Why Netflix Wants You to ‘Just Say No’ to DVDs | Gadget Lab | Wired.com: Now Netflix’s goal is to push digital even harder by enticing customers to opt for the streaming plan. Instead of Netflix’s former plan — 10 bucks per month for all-you-can-stream online movies and endless DVDs by mail — the services have been split into two separate plans, ultimately making the streaming service more attractive to customers. For unlimited movie streaming service, you’ll pay eight bucks a month. For unlimited DVDs, you’ll pay eight bucks a month. So if you still want both, it’ll cost you $16 a month total.
Therefore, the incentive for customers who want more bang for their buck — i.e. more movies per month — rests in the streaming plan. If you go the DVD route, you’re only allowed one DVD out at a time. That means waiting for days before you get another flick.
And that’s exactly what Netflix wants.
“They’re driving people away from the model that’s no longer cost-effective for them,” Forrester analyst James McQuivey told Wired.com.