Dave's Download

Netflix Stream-Only Subs Could Foretell Fees for Everyone

By David LaGesse

Posted: February 26, 2009

Netflix is likely to offer streaming subscriptions soon that would be separate from its disk-based subs. The new plan would have to be ultra cheap to compete with Netflix's other offerings, says Brennon Slattery at PCWorld:

...is a stand-alone streaming option worth it? Only if it's cheap. For $15 a month, you can get two movies simultaneously with unlimited reloads and the streaming service. If Netflix offers streaming alone for $5 a month, I think it'd be worth the dough. Otherwise users might as well stick with the slightly more expensive plans that have everything included.

I worry it's the first step toward Netflix charging all of us for the streaming service. Analysts have complained the company is investing too much in the streaming service without generating new revenue.

Netflix has treated streaming as an added value to attract and retain subscribers. But at our house, we like and use the streaming service so much that we cut our sub from three to two disks at-a-time, shaving our monthly fee by $3.

Netflix has locked in our loyalty. But it's also cost them a few bucks.

Investment Paying Off

True Netflix has invested heavily in streaming video, but look at their 4th quarter earnings. With the addition of Xbox and the new line of higher end televisons coming on board, I see a bright future for them. Perhaps 6.99 will be the pricepoint for unlimited streaming on one ready device and up to 4 computers.

Octavian III of WA @ Feb 27, 2009 19:09:00 PM

Bandwidth

As more people stream the Netflix bandwidth cost will go way up, and everyone will end up getting charged. I don't like the service right now anyways, not enough quality or selection. I went with VUDU instead and I like it.

I think Netflix has a long way to go before they enter the streaming game.

TJ of IN @ Feb 27, 2009 17:21:13 PM

ISP's may be a threat to Netflix''s streaming plan

Many ISP's are looking to impose download caps on subscribers.

They already throttle bandwidth speed which to me is fine, most people can get by quite fine at the speeds cable and DSL operate at.

However, if you use the internet for surfing for news, on line gaming and want to use Netflix's new streaming service a family is going use hit these download data caps pretty quickly and will either be cut off or pay higher ISP charges on top of Netflix's resonable fees. The combination may very well be enough to stifle this excellent service from Netflix and future growth in this type of service from others.

Scott of NY @ Feb 27, 2009 11:10:16 AM

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Dave's Download

Our in-house gadget guru, Senior Writer David LaGesse, checks out the latest technologies and gizmos, from computer software to GPS systems -- and reports back to you in plain English.


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