So I found out the other day that Netflix has announced that they will start charging a separate fee for their online streaming which is currently free. Needless to say I was extremely disappointed to find out this news. Like probably the majority of Netflix users, I watch the majority of content from them through their online streaming. Honestly why would anyone want to wait for a DVD to be mailed to them when the can just pick out a movie and watch it instantly whenever they want. Granted, if the majority of consumers that are getting content from Netflix are watching it online through streaming and watching even with a small group of 3 or 4 friends, then in the big picture that is a lot of potential money that they are loosing from a single subscription. Personally, I believe that the DVD (and maybe even the Blu-Ray) is going the way of the dinosaur and I have watched all but ONE Blockbuster store in my direct area go out of business. It's quite obvious that digital media is the way of the future, I think there's no doubt about that.
The big question is, once Netflix goes through with this how much will that affect their customer base. Sadly, I don't think it will very much at all. Because physical media is going down the drain Netflix has the stranglehold on online content as far as streaming movies. They have the monopoly on the market basicly with no real major competition, therefore they can do whatever they want i.e. charge a monthly fee for streaming movies online as well as for DVD's. Unless some real competition comes about like Blockbuster stepping up with their online content, Netflix will continue unopposed. Hopefully Blockbuster will get with it and give us consumers some options. In the mean time I guess we will just have to stick it out and bite the bullet until something happens. According to the official Netflix press release, they are planning on implementing the change starting September 1, 2011 for existing members and it will start immediately for new members.
Here is the official press release from Netflix announcing the changes in their plans: http://netflix.mediaroom.com/index.php?s=43&item=397
