Netflix Sux!! (or does it?)
Welcome to Tony Island Blog! As you may have heard by now, Netflix, the DVD rental-by-mail company, has decided to restructure its pricing plans to separate the DVD rentals from the streaming option. Previously, for as low as $9.99/month, you were able to have unlimited DVD rental (though only one home at a time) and unlimited streaming. Now, starting in September, 2011 for current members (immediately for new members), the unlimited 1 DVD plan is $7.99/month and the unlimited streaming is $7.99/month. Together, it will be $15.98. This is a rather large jump to say the least. The increase caused thousands of subscribers to flood the Netflix blog with feedback - much of it against the pricing changes along with threats to cancel memberships. I'll take a different viewpoint though (don't I always?) - I think it makes a lot of business sense to do this. By separating the income streams for DVDs and unlimited streaming, Netflix will have the cash flow needed to bet...