Netflix Raises Prices by 60%

boblipton · Post by **boblipton** » Tue Jul 12, 2011 8:25 pm

This article turned up in the New York TIMES web page.

http://www.nytimes.com/2011/07/13/techn ... f=business

Post by **silentfilm** » Tue Jul 12, 2011 8:57 pm

I got this in my email toady...

Dear Bruce,

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $14.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 2 out at-a-time (no streaming) for $11.99 a month

Your price for getting both of these plans will be $19.98 a month ($7.99 + $11.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

You can easily change or cancel your unlimited streaming plan, unlimited DVD plan, or both, by going to the Plan Change page in Your Account.

We realize you have many choices for home entertainment, and we thank you for your business. As always, if you have questions, please feel free to call us at 1-888-357-1516.

Frederica · Post by **Frederica** » Tue Jul 12, 2011 10:25 pm

silentfilm wrote:I got this in my email toady...

Dear Bruce,
(snip)

I got the same e-mail. I can't bring myself to complain. It's still good value for money. I sometimes watch 15-20 films/television episodes per month, and the unlimited download thing is either the best thing since post-it notes or the end of civilization as we know it. I haven't decided yet, because I'm busy downloading movies.

Post by **Mike Gebert** » Tue Jul 12, 2011 10:29 pm

Sure seems like they're trying to kill off DVD mailing in favor of streaming.

augustinius · Post by **augustinius** » Wed Jul 13, 2011 5:42 am

Those costs are only going to go up, especially for streaming. Netflix made their deal for streaming at a time when the studios were oblivious to the potential of streaming, and I read where they may charge Netflix up to twenty times more on the next contracts to come. Those costs will get passed on to consumers, and I can't imagine that the streaming will continue in unlimited form. They will either charge a huge unlimited price or else charge per download which will make it equal to the old price of renting a film. So enjoy while you can, this is not a permanent arrangement.

drednm · Post by **drednm** » Wed Jul 13, 2011 6:10 am

Fred, you can DOWNLOAD the films? How you do that?

Frederica · Post by **Frederica** » Wed Jul 13, 2011 7:53 am

drednm wrote:Fred, you can DOWNLOAD the films? How you do that?

I watch them on my laptop, often while laying in bed with my kitteh snuggled up next to me. Just click on the graphic, and voila! Scant seconds later, the movie starts! It's MAGIC! I'm doomed, doomed, I tell you!

boblipton · Post by **boblipton** » Wed Jul 13, 2011 8:04 am

So what does your kitten like to watch? FELIX THE CAT cartoons?

Bob

Frederica · Post by **Frederica** » Wed Jul 13, 2011 8:11 am

boblipton wrote:So what does your kitten like to watch? FELIX THE CAT cartoons?

Bob

Not kitten, kitteh (it's lolspeak). He pretty much snores through everything, unless there are bird sounds. For bird sounds he goes into Carnivore Mode.

Battra92 · Post by **Battra92** » Wed Jul 13, 2011 9:04 am

I'll probably drop the disc half of it which will actually give me a couple more dollars in it. Between my collection, my fiancee's collection, my parents' and siblings we have practically the Eastman House version of DVDs, VHS, LDs & Blus. I lived without it before so I can live without it now.

Frederica · Post by **Frederica** » Wed Jul 13, 2011 9:16 am

Battra92 wrote:I'll probably drop the disc half of it which will actually give me a couple more dollars in it. Between my collection, my fiancee's collection, my parents' and siblings we have practically the Eastman House version of DVDs, VHS, LDs & Blus. I lived without it before so I can live without it now.

Has anyone tried Amazon.com's service yet? I'm wondering how it compares.

Post by **silentfilm** » Wed Jul 13, 2011 11:12 am

http://www.cnn.com/2011/TECH/web/07/13/ ... l?iref=NS1

Netflix customers see red after price hike
Mark Milian

By Mark Milian, CNN
July 13, 2011 11:30 a.m. EDT | Filed under: Web

(CNN) -- If Netflix had filed Tuesday's price-hike news in a movie genre, it would be either drama or horror.

