I just cancelled our Netflix instant streaming service because we have Amazon Prime which gives us streaming for free. Our main requirement is easy access to episodes of Pingu and Amazon carries these and also all the movies on my Netflix queue. No brainer. I wanted to switch to the DVD by mail service to get hold of all the movies that Amazon and Netflix streaming do not carry. But it turns out you can only add DVD by mail to your streaming service and cannot get it as a stand alone product. What is Netflix doing?
It seems Reed Hastings thinks streaming is the wave of the future and the DVD is old defunct technology, So, he wants to incentivize the switch (he even tried to spin off the DVD service as a separate business). But the range of movies Netflix streaming carries is not comprehensive. For example, I wanted to watch The Social Network but couldn’t find it in the streaming service. Then, my options are to drive to the video rental store or try to find it on HBO or pay per view. I prefer DVD by mail to those options. For instant streaming there is competition not only from Amazon Prime but an old streaming technology – TV! Plus there are lots of TV shows available for free in the On Demand options. Also, when had DVD by mail I would often leave the DVD sitting for weeks without watching it thereby guaranteeing Netflix a revenue stream with minimal impact on costs.
So, I think the old technology DVD has some legs yet. Movie studios like them because they have more control over pricing and can cut out the Comcast/Netflix middleman. And DVD by mail is Netflix’s most profitable business. So, while raising Netflix prices might have been a good idea with the decline of Blockbuster, the switch to streaming IMHO was not a good strategy. Maybe some Netflix insiders have a good rationalization for their strategy that I am missing?
Cheap Talk 
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April 25, 2012 at 9:38 am
Steven
“But it turns out you can only add DVD by mail to your streaming service and cannot get it as a stand alone product.”
This isn’t right — I have a DVD-only Netflix plan, and when I log into my account, I see that they currently offer me three DVD-only plans. One-at-a-time for $7.99/month, two-at-a-time for $11.99/month, and one-at-a-time (limit two per month) for $4.99/month. Perhaps they’re engaging in some form of discrimination? If you’ve had a streaming-only plan, they won’t offer you DVD-only plans?
April 25, 2012 at 9:58 am
Sandeep Baliga
I may have to delete my cookies but when I log on they only offer me a dvd add on plan. Here is what I see from their FAQ:
Can I get DVDs by mail from Netflix?
Yes. During sign up, you can add unlimited DVDs (1 DVD out-at-a-time plan) for only $7.99 more a month. With DVDs by mail, you’ll get an even broader selection of movies & TV episodes. You can exchange each DVD as often as you want with no due dates or late fees — ever! You can add access to Blu-ray discs to your account at any time for an additional $2 a month.
I think you were grandfathered into a pure dvd plan but new sign ups and can only addon.
April 25, 2012 at 9:46 am
jgawne
something is going on. In the past month I have had THREE disks arrive broken. This is very unusual as I’ve had efflux from almost the very start and with any luck this is an abnormality. I just wonder if either they are more lax now they’ve let some of their staff go and may be trying to shift people away from DVD’s, or if the post office is more lax with their attempts to cut corners, or possibly both.
I wish I could dump netflix, but I just don’t have the time to do searches of all the different companies to see hwo they stand up in terms of selection (I wish someone would). And just one DVD out at a time is just painful.
April 25, 2012 at 10:09 am
Steven
Hmm…
It looks like Netflix discontinued DVD-only plans for new users last fall, only to bring them back in February. But they don’t market the plans, and try to hide the link. Try deleting your cookies, and use this URL: dvd.netflix.com.
H/T: http://seekingalpha.com/article/378991-netflix-brings-back-dvds-sort-of
April 25, 2012 at 10:56 am
Sandeep Baliga
Thanks! The article is great. I eventually found the DVD only site at dvd.netflix.com.
As you say they do not market the plan and hide the link which is a weird way to try to sell something!
April 25, 2012 at 4:40 pm
David
They jumped the gun on hard selling streaming plans. The content simply isn’t there. Perhaps they thought that they had significant-enough market power to force studios to give them more streamable content, but that plan has not worked well for them.
April 25, 2012 at 6:56 pm
db
I can empathize with the impulse to expand out of a sector that will surely decline eventually, but there is nothing on the horizon for the next 5 and maybe even10 years that surpasses the price/selection that Netflix can offer for disk by mail. The content owners are too dysfunctional to permit a great, comprehensive streaming service anytime soon. Disk by mail works because of the legal rules that limit copyright owner’s power over physical copies. Netflix should continue to ride the first sale doctrine to the bank, and be prepared to hang up its spurs once content owners get their act together.
November 30, 2012 at 3:42 am
Mustafacan
Answers1. I can honestly say I haven’t niotced this.2. There are two very common types of cd cases, the regular and the slim version. Both are made of a plastic that is very brittle, and over the years I’ve thrown away enormous amounts of broken cd cases. Also most cd-towers only take the regular kind of cases, and not the slim ones.There is one generally accepted case for distributing DVD:s and CD-games, the (somewhat larger) DVD case. They are all the same size and form, and have enough space for some documentation that isn’t a pain to get in and out of the case. The plastic is also generally much more durable. All in all I really hope that everyone sticks to the new case. I would naturally like it to take up less space, but I really hope no one launces a slim model that again won’t fit in to the dvd towers. Having PC games and software, PS2 games, DVD-movies all using the same case instead of having cardboard boxes for games and software, some other odd case for movies with a large book, and everything else in those brittle cd cases is far from my idea of a good solution.Now if only I could start buying custom collections of music on dvd:s
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