2011
Why Netflix Just Made Me A Redbox Customer
Earlier this morning Engadget posted a story about a possible price increase coming to Netflix this week that started a bit of a stir online. Hours later Netflix broke the news on their blog and soon after updated pricing on their website too. The prices are effective immediately for new customers, and starting after September 1st for existing customers. You can see the new pricing below:
What Netflix is doing is basically making their DVD and Streaming business into two different services with an equal cost. For users who are on their newer DVD or steaming only plans, there is no change. But for those customers, like me, who are on the legacy DVD plans that had included free streaming, there is a significant price increase. My plan which includes Blu-rays is changing from $12/mo to $18/mo, that’s a 50% price increase for nothing new!
I’ve been using Netflix on and off since their launch. Over the past few years I’ve started to use the streaming service the most and considered the discs as an extra perk. I knew about Redbox and never found a use for the service since Netflix was more valuable in my eyes. That is no longer the case.
My big problem with this is not the money, but rather the value of the service. Netflix knows how often I do NOT rent discs anymore. I have rented 17 discs in the last 7 months, that’s less than 3 discs a month. Twice this year I let a disc sit around for two weeks as well before I found time to watch it. When I was paying only $4 more for DVDs and Blu-rays over the $8 streaming plan, that made a lot of sense. But now they just increased that extra cost to $10 extra a month. Renting on average 3 Blu-ray discs a month from Netflix isn’t worth it anymore. I’ll be dropping down to Unlimited Streaming Only before the price change takes effect in September. Which means that’s $4 a month Netflix won’t be getting from this customer, and many others as well who will be doing the same from the sounds of it.
By switching to renting discs from Redbox I’ll likely save myself $75 a year. Instead of paying $10/mo extra to rent DVD and Blu-ray discs at my convenience from Netflix, I will instead pay $1.50 a night to rent a Blu-ray whenever I want to from Redbox. If I keep up with my average of 3 a month, I’ll be paying $4.50 a month in rental charges as long as I return them each night. Sure Redbox has less selection and late fees. The selection doesn’t matter to me because I’m usually renting new Blu-ray releases not available to Stream from Netflix. Redbox offers the same discs with the same 30 day delay that Netflix has, so no major loss there. I will likely rent far less than 3 a month now and instead just get a disc the day I want to watch it.
Redbox also became more attractive recently by adding video games to their boxes. I used to rent some games from my local Blockbuster, which is long since closed. Redbox just filled that void with closer locations and better pricing if I just want to try a game out or if I need an extra disc for a multiplayer game when I have friends over.
The other reason the Netflix DVD queue is less attactive to me going forward is also because Netflix is removing the DVD Queue from their public API in October. This means you can’t add movies to your DVD Queue from Netflix enabled apps. This means the app I developed, Leonard Maltin Movie Guide, or BitBQ’s excellent QueueUp Netflix app will have this one feature completely removed. Instead you will have to use their website to manage and update your DVD queue, thusly hobbling the service.
This would be a great time for Redbox to step up and offer a public API for their disc rental service that apps can tie into. Or a even a hook into launching their mobile apps for a specific title. Anyone from Redbox or Coinstar listening out there?
