As a business owner I am all for any business' attempt to build new revenue streams. However, this time, in their attempt to do just that, I think Netflix has erred. Today in my email box I received notice that on the heels of a recent price increase, as of Sept 1st, they will be separating their DVD & streaming plans into two different plans & each will be charged the same price-$7.99. If a consumer wants both, the charge will then be 15.98 [representing a 2 cent savings]. These plans are being charged as equal plans when they are not & it's not even close. Why? The product that each offers is by no means equal. In the CD plan, you get most first run movies & everything else in the Netflix library; of course the catch is that you have to wait for the CD to arrive. That is the essential beauty of streaming movies; not only is there no wait but you can view your movie on a number of different modalities: computer, TV, Sling box, tablet & smartphone I will concede that one might argue that they are equal delivery plans. If that's true, "where's the rub?"
Separate BUT Not Equal
The problem however lies in the product that they are delivering. As things currently stand Netflix is not capable of delivering the same movies [to be fair this is not the fault of Netflix but has to do with copyright laws]. The net result is that while on CD you get near first run movies & everything else in the Netflix library, as a streaming only customer, you will get an occasional recent movie but mostly a lot of older, & less popular movies [& TV] desperate for new revenue streams themselves. While both systems can deliver popular TV shows [particularly popular cable TV shows], once again in order to be guaranteed access to all of them in a timely manner, CD delivery is the only realistic option. Another problem is that once there, movies don't always stay in the streaming library; sometimes they revert back to the CD only library.
If It's Not Broke Don't Fix It
If the reality is that Netflix feels the need to charge more for their current service that is one thing. However, they are mistakenly trying to create an illusion of greater options when their new policy is neither neutral or minor but one of subtraction. Unless Netflix is now truly capable of leveling the product playing field when it comes to both delivery systems, separating the two is at least premature & at worst a mistake. The old adage used and applied just about everywhere works well here: "if it's not broke, don't fix it!"
