Apparently, the dam has finally burst and the camel’s back has broke – Netflix has begun offering a streaming-only option to its U.S. users. The plan, which will match Hulu’s recently-introduced $7.99 streaming video price point, will offer unlimited streaming of TV episodes and movies via any Netflix-enabled device, without the envelopes and mailboxes.
Previously, the cheapest Netflix plan was $8.99 for unlimited streaming with one DVD out at a time. This is no longer available and instead, users can sign up for the new $7.99 streaming-only plan, or for $2 more can get one DVD sent to them at a time.
Just one month ago new, we wrote that Netflix was considering streaming-only as an option for U.S. users. Netflix CEO Reed Hastings had said that “When there is demand, it will make sense for us to meet that demand for streaming only.” Two weeks later, we took another look at Netflix’s quarterly report and determined that the streaming-only option was inevitable. Forrester analyst James McQuivey had pointed out on Paid Content that streaming-only had become the delivery method of the majority of its users.
As a matter of fact, today’s press release by the company starts out with an acknowledgement that “its members [are] now watching more content streamed over the Internet than on discs delivered by mail.”
“We are now primarily a streaming video company delivering a wide selection of TV shows and films over the Internet,” said Reed Hastings, Netflix co-founder and CEO. “Today’s action reflects the tremendous customer value we’ve injected into streaming from Netflix, our initial success with a pure streaming service in Canada for $7.99 a month and what our U.S. members tell us they want.”
For those of you who are like me – who consume the majority of their content on devices like their Roku box, their iPhone or iPad sitting in the airport, or on their netbook – the day has finally come. Say it with me – we don’t need no stinking DVDs.
The only question now is, do you choose Netflix or Hulu?
