Netflix is bleeding subscribers right now because they botched the handling of both a price increase and splitting off their DVD business. They didn’t really think them through that well, even though they were necessary steps to take.
Now rivals Blockbuster and Redbox are circling in the water, ready to pounce. Blockbuster has that new spiffy streaming plan for Dish Network customers only, with not as many titles available for streaming. And now Redbox wants to unveil a streaming plan by the end of the year.
They’re also increasing DVD rental prices to $1.20 because of rising operating costs.
It’ll be interesting to see how many streaming titles Redbox will have at launch and how much it is. Netflix is not cheap if you want both streaming and physical DVDs sent to your house, but they have more content that everyone else. Tons more content. It is a process though. The more people switch to Redbox and Amazon and Blockbuster the more money they’ll (hopefully) have to secure better streaming deals. Until they all have to raise prices because Hollywood wants to capitalize. [Deadline]