more prevalent in which he was “cut off” from Comcast internet services for a year for exceeding bandwidth constraints twice with no chance for appeal.
With streaming movies seemingly becoming the future of entertainment, it seems necessary for internet service providers (ISP’s) to revisit their bandwidth caps. Currently, Comcast’s data cap policy is 250 Gigabytes which in the past was plenty of room to move pretty carefree. Times are changing and the question I have is; “how many cases of consumers exceeding bandwidth constraints will Comcast go through before considering a policy change?” and “Will services such as Google TV, Boxee and Netflix put enough pressure on ISP’s to lift or at least adjust their data cap policies before it gets ugly?”
Thanks Brian Stelter (nytimes.com), Erick Shconfeld (TechCrunch) and Andre Vrignaud for supporting articles!