Netflix pushes US distribution for streaming Internet video and DVD on way out

As discussed in an  earlier post  Netflix  offering only streaming video  in global markets seems to be spreading to the US market and has outraged Netflix subscribers. Netflix wants subscribers to spend  about $16/month if they want both DVD and streaming- a 60% increase in contrast to paying $7.99/month for either service. A definite nudge to get subscribers to go streaming.Higher payments to movie studios for streaming rights is also a motivation for Netflix but I guess its more about changing the distribution model from the physical DVD to all streaming Internet video.

Seems unfair to Netflix subscribers – so used to the familiar Netflix mailer containing the DVD. Among all those junk mails and bills the Netflix envelope does tend to cheer you up. You selected the movie, perhaps agonized over your choice and now its great to actually receive it while  getting  a welcome US mail package in the bargain. Subscribers are cut up about the timing of the price increase given the slow economy.

Netflix subscribers are heavy Internet users ( they rent  movies on-line after all) and the backlash had to be well …

But Netflix had to start this push to  "all streaming"  sometime in the US market. This is among the first publicized cases of a US company going global first and then local in the US. Given the large and vocal backlash from US customers we can accept some sweetening of the deal for the  DVD and streaming combo price. But if you are a US Netflix user it's time to get used to movies via streaming Internet video because that's the way it's headed. More on Netflix.

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