Netflix raising rates on the sly.

BlueFox

I'm glad I just want DVDs. Better picture, better sound, lower cost. Now, and in the future.

This is a good article giving an overview of the Netflix price change.

""Netflix has another year or two on most of these contracts, and then the game completely changes," says Michael Pachter, analyst at Wedbush Securities.

Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012."

http://money.cnn.com/2011/07/08/technology/netflix_starz_contract/index.htm?iid=EL

engtaz

What good is streaming on Netflix when most are only stereo out. Very few are 5.1.

disneyjoe7

Not sure but $16 a month for what I use, too much... Netflix is done in my book.

bobman1235

I can't believe this is three pages.

My favorite comment is this one

heiney9 wrote:

This is what you get when you nurture along a new business since day 1 and help them become successful, they 'eff you without the courtesy of vaseline.

As if Netflix were some sort of baby bird you nursed back to health by spitting food in its mouth. It's a company. You paid for their service because they offered something you wanted at a good price, not because you have kindness and love in your heart for beautiful Netflix and you wanted them to succeed. They don't owe you crap, just like you don't owe them crap.

The idea that large businesses do or should care about ANYTHING other than money, and maybe some pride in their product, is a fantasy peddled by Madison Avenue. They love that you rubes still buy into it, 60 years fter they started pretending it existed, but it doesn't, and never has. Your local neighborhood establishment may care about you, but a huge company like Netflix (or Coke or Budweiser) doesn't. CAN'T. There are way too many people involved, and the reason all those people are involved is for money, not love of the stranger who "nurtured" their business. What a joke.

Demiurge

Why can't people just make a decision based on their own interests? Netflix is doing nothing wrong. If they've erred some way in their business decisions here, they'll pay for it in lost revenue.

I cut back on my plan because I wasn't taking full advantage of what I was paying for already, and with Netflix raising rates even further it gave me enough motivation to make a change.

Netflix has been a great service, but it's value depends entirely on who you are as a consumer. For me, Unlimited (3) Blu-Rays out at a time + Unlimited Streaming wasn't worth the new price coming in September because it wasn't worth the price to me now.

The streaming service is good, but the selection absolutely sucks. I might see the value in it if I had my own children under the age of ten living in the house, and even then it's a stretch.

Netflix isn't **** anyone except possibly themselves and their shareholders in this move to raise rates. They're providing a service for which you're free to come or go as you please.

Don't like it? Quit or reduce your plan.

mrbiron

I have no qualms with Netflix raising their rates...Everyone does it.
For me, i have a tendency to get my movies and leave them on the shelf for 2-3 weeks before watching. As for my rate, going up $6 additional dollars to have the same movie on the shelf is silly and i think it will motivate me to actually cut my losses. I will, without a doubt, join Netflix again in the future when i have more time but for now, I'm out.

disneyjoe7

WTF! Guys....

Gas prices jumped to $6.89 a gallon... It's ok because they are in business to make money.

quadzilla

Seriously... they were charging 2 bucks extra for unlimited DVDs on top of the streaming price. When they announced that, I sort of wondered how they would make money, since I'm pretty sure it would cost more than 2 bucks just to ship 3-4 DVDs a months to someone.

And since I got an email from them telling me this, it doesn't seem like they're really doing this on the sly. I can cancel the streaming or the DVD part, or both.

JustinHEMI

I like that they split it out. I never use streaming, because I didn't build my humble little system for watching compressed streams of choppy video with bad audio (more my internet's fault, granted), so 10 bucks a month for 4-5 blu rays/month is pretty good deal for me. I don't use Comcast's on demand either because I like HD vid and HD sound as part of the whole package.

And like Quadzilla said, I am not sure what "on the sly" means. I got an email explaining everything, and my options.

Justin

heiney9

After furthur assessment I get much more use from streaming than I do with DVD's so I'll probably drop the DVD option and rent from a local video store down the street. I have had the same DVD for 2 months sitting in the mailer unopened.

I just don't need to have the newest movie the day it comes out or the first day it's available. Some of you have to have the movie within a week of release, that doesn't bother me in the least.

