Netflix has pricing power as streaming overtakes DVD rentals

Summary:Netflix revamped its subscription rates and introduced a $7.99 a month streaming-only plan. In addition, the company raised its base DVD rental service to $9.99 a month, up $1.

Netflix revamped its subscription rates and introduced a $7.99 a month streaming-only plan. In addition, the company raised its base DVD rental services to $9.99 a month, up $1.

The move highlights a few key points (statement, blog):

  • Netflix has pricing power to raise DVD rates.
  • Netflix is "primarily a streaming video company."
  • The company is betting that most customers will go streaming only and that will save some serious costs on all sides of the equation.

Here's the breakdown of pricing:

The pricing starts in January for existing members. Netflix has done a masterful job of managing the physical DVD rental to streaming transition.

Topics: Mobility, Hardware

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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