Monday, November 22, 2010

Netflix finally offering Instant Watch only plan

Well it makes sense that a company that has "net" in the title would finally begin to offer a "internet streaming" only plan.  This new announcement is a great thing moving foward for digital media and the masses ability to watch TV shows and movie over the internet or on their digital player.

The "Instant Watch only" plan is at a low price of $7.99 which is at the same price point as Hulu plus.  If there was ever a reason to cut the cable cord and go purely through the internet now is the time.  Hulu plus has all of the most recent shows the day after they premiere on TV and Netflix has the movies and some TV shows.

The downside of cutting the cord now unfortunately is there really isn't a viable Sports viewing service that covers all live sports.  ESPN3 is good but it only covers sports that ESPN covers plus whether you are eligible to watch or use the service is predicated on your internet provider.  I have Uverse so it works for me, but those with Time Warner have problems viewing ESPN3.  And in some instances you have to have actual Television service and internet service to use ESPN3 which somewhat defeats the purpose of using ESPN3 in the first place.

Getting back to the point of this blog post...

Netflix is now offering Instant Watch only plan; this is big news and hopefully is the first step in the much bigger plan of having a primary digital watching service that no longer relies on mail but on the Net.

Below is the announcement from Netflix about the addition of this new plan.

You'll also note that all other plans are featuring an increase in price.  It is my guess that Netflix has two plans in doing this.

1.) Since most members of the netflix community still watch DVDs they need additional capital to allow for further growth in the instant watch market while still allowing their great mail service.

2.) They are hoping members start to drop the DVD plans and switch digitally thus saving money on shipping facilities, employees, and mailing fees allowing more capital to be re-allocated to streaming.

Do you see the pattern and where Netflix is headed?  I don't know about all of you but I am excited.

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