LOS GATOS, Calif., July 22 /PRNewswire-FirstCall/ -- The number one rated Web site in the world for customer satisfaction just gave people something more to love: lower prices. Netflix, Inc. , the world's largest online movie rental service, today announced it is dropping the price of two of its most popular subscription plans by $1.
The price reduction will benefit a majority of Netflix's more than six million members, as well as many more who will join Netflix in the coming months for a customer experience rated number one in independent research conducted by ForeSee Results and FGI Research. For one low fee, Netflix members receive movies and TV series on DVD and can also watch a growing number of them instantly on their personal computers (PCs) over the Internet.
The two Netflix plans being reduced today by $1 provide unlimited DVD rentals and the ability to watch movies and TV series instantly on a PC for no additional charge. The $9.99 monthly plan is reduced to $8.99 and provides unlimited DVD rentals with one DVD out at a time and the ability to watch nine hours of movies and TV series instantly on a PC. The $17.99 monthly plan is reduced to $16.99 and provides unlimited DVD rentals with three DVDs out at a time and the ability to watch 17 hours of movies and TV series instantly on a PC.
The $4.99 and $13.99 monthly plans remain unchanged as their prices were already reduced from $5.99 in February and $14.99 in June, respectively. The company said that positive subscriber reaction to lowering the $14.99 plan to $13.99 for unlimited DVD rental with two discs out at a time was an important factor in today's price reductions.
"Netflix remains the best movie rental experience on the Internet," said Netflix Founder, Chairman and CEO Reed Hastings. "Netflix pioneered the online movie rental industry ten years ago and remains its leader by offering convenience, selection and value. Today, value got a boost."
Today's announcement lines up the lowest prices Netflix has ever offered consumers, along with the same industry-leading service that subscribers have come to expect. It also reinforces the company's credentials as the only online movie rental service to offer the added benefit of immediate gratification. Netflix members can select movies and TV series from a growing library of more than 2,000 titles and start watching them on their PCs in as little as 30 seconds.
Here are the new prices and customer benefits for the three most popular Netflix subscription plans:
Price Plan Old Price $9.99 $14.99 $17.99
New Price $8.99 $13.99 $16.99
Number of DVDs out at a time 1 2 3
Number of DVDs you can rent per month Unlimited Unlimited Unlimited
Number of hours you can watch instantly
on your PC 9 14 17
Netflix members are not required to do anything to receive the price reduction. Their new lower price will automatically be reflected on their next bill, on or after July 24, 2007. Anyone wishing to try Netflix at no obligation may do so with a free two-week subscription at http://www.netflix.com/.
Netflix has been the number one rated Web site for customer satisfaction for five consecutive ForeSee/FGI surveys since 2005. The service's extensive catalogue; ease of use; fast, free delivery and personalized ratings and recommendations are some of the reasons why consumers rate Netflix so highly.
As previously announced, Netflix will release its second quarter 2007 financial results and business outlook at approximately 1:05 p.m. Pacific Time tomorrow, July 23, followed by an investor conference call at 2:00 p.m. Pacific Time. During that call, company management will address the financial implications of this price reduction. The live Web cast of the conference call will be available on the investor relations section of the Netflix Web site at http://ir.netflix.com/.
About Netflix
Netflix, Inc is the world's largest online movie rental service, providing more than six million subscribers access to over 80,000 DVD titles plus a growing library of over 2,000 titles that can be watched instantly on their PCs. The company offers nine subscription plans, starting at only $4.99 per month. There are no due dates and no late fees -- ever. All Netflix plans include both DVDs delivered to subscribers' homes and, for no additional fee, movies and TV series that can be started in as little as 30 seconds on subscribers' PCs. DVDs are delivered free to members by first class mail, with a postage paid return envelope, from over 100 U.S. shipping points. Nearly 95 percent of Netflix subscribers live in areas that can be reached with generally one business day delivery. Netflix offers personalized movie recommendations and has more than one billion movie ratings. For more information, visit http://www.netflix.com/.
