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Netflix Testing Streaming-Only Model in the U.S.?

A Netflix spokesperson would not confirm nor deny over the net chatter the digital video disc rental services is screening a $7.99 streaming-only approach in choose marketplaces nationwide.

According to, Los Gatos, Calif.-based Netflix is screening a approach that could consist of the $2-per-month choice to lease one digital video disc at a time, bringing the complete price tag to $9.99 every calendar month — $1 a whole great offer over the present $8.99 approach for one digital video disc and limitless streaming.

Last calendar month Netflix bowed a $7.99 (Canadian) streaming-only approach in Canada — the company’s very first international organization venture. CEO Reed Hastings pointed out Netflix will be launching a streaming-only services within your United States within your near to future.

“We’re continually screening customer sentiment for anything associated to Netflix, regardless of whether it is pricing, internet web site design, content articles or devices,” mentioned Netflix spokesperson Steve Swasey, adding he wouldn’t confirm any particular testing.

Noteworthy will possibly be the reality that Netflix has supplied a domestic ($7.99) streaming-only choice for Starz mass media content, which consists of Disney titles, because 2008.

Netflix’s streaming service, which remains to be credited with producing subscriber progress previous 15 million month-to-month members, last month been given a strike of sorts when industry professional (and Netflix subscriber) Dan Rayburn decried what he believed to be considered a limited assortment of titles accessible electronically. Specifically, Rayburn mentioned the reality Netflix supposedly accelerated its electric offerings by 4,000 titles because 2008 underscored a weakness.

“That’s not just an enormous amount of content,” he authored in the post.

Rayburn wondered once the newest 28-day delayed availability of new launch digital video disc titles from several big studios wasn’t a whole great offer more advantageous to Netflix (through reduce price tag DVDs) than supposedly escalating (catalog) streaming content articles availability to subscribers.

“As a Netflix user, I desire to know what I am finding by providing up the ability to acquire new films by mail once they can be found out,” he wrote.

Edward Woo, analyst with Wedbush Morgan Securities in Los Angeles, mentioned the screening and apparent price tag shifts upward aren’t surprising. He mentioned Netflix is below stress (notably with a reportedly pending streaming business from Amazon) to upgrade the exceptional of its electric content, which consists of the means to spend for it.

“It does look that Netflix is attempting to recover a few of its costs for streaming,” Woo said. “The price tag for streaming substantially accelerated by virtue of its [$1 billion] Epix deal. This [price increase] would make feeling — along using the a reputation that it attributes a whole great offer more pricing energy as Blockbuster remains to be hobbled by means of bankruptcy.”