Netflix Hikes Prices To Shift Distribution Model

For those of us who can remember Netflix saying that online delivery of movie and other content was coming, but not so soon, and that, in any case, Netflix would adapt, it is a bit startling to see Netflix taking steps to push its customer base towards streaming delivery.

Many have noted that the new price plans, for customers who want both unlimited DVD rentals and unlimited streaming, are increasing 60 percent. In fairness, 60 percent of a smallish number is still a smallish number.

But some would argue that Netflix operating costs will be lower, and its customers can pay less, if they shift to streaming only. The price plan changes are what one calls a "tipping point," or "inflection point."

Netflix Hikes Prices To Kill DVDs