June 27, 2022

Netflix Rolls Out New Subscription Plan

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Netflix is looking to meet customer demand by offering a subscription option for streaming only video delivery

Netflix Inc. (Nasdaq: NFLX) unveiled a new plan today offering streaming only to customers for $7.99 a month. The new plan is a deviation from it’s previous offerings and doesn’t include any DVD by mail options the service has been known for.

Having pioneered the online video rental model, Netflix has enjoyed great success and growth over the last few years while traditional store rivals like Hollywood and Blockbuster have taken hard hits. The online rental giant started experimenting with streaming offerings a few years ago and has started to expand the availability of titles significantly in the last year.

The streaming only plan takes advantage of the company’s recently signed deals with content providers such as NBC Universal. Netflix reported that more content is being watched online, via streaming, by members than being watched on DVDs delivered through it’s mail service.

This has led to increased profits as new subscribers come online with the service. The timing is critical with strong rivals vying for customers through DVD kiosks and new digital players. Netflix has to stay ahead of the game, offering new features and convenience options to attract, as well as maintain, customers.

Along with the new streaming only subscription plan, Netflix’s other subscription plans will see price increases from one dollar to as much as five dollars. The price increases will take effect immediately for those new to the Netflix service, while existing customers won’t get hit with the updated pricing until January.