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Monday, November 22, 2010
Netflix raising prices Starting in Jan. 2011 - New Customers Immediately
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Netflix expects video streaming to drown out DVDs
Netflix is preparing for the day when getting DVDs by mail is as old-fashioned as going to the video store.
It's hoping to wean people from DVDs with a cheap plan that offers movies and old TV episodes exclusively through online streaming. It will cost $8 per month, matching a recent price cut by rival Hulu.
Most analysts expect the streaming-only plan to appeal to younger subscribers, especially those who have signed up for Netflix in the past couple years as the service became available through video game consoles. To them, the new price will probably seem like a bargain: Netflix had been charging $9 per month for the lowest-priced plan that included unlimited video streaming.
The monthly rates on Netflix's three most popular rental plans will rise $1 to $3, depending on the plan. They will be $10, $15 and $20, depending on how many DVDs the subscriber is allowed to have out at once.
The changes announced Monday are Netflix's latest step to ensure it doesn't repeat the same mistakes of Blockbuster Inc., a once-ubiquitous video store chain that didn't adapt quickly enough to technological change and went bankrupt.
Netflix says its 17 million subscribers watch more hours of Internet-streamed video each month than they do on the DVDs they get through the mail.
Even so, Netflix remains a major buyer of DVDs because most of its subscribers still want the discs. That way they can watch the latest movie releases that aren't available for streaming.. Click Here for more info.
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Poor Richard 2011
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11/22/2010 04:55:00 PM
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