Netflix has announced a streaming-only plan ($7.99), as well as an increase in every other plan they offer (+$1 up to $9.99 for the 1 disc monthly plan, for example).
Streaming is awesome. Moreso on iPads/iPhones, like when I’m at the gym and I’m tired of listening to music all the time, I’ll load up a movie to watch. However, the streaming-only plan would be more attractive if:
- Hulu didn’t exist for TV shows
- Netflix had a larger selection of movies to stream, and worked out that license issue to have movies and TV shows more immediately
With high-speed online access now becoming a household staple and various gadgets making it easier to connect high-definition TVs to the Web, Netflix is realizing it needs to evolve as Internet streaming goes mainstream. “We are now primarily a streaming video company,” co-founder and CEO Reed Hastings said in a statement. Netflix is spending heavily to obtain the streaming rights to more movies and TV shows to help lure more customers and shift more of its existing subscribers away from DVDs.
In the third quarter, Netflix spent $115 million on video streaming rights, up from just $10 million at the same time last year. Spending on DVDs dropped 35 percent from a year ago to just under $30 million in the third quarter.