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Reader Comments (Page 1 of 1)
Shawn Parr @ Jun 20th 2008 9:42AM
"Instead of families being stupid and getting the 4-8 movies at a time plan, they will just get separate 3 movies a month plans, making everything even more messy."
Yeah, Netflix is really dumb. Instead of that family having a single $24 per month or slightly more plan, they will have 3 x $16 per month plans.
They obviously have no idea what they are doing to get double the revenue from a family that is hooked on having separate queues.
Let's look at this logically, because before doing something like this, a company like Netflix has. They probably see three things happening:
1. Many/most users will keep their current plans and try to manage getting movies 'manually' now which bring in the same revenue each month
2. Some users who are addicted to the profile system will do as you say and upgrade to having multiple full accounts which will bring in more revenue in the best case, about the same revenue in the worse case where the separate accounts are lower # of disk accounts
3. Some users will downgrade their accounts which will bring in less revenue
Now when you consider what real live normal average people will do (which neither of us are as we both go to sites like EngadgetHD), #1 will probably be the majority, and some of those might even upgrade to higher # of disk plans to make the manual management easier. I suspect that the amount of people in #2 will be enough to make Netflix more money even when you factor in people from #3.