I've been a Netflix subscriber since 2002. Most of that time I was on a three-discs-at-a-time unlimited plan. That is, there was no limit on the number of discs I could get, but I could only have three at my home at a time. About a year ago I switched to two-at-a-time unlimited because some of what I wanted to watch was available on streaming (i.e., downloading from the Internet). And streaming is unlimited (and immediate) and was free.
Of course, while you could conceivably watch three movies a day and send them in for three more (about a two-day turn around) and watch, say, 30 DVDs a month, Netflix punishes you for renting too many DVD (and "too many" is very vague). They "throttle" you and don't send you new releases very fast (you could literally wait months). I found that on the three-at-a-time plan if I limited myself to two DVDs per week, I tended to not get throttled. On the two-at-a-time plan I'm on now, I'm doing three every two weeks and that seems to keep me from getting throttled.
Streaming isn't perfect. Just last night I tried to watch something on streaming and the audio and video synchronization was so far off I just couldn't watch it. Also, sometimes there's starts and stops with streaming (probably due to traffic on your ISP, I'm guessing). And the rewind and fast-forward are kludgey. But the picture and sound quality are almost up to Blu-ray specifications.
But apparently Netflix really wants its customers to stream as much as possible. Last night I got an email saying they were raising my plan by about 20% because there were going to break out the streaming (and lower its price to $7.99 per month) and then charge for DVDs/Blu-rays separately and there was no discount for having both.
The lowest cost DVD/streaming plan (one disc at a time) is going up 60% (from $9.99 to $15.99). But it's obvious Netflix would like to stop sending out DVDs and have everyone stream. Today the Wall Street Journal (sub possibly required) reported (links original):
Netflix CEO Reed Hastings has made it clear he sees Netflix's streaming service as the future of the company. Netflix isn't even bothering to launch DVD-rental services as it expands its streaming service into new territories outside the U.S., such as Canada and Latin America.
As I've said before, it costs Netflix $1 per disc mailed out and back and five centst to stream a movie. So, of course, they want everyone to stream. The problem is, you can't get new releases on streaming. And Netflix's DVD/Blu-ray library is much bigger than their streaming library. The streaming selections are increasing all the time, but mostly with older content such as "The Twilight Zone" and "Star Trek." It's bad enough Netflix often makes its customers wait four weeks to get newly released DVD/Blu-rays. But it takes a lot longer for new content to hit the streaming pool.
Despite this price increase, I'll stick with Netflix. I was tempted to get rid of the streaming and save the $8 per month but there's a lot of fun stuff on streaming and it is unlimited (I was bored one night and just for fun watched old Dragnet episodes from the early 70s; it was a hoot but I'd never do that through discs).
I do believe in the future all media will be streamed and people won't even bother owning DVDs/Blu-rays because they'll be able to stream anything they want to see at a nominal cost. But that's probably at least 10 years out. In the meantime, we have to go through growing pains.