Jun 15th, 2008
Economy of Technology: Does Netflix Help You Spend Less?
Netflix, the DVD by mail (and now streaming video) service that allows subscribers to view DVDs for a monthly fee has been a very popular choice for entertainment, especially among the Geek set. Receiving and returning DVDs by mail (postage paid) for a low price is appealing. But does it really help you spend less versus the public library?
Netflix’s lowest priced plan is $4.99 per month, which gives you two DVDs per month (one at a time) with no late fees and no due dates (it also gives you two hours of Internet viewing if you use their streaming system). You can get more DVDs, both overall and at the same time, for more money. The DVDs are mailed to you and you mail them back in postage paid envelopes. By contrast, the public library’s system here is $1 per DVD rental for one week, and a $1 late fee per week, but you have to pick the DVDs up.
It’s clear from browsing Netflix.com and the public library’s online catalog that Netflix has a much larger selection of new releases. The fact that Netflix mails the DVDs (as well as provides postage paid return envelopes) is a big advantage, because when considering the total cost of the DVD viewing, the cost of traveling to and from the library is an issue. The lack of late fees is huge as well.
In the end, if you are more than the very occasional DVD viewer (like me), it’s likely that Netflix is a pretty frugal way to view movies. And for someone like me who hates, hates, hates monthly obligations, that’s painful to say, but Netflix has earned its distinction as a very cost effective way to get some entertainment.
For me, Netflix is worth the convenience. Our local library’s movies are free for one week, but then there’s $1/day overdue charge. I dislike having to be on someone else’s schedule and having to pack up four kids to get there once a week to return the movies.
Don’t get me wrong, I’m a big library user, but the movie rentals there are too restrictive for me. I prefer Netflix, where I can have a movie sit on my desk for 3 weeks if I don’t get it watched, and where I have a huge selection of movies that I can get “next” in my queue. (If I order movies through the library, I might have to wait several weeks, and then I have to get there, pick it up, and watch it quickly to avoid the late fees.
Interesting topic. I think everyone has a different way of looking at it!