Netflix Offers One Month of Free Disc Rentals to Streaming Subs27 Aug, 2012 By: Erik Gruenwedel
Netflix is quietly offering its 24 million streaming subscribers in the United States a free month of disc rentals, the by-mail packaged media rental pioneer disclosed in a company blog.
Los Gatos, Calif.-based Netflix is also offering its 2.5 million disc-only subs a free month of streaming. Both offers are part of tweaks to the service’s billing statement that went into effect Aug. 23.
Specifically, Netflix’s 6.7 million hybrid disc-rental subscribers will now see their monthly charges itemized into separate streaming and disc categories, plus any applicable local taxes. Netflix’s 9.2 million disc subs represent the service’s most profitable operational segment, generating $134 million in operational profit, including 46% contribution margins in the most recent fiscal quarter.
“All Netflix members, whether they have streaming and/or DVD service, will continue to have one website, one email and password, and one destination for managing their account,” wrote Eddy Wu, senior manager of product innovation.