article imageNetflix Cuts Prices

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Jul 22, 2007 by  Paul Bright - 6 votes, 2 comments
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Netflix is the leading company in online movie rental, despite the competition from Blockbuster and Amazon's new program. Now Netflix has made the deal even sweeter for existing and soon-to-be new customers.
As if you weren’t already getting a good deal, Netflix’ announces plans to reduce the current subscription price on two of its movie rental programs. Customers will now be able to watch more movies for less. Those on the $9.99 a month plan will now pay $8.99; people on the $17.99 per month plan will only pay $16.99.
Netflix is the largest online movie rental company in the world. With over 6 million subscribers, Netflix offers the service of delivering DVDs to your home mailbox with the ability to return the movies the same way. You can choose from over 80,000 titles of movies, TV series, concerts, instructional videos and the like. The plans are structured to where you can rent an unlimited amount of movies per month but are only allowed to keep a certain amount at home.
Originally, Netflix had charged $5.99 per month for users to keep one movie at home, 2 movies per month. That plan was dropped to $4.99, along with the two-at a time unlimited that was $14.99 but is now $13.99. Overall there are nine plans for subscribers to choose from, without penalty for switching and no contractual commitments. Members simply send back the movies by packaging the DVD in the Netflix envelope it came in and dropping it off in the mailbox with no additional postage cost.
Netflix also offers online viewing of movies. The list is limited and does not include every title in the Netflix catalog but is increasing in numbers every day, currently up to 2,000. Subscribers get one hour of viewing per dollar spend per month on a plan. In other words, those on the $16.99 plan get 17 hours per month of viewing movies online.
Another popular feature of Netflix is the queuing system. Netflix users don’t have to wait for movies to get back in order to make their next selection. Users can get online and select which movies they want delivered next and in which order through the queue system.
It’s hard to believe, but Netflix has been around for a decade and still continues to lead the online movie rental industry today, according to founder, chairman and CEO Reed Hastings.
"Netflix remains the best movie rental experience on the internet," he said in a press release. "Netflix pioneered the online movie rental industry ten years ago and remains its leader by offering convenience, selection and value. Today, value got a boost."
Netflix has been the number one rated Web site for customer satisfaction for five consecutive ForeSee/FGI surveys since 2005.
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