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Netflix, Inc. (NFLX) Message Board

  • singhlion2001 singhlion2001 Dec 13, 2012 3:23 PM Flag


    Whether you get 4 movies at $1.20 each, or you spend all four credits for a four-day rental, you are getting $4.80 from the DVD side of this package. So if you subtract out the $4.80 (ignoring taxes for now), the streaming service really only costs $3.20 per month, or about 40%, and that's for DVDs. If you go with 4 Blu-rays per month, then you are talking about just $3 a month for the streaming service. This assumes that you are using the four credits per month, otherwise your cost can be up to the $8 a month. But for a subscriber that uses Redbox once a week, or four times a month, a streaming service for just $3 isn't too bad. Obviously, you don't have access to as much content, but the price is much lower. For $8 a month, unlimited streaming plus 4 one day rentals seems like a good deal. Especially when Netflix charges $7.99 for the streaming plus another $7.99 for the DVD plan.

    The $8 Redbox Instant idea could be a low-cost alternative for those that want to save some money, or for those that aren't glued to the TV. If you're only watching one or two movies a week, Redbox Instant might be a legitimate alternative for consumers.

    Sentiment: Strong Sell

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