Netflix says it has added a DVD-only rental plan, costing as little as $7.99 a month. Frankly, I'm confused.
We thought that was what Netflix had done back in the summer of 2011, when it said that it was creating DVD-only and online-only options.
As one might recall, Netflix said it was creating a $7.99 a month "one DVD at a time" plan and $11.99 a month for a "two DVDs out at-a-time" plan. Other plans allow users to have larger numbers of discs out at any time.
But the new change seems to allow unlimited rentals at that price. In principle, the older $7.99 plan, allowing users to have one disc out at any time, also was unlimited.
Over the years, I have argued that Netflix was underestimated, in terms of its business strategy and execution. Since the summer of 2011, Netflix has suffered unusual gaffs.
I admit I'm confused. I thought Netflix had created this plan back in the summer of 2011. What is new here?
Netflix has been drop dead simple. But this is confusing.
Friday, February 17, 2012
Netflix Adds DVD-Only Unlimited $7.99 Plan. Huh?
Gary Kim has been a communications industry analyst and journalist for more than 30 years, covering the business impact of technology. These days he especially studies changing business models and strategies.He speaks frequently at conferences and spends quite a lot of time organizing conferences and content as well.
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