U.S. customers of the DVD-by-mail and Web-streaming service are storming the Internet to protest Netflix's plan to increase the prices of its most popular packages.

"The changes you guys have made in the last 4-6 months have turned me from a serious Netflix Geek into considering cancellation. It's a damn shame," wrote a customer named Justin Block, one of almost 6,000 commenters on Netflix's blog.

Netflix's Facebook page attracted more than 28,000 comments as of Wednesday morning, most of them critical of the move. And thousands of consumers were voicing complaints under #DearNetflix on Twitter.

Netflix has adjusted its offerings, separating physical disc mailings from Internet video. DVD-only subscriptions start at $7.99 per month, the same price as a streaming-only plan. But a monthly plan that combines physical DVDs with Web streaming costs almost $16 -- a 60% price increase.

For prospective customers, the new pricing structure went into effect on Tuesday. For current subscribers, the rates will change on September 1.

Netflix, which did not respond to a request for comment, outlined the adjustment in a company blog post. In the message, a spokeswoman was very upbeat, describing each plan as "a terrific value."

Commenters weren't as enthusiastic.

"The only way that this is terrific for the customer is if you plan to offer your entire collection available for streaming," wrote Scotty Fagaly, a self-described longtime customer whose comment was "liked" more than 4,800 times. "Otherwise, this is just yet another way to choke more change out of your customers."

Time.com: Here are some Netflix alternatives

Netflix has more than 23 million subscribers. The company has a very popular online streaming program that's available on dozens of electronic devices, including computers, video-game systems, television set-top boxes, smartphones and tablets.

In Canada, Netflix offers only the streaming service, not the DVD mailings.

However, the streaming program's convenience and ubiquity is sometimes overshadowed by its dearth of quality movies available for streaming, relative to those contained in Netflix's extensive DVD catalog.

"I realize Netflix cannot stream what the studios do not allow, but this is a disparity that really should be acknowledged in the price scheme," wrote Travis McClain, a decade-long Netflix subscriber who felt compelled to express his frustrations on the company's website.

The price hike came shortly after Sony Pictures Entertainment pulled its films from Netflix's streaming program last month -- a move Netflix maintains is "temporary."

Rivals Hulu, Amazon Instant Video and other online subscription programs have failed to match the size of Netflix's catalog.

However, Netflix can't fall asleep on the couch. The cost to license from Hollywood is likely to increase substantially as deals expire and Netflix gains more influence on the studios' businesses, analysts say.

As a workaround, Netflix plans to ink exclusive licensing deals with high-profile producers, Netflix CEO Reed Hastings said at a technology conference last month. For starters, the company will broadcast "House of Cards," a show starring Kevin Spacey and directed by David Fincher, maker of "Fight Club" and "The Social Network."

Media executives have not been bashful in their recent panning of Netflix.

Comcast CEO Brian Roberts wasn't convinced about Netflix's impact on the industry, he said at a recent event hosted by Fortune magazine. Likewise, Jeffrey Bewkes, CEO of Time Warner, which is working on competing initiatives with HBO Go and TV Everywhere, likened Netflix to the unthreatening Albanian army. Time Warner also owns CNN.

In this case, Netflix is likely in search of additional revenue to offset the growing bandwidth and infrastructure costs, analysts say.

Until now, customers have been getting streaming services at a bargain, said Robert Levitan, the CEO of Pando Networks, a firm that provides streaming software to gaming companies and previously to NBC Universal.

"Consumers have an unlimited appetite for consuming streaming right now," Levitan said. "We all tend to think, as consumers, that we just click 'play,' and it comes down. We don't realize the physical and financial costs of serving that data."

Among many consumers, Netflix is beloved. The company has ranked No. 1 for customer satisfaction in four consecutive years, according to surveys by market research firm ForeSee Results. But Amazon.com, which recently launched its own video-streaming service, narrowly edged Netflix in the most recent annual survey.

