Should Netflix have dropped prices on streaming-only plans?


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.


Scott Jensen

This is “article” is nothing other than an advertisement for your paid site. :-P


Keep in mind that Netflicks, or anyone selling or renting copyrighted material, must adhere to their licensing agreement. The licenses might authorize a range of remuneration to the copyright holder, meaning that lowering the fee could adversely affect their ability to make money. Fun stuff to be sure

Cheers !

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