It looks like Netflix could seeking to increase its streaming customer base (and lead over competitors) by offering one-time discounts to subscribers who use the company’s streaming service. The Motley Fool has run an interesting piece reporting that mere days after the author received his disc enabling the use of Netflix streaming on his Nintendo Wii, Netflix sent an email with a one-time 10% discount.
While 10% off of one month of Netflix’s pricing plans (the most popular of which cost less than $20 per month) may not be a large discount, the Fool conjectures that it’s all about encouraging subscribers to stream films rather than receive discs. By cutting out the costs associated with by-mail DVD service such as postage, inventory, handling, etc., Netflix can earn higher margins from subscribers, the Fool postulates.
Furthermore, with the unlimited streaming playing field mostly to itself, Netflix could be attempting to build an insurmountable lead over potential competitors such as Redbox, Amazon, Apple, etc.
Recent trends in Netflix’s advertising and website layout would seem to support the Fool‘s theory. The streaming option is now promoted as the primary method of delivery, with the by-mail service being positioned as a bonus for subscribers.
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Netflixing Insiders, do you find yourself streaming more than getting discs by mail, despite the smaller selection? Will this strategy pay off for Netflix? Tell us what you think in the comments.
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(via The Motley Fool)
when i cancelled last night they offered me 2 months at 25% off…. told them even at that price it wouldnt be worth stay within alll new releases getting 28 day delays
Sounds like a lot of speculation based off one guy on the internet getting a coupon. Come back when you have some real evidence of a pattern.
I’ve had the Netflix/Wii streaming for about a week now. Not sure why, but at least two to three times per movie it will stop and retrieve the signal, which takes anywhere from 2-5 minutes during the movie, not to mention it takes the same amount of time once you start a movie. This may be a kink that will eventually be worked out, but it does get annoying. The picture quality is acceptable, and the audio is passable.
I’ve been using the streaming on my Wii since I got the disk, and I’ve NEVER had the problem you’re describing. Picture quality and sound are just as good for me as dvd, with the exception of some fast moving scenes. (Granted, I don’t have an HD tv.) I’ve had the same disc at home unwatched for over a month. Love streaming, and I can’t wait ’til the selection is even greater.
I love the streaming option. I would love to just do streaming and forgo the mail option. I hate having to wait 30 days for most new releases. I will stay with Netflix because of the streaming-otherwise we would just do Redbox.
we’ve had streaming on xbox/ps3/and wii ….And we were never offered a discount despite using it extensively
streaming is ok, but the newer movies you can only get by mail.now if theyd let us stream those too, it would be awsome.
The Coupon is for real. I haven’t activated the Wii yet, but I continue to receive messages telling me about the 10% discount when I do. (This was not the case when I activated the PS3)
Screw this I’m canceling my Netflix account. I didn’t agree with a 28 delay and will not be paying for a service that won’t give me the movies I wanna see when they come out. They basically changing the terms on me so I’m canceling my account. Had trouble getting new releases from Netflix as it is. Looks like Netflix helped me make my decision quicker thanks a lot Netflix.
As long as streaming has an up-front cost for hardware, I probably will not stream. Netflix should offer a very inexpensive box. The price should be completely refunded if the subscriber continues to be a customer for 6 months or a year.
IFF they stream new releases and/or HD, then I’ll sign up. In the meantime I’m sticking to RedBox.
I understand the 28 day period. I could have accepted 14 days. Folks buy movies within the first week they come out.
I’ve use the Wii and have had very little problem with it. The video is pretty seamless, quality is better with a dedicated composite cable versus the one provided with the Wii. Having said that, the video is still not up to the dvd quality.
The selection is limited and with the lower video quality I will be sticking with dvd mail for the moment.
We have been using netflix for months now and they do offer a few new releases from time to time…. and we do supplement our lack of new releases with red box…