Talking tech since 2003

Netflix announced a change in its pricing structure yesterday, which has seemingly upset many of its customers.  However, I think this change in pricing will cause an effect that is exactly what Netflix wants to happen.  It’s no secret that Netflix wants people to switch over to its instant streaming service, it’s cheaper for them.  And now, people will be faced with a choice.  Either pay more for both DVD’s and streaming content or pick one over the other.  If I were a betting man, I’d bet that most people will pick streaming only over any of the other choices.

But it’s not just a bet.  I think this will happen for a couple of reasons and I think Netflix is thinking along the same lines.  The first reason being that Netflix’s streaming media library is growing, they have been adding new content consistently for a while now and I don’t see that slowing down.  The second being, streaming media is now so easy to get on the TV.  Netflix has done an amazing job with partnerships and getting themselves on so many different entertainment platforms (e.g. Apple TV, XBOX, Roku, and Boxee Box).  People don’t need to rely on DVD’s nearly as much (if at all) anymore.

Additionally, after briefly looking at a survey put up by Tom Anderson on Google+ it seems like a lot of people (so far) are willing to drop DVD’s in favor of streaming content.  I personally am already subscribed to only streaming content and I’m happy with the selection of content available.  Sure, sometimes I run across something that’s only available on DVD that I wanted to watch, but in that case I’ll just go to iTunes.  Most of the time, Netflix has served my needs and I like the fact that it’s completely instant.  There’s no waiting for a DVD to come in the mail.

In the end, I expect this move to work out well for Netflix.  What do you think?

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