I want to have a selection of movies, TV shows, documentaries, music concerts, etc to choose from because my viewing habits are last minute.

Shows i'm currently streaming
Lost
Arrested Development
Dr. Who
BBC Top Gear
Weeds
Dexter
Doll House
Farscape
Heroes
Skin
Torchwood

Not to mention all the others in my queue waiting for me to start

All those would go away if I dropped the streaming. All but one or two are in HD. So for me streaming is absolutely necessary as I'd have to check out all the dvd's in order to watch the entire series. Granted some of the more recent episodes are DVD only so that does leave me with a dilema.

H9

AsSiMiLaTeD

I'm a process improvement consultant and a Six Sigma Master Black belt, so believe me when I tell you that I have a full appreciation of looking at a rate vs a count (in this case a price increase of 33% vs a price hike of $5).

However, only looking at a rate can often times hide the 'real world impact' of a situation, AND you're only looking at ONE rate when there's really two you should be looking at to put it in context. Everyone wants to keep throwing out the gasoline example, that's an absurd comparison so lets run with that...

My Netflix subscription is going up by 33% (you guys whining about 63% must be on the lower plans), for me that's $5 extra bucks a month, or $60 a year, remember this number.

Let's say gas also went up 33% as well. I believe the national average is 3.6, so a 33% increase would put gas at 4.788 per gallon, an increase of 1.188. I have no idea what the average person consumes in fuel, so I'll use my numbers, 30 gallons a week, or 1560 gallons a year. At my price increase of 33% (1.188) that's an extra 1853.28 per year in fuel cost.

So just looking at the two numbers, that right there should give you an idea of where you should be focussing your efforts, clearly the real world 'numbers' tell you that, in the grand scheme of things, the Netflix price increase is insignificant when compared to a potential full price increase of the same amount.

But in case you don't get the point, I'll put things back into the form of a rate since you people seems to be so hung up on a rate and the gasoline analogy. I don't know what the national income average per household is, so let's just pick a number, say $40,000. Now let's look at the IMPACT of each of these price increases on your salary.

The Netflix increase is going to cost you an extra $60 per year, so .0015% of your salary. The gas increase is costing you 1850 a year, or .046 % iof your salary.

Looking at the numbers, a similar rate increase in gas would cost you 30 times as much money, both in terms of actual dollars and in terms of a 'salary impact rate' or whatever you want to call it so let's stop using the gasoline analogy because it doesn't hold up.

heiney9

Again, so just because it's a small amount in dollar terms, still a large increase percentage wise, it's ok. It doesn't fly because they haven't given me a good reason why they are asking me to pay more.

The gas comparison is absolutely appropriate with the exception of most people NEED gas to function on a daily basis we don't NEED Netflix.

60% is 60% is 60%, doesn't matter the $$$ amount. I can afford it, that's not the issue. The issue is the company has been rolling along at one rate, increased it once and now they are telling their customers they need to pay 63% more to get the same service. I don't care if it was $1 before and $1.60 now, it's still a huge increase in price relative to what was paid before. And Netflix has not given me a solid reason to help me swallow the increase.

H9

AsSiMiLaTeD

Did you read the article about the movie studio rates for streaming that was posted above?

bobman1235

How is the gas price thing appropriate? That's a commodity, this is an entertainment thing that YOU CAN GET ELSEWHERE.

If gas prices shot up, you have no option.

If Netflix prices themselves out of the competition, THERE ARE OPTIONS.

Use the other options, or shut up. Two easy choices. Getting indignant makes no sense when all you have to do is click "cancel" and never hear the word "Netflix" again. I can't just cancel my car and not go to work when gas prices go up.

AsSiMiLaTeD

^^^ Exactly

heiney9

Bobman, why don't YOU shut up! Why can't you just present your POV without always reverting to being nasty? You don't like the discussion then move on.

As far the gas thing, there are options but people are too stubborn to use alternatives because it would inconvenience them too much.

H9

tonyb

Demiurge wrote: »

Don't like it? Quit or reduce your plan.

