Emphasizing once again the power of broadband--and inherently, if one were to take that path, the power of cable operators to charge more for faster broadband--Netflix (Nasdaq: NFLX) has developed a new offering of unlimited access to its library of streaming movies and TV shows for $8 a month. Concurrently, the company that started by distributing DVDs and migrated to the Web, raised the price of various DVD plans up to eight bucks a month.
Netflix launched a similar plan in Canada in September as part of its migration into becoming what CEO Reed Hastings described as "primarily a streaming video company."
Of course you mustn't overlook the fact that streaming video is cheaper than distributing hard copies of DVDs. While it's reasonable to expect Netflix to pocket some of those savings, the company has said it would reinvest the money into licensing more online content.
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- FierceOnlineVideo has this story
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