If Netflix really wanted to convert people to stand-alone streaming and not piss them off, it should have dropped the price of streaming in conjunction with its latest announcement. The existing stand-alone streaming price, which debuted last November, was $7.99, and a simple $1 price drop to that plan would entice many current consumers who are resistant to being pushed onto a streaming-only plan.
In other words, I tend to think Netflix has a problem on its hands, even though many think Netflix users are just letting off steam in the wake of recent price hikes and won’t actually cancel. Most subscribers consume a lot of their content through streaming, but they also want some backup in the form of a much bigger DVD library, be it through Netflix, Blockbuster or Redbox (or all three).
What do you think? Would you be more likely to accept a forced transition to streaming-only if Netflix offered a price decrease in the stand-alone plan?
Read more about Netflix’s mistake and what it should do about it in my weekly update at GigaOM Pro.