....and thats what freedom of choice offers folks. People make money,and some will kiss it bye-bye depending on buisness decisions. Netflix isn't doing itself any favors but in the end,it's the users choice to keep it or dump it.

Goes along with my theory of getting enough people moving in one direction, then charge more.

bobman1235

Sorry, I always forget hwo sensitive everyone is that "shut up" is considered a personal attack.

But I honestly can't believe you're continuing down the gas prices route, pretending they're even in the same ballpark. As a wise man once said "ain't the same (freakin') ball park. It ain't the same league. It ain't even the same (freakin') sport"

Here's a fun, very NSFW (language) rant about the Netflix thing (not written by me) : http://kissingsuzykolber.uproxx.com/2011/07/this-week-in-fk-you-you.html

heiney9

AsSiMiLaTeD wrote: »

Did you read the article about the movie studio rates for streaming that was posted above?

I did, but that's not the reason Netflix gave in their e-mail or press release. I realize prices can't be stationary forever, costs increase, etc. Anyway I'm done with this thread.

It's been discussed intelligently by some and abused by some. Ultimately it's up to the individual subscriber to decide if the increased cost is worth it.

H9

heiney9

bobman1235 wrote: »

Sorry, I always forget hwo sensitive everyone is that "shut up" is considered a personal attack.

Never said that, I said "being nasty". That's another thing you always do, is read things into posts that just aren't there, typical.

H9

mrbiron

I can actually smell the raging hormones from this thread!!!
When i turn off my monitor, it goes away.

ANARCHY!!!

muncybob

4 going on 5 pages...really!!?? I've had Netflix for years and always considered it a good buy....even the new pricing plan is not unreasonable. It's not like they didn't give us a choice,,,which they easily could have done by just increasing the price w/o breaking up the formats at the risk of course of losing many subscribers.
This reminds me of people that call into our local news on the "Talkback" segment and complain about the broadcast...just change the channel. For me I'm keeping the dvd's and dropping streaming so I just changed the channel. EZ PZ

shawn474

JIMINY CHRISTMAS; this thread just won't die. Here's a great idea..........if you don't like the price increase, cancel the subscription!!!! Hit Netflix where it hurts. Cancel your 16 dollar a month subscription, quit whining about it and see if they ever lower their rates to an acceptable wage for you. If not, pay more for an inferior product and then you can start a new thread how you're paying too much compared to what Netflix has to offer. For Christ's sake, man.

m1aman

I don't use netflix..... I don't even own a TV. Somehow, I survive.

Polkie2009

So basically, Netflix has rolled out the barrel and bending the subscriber over it and having their way? Lol, someone mentioned without the courtesy of vaseline? 63% rate increase,yikes!

bobman1235

Sure, if in this metaphor your rapist emailed you two months in advance and said "if you don't want to be raped, just let me know by September and I'll leave you alone."

And also if rape, in this metaphor, is as bad as the cost of a cup of coffee.

maximillian

shawn474 wrote: »

JIMINY CHRISTMAS; this thread just won't die. Here's a great idea..........if you don't like the price increase, cancel the subscription!!!!

The price increase is easier to stomach if we whine about it for a few days.

Polkie2009

You're right about that Bob, nothing cheap about the price of coffee. No wonder more people are drinking tea nowadays.

kuntasensei

I didn't think me posting this would turn into the divisive issue it has. But for me, when the service cost gets high enough for me to just BUY a Blu-ray, that cost difference does matter. It's not that the $18 a month would be too expensive for me... It's just that it isn't the value proposition it was at $13. Sure, I could drop it back to all-streaming so I can still party view bad movies with my friends on my 360... but then I wouldn't get Blu-rays. And I could just get the Blu-rays, but then... no party view on the odd occasion I want to MST3K some flicks with my friends. As a combo package, the streaming was a nice bonus to have. With the new pricing structure making me want to go either/or... the end result is that I don't place enough value on either to merit keeping it.

So I'm not whining about it... I will just be cancelling the service. That means I can spend that money on a couple of catalog Blu-rays at Amazon on the cheap every month and actually OWN them. And then when the ISPs figure out how to charge people $1