Netflix says it has added a DVD-only rental plan, costing as little as $7.99 a month. Frankly, I'm confused. We thought that was what Netflix had done back in the summer of 2011, when it said that it was creating DVD-only and online-only options.
As one might recall, Netflix said it was creating a $7.99 a month "one DVD at a time" plan and $11.99 a month for a "two DVDs out at-a-time" plan. Other plans allow users to have larger numbers of discs out at any time.
But the new change seems to allow unlimited rentals at that price. In principle, the older $7.99 plan, allowing users to have one disc out at any time, also was unlimited.
Over the years, I have argued that Netflix was underestimated, in terms of its business strategy and execution. Since the summer of 2011, Netflix has suffered unusual gaffs.
I admit I'm confused. I thought Netflix had created this plan back in the summer of 2011. What is new here?
Netflix has been drop dead simple. But this is confusing.
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