Netflix may offer streaming-only pricing in 2010

Paying less for streaming sounds nice, but the online catalog is still limited.

(Credit: Sarah Tew/CNET Networks)

Netflix is considering offering a streaming-only pricing tier as soon as next year, according to comments made by CEO Reed Hastings in a report by Bloomberg.

The streaming-only membership could be popular among those with Netflix-enabled devices (such as the Roku Netflix Player, Xbox 360, and LG BD300) who want streaming access without the full cost of a Netflix membership. Netflix hasn't said how much the streaming-only tier would cost, but we'd assume it would be less than the current entry-level $9-a-month unlimited plan.

On the other hand, we're still on the lookout for Netflix to start charging a premium on customers who use the streaming service in addition to DVD rentals. The company has already introduced premium pricing by charging Blu-ray renters an extra dollar a month, and it feels like it's only a matter of time before heavy streamers pay a premium as well--or at least for premium content. In other words, keep on streaming while the streaming's free, because it may not last forever.

(Sources: Bloomberg via Engadget HD)

[michaelportent]

Maybe they'll be looking at bolstering their streaming lineup prior to 2010 to make it more worthwhile.

[BigGuns149]

Whether this pans out or not (this is a rumor afterall) I think that you will see them increase the amount of content available for streaming simply because the cost of delivering the content is cheaper.

[hornerea]

The sky is falling! The sky is falling!

This site is labelled CNET NEWS!!!

Get back to us if you EVER have NEWS to report instead of vague, "You can't trust a big corporation that wants to make money!" crap.

[megustansalchichas]

agree with hornerea -there's usually no news in CNET NEWS. should be renamed CNET blog.
Apple MAY offer cheaper laptops in 2010.
Windows 7 MAY be a big hit with the current XP crowd by 2010.
The economy MAY recover by 2010. and
CNET MAY report on news by 2010.

[jaxstephens]

Agreed. It seems like CNET News has, over the years, turned into a bunch of blog posts that aren't always that professional in terms of their news content.

[BigGuns149]

I think that you will eventually see a streaming only pricing tier, but depending upon how successful they are in adding additional content I think that it may take longer than a year.

I think that eventually that one is going to see them either increase the cost of the unlimited streaming tier or require some surcharge to stream some premium streaming content (ie. content with higher royalty payments). While bandwidth is getting cheaper the royalties to stream the content aren't getting any cheaper so unless the decreased costs of the bandwidth offset the increased royalties they are paying Netflix would be seeing their profits decline.

Furthermore, due to the relatively high processing fees for small transactions while I could see a streaming only service being cheaper, I doubt that they would make it too much cheaper.