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UPDATE: Netflix Sees 1M Fewer Members Following Price Rise - WSJ.com
I think I know what Netflix is trying to do. It costs them way more money to handle the physical DVD, so by splitting the DVD and the Streaming plans they are able to subtly focus people on the streaming service.
The initial backlash seems to indicate that their plan is working. They expect to be down nearly 1 million subscriptions (4%) and most of that is DVD subscriptions.
However the problem is the content gap between what’s available on streaming and what’s available on DVD. The streaming service just doesn’t have the depth of content, so when people like me who kept the streaming service but ditched the DVD delivery hit that content wall, then the downward spiral begins.
Oh and in case you missed the news earlier in the month, Stars is pulling the Stars Play content out of netflix early next year too.
Hopefully Netflix has something in mind, some plan to rapidly expand the streaming service, otherwise they will be leaving the door open to Amazon, Hulu, and other would be streaming TV and Movie competitors.
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