Some bloggers offered a broader contextual perspective on the price changes.

"The machines are still featuring people whining about Netflix's fee hike. Meh," wrote Alexis Madrigal of The Atlantic on Google+. "Look at the price of a car. Or college. Or a gallon of gasoline. Or lunch at Applebee's. Or a movie ticket. People don't calculate hourly entertainment value very well."

buskeat · Post by **buskeat** » Wed Jul 13, 2011 12:23 pm

Mike Gebert wrote:Sure seems like they're trying to kill off DVD mailing in favor of streaming.

You can see just how they structure the website that they're pushing toward streaming. I wouldn't be surprised to see their DVD mailing business cease within five to ten years. They don't even bother ordering any DVD or Blu-Ray catalog titles anymore.

drednm · Post by **drednm** » Wed Jul 13, 2011 3:37 pm

I can't even run the films on my computer because Netflix "detects" I have download programs.... ????

Frederica · Post by **Frederica** » Wed Jul 13, 2011 4:18 pm

drednm wrote:I can't even run the films on my computer because Netflix "detects" I have download programs.... ????

It is distinctly possible I am using incorrect terminology, so maybe me and the kitteh are streaming all those British films, rather than downloading. I click on the little link, Netflix tells me it's checking my wifi connection, and the movie starts. It's magic, I tell you.

The one complainant in the second article mentioned that not all of Netflix's library is available for to view instantly. However, it seems that many of the available films are classics and silents, and they seem to have quite the nice little library of British films. This may be fueling my lack of outrage. I can't keep up with everything available as it is.

Battra92 · Post by **Battra92** » Thu Jul 14, 2011 6:26 am

Frederica wrote:
Battra92 wrote:I'll probably drop the disc half of it which will actually give me a couple more dollars in it. Between my collection, my fiancee's collection, my parents' and siblings we have practically the Eastman House version of DVDs, VHS, LDs & Blus. I lived without it before so I can live without it now.
Has anyone tried Amazon.com's service yet? I'm wondering how it compares.

I just signed up for a year of Amazon Prime (I order most everything there due to living in the middle of nowhere's-ville) but I haven't yet tested their streaming. The problem, of course, is that I can't play them on my PS3 on my TV.

I'd cancel Netflix in a heartbeat but quite frankly, my fiancee is the one who uses it and she doesn't want to give it up.

Frederica · Post by **Frederica** » Thu Jul 14, 2011 10:48 am

Battra92 wrote: I just signed up for a year of Amazon Prime (I order most everything there due to living in the middle of nowhere's-ville) but I haven't yet tested their streaming. The problem, of course, is that I can't play them on my PS3 on my TV.

What's a PS3?

augustinius · Post by **augustinius** » Thu Jul 14, 2011 11:02 am

Frederica wrote:
Battra92 wrote: I just signed up for a year of Amazon Prime (I order most everything there due to living in the middle of nowhere's-ville) but I haven't yet tested their streaming. The problem, of course, is that I can't play them on my PS3 on my TV.
What's a PS3?

Sony Playstation 3 video game console. It plays blu ray and does Netflix streaming.

Frederica · Post by **Frederica** » Thu Jul 14, 2011 11:16 am

augustinius wrote:
Frederica wrote:
Battra92 wrote: I just signed up for a year of Amazon Prime (I order most everything there due to living in the middle of nowhere's-ville) but I haven't yet tested their streaming. The problem, of course, is that I can't play them on my PS3 on my TV.
What's a PS3?
Sony Playstation 3 video game console. It plays blu ray and does Netflix streaming.

Thanks.

Post by **silentfilm** » Fri Jul 15, 2011 11:21 am

There's already a Hitler Rant spoof. Warning: Bad Language.

Frederica · Post by **Frederica** » Fri Jul 15, 2011 12:09 pm

silentfilm wrote:There's already a Hitler Rant spoof. Warning: Bad Language.

I give that a 5.4. It's not as good as the Carmaggedon one. Which might not have any resonance outside of Los Angeles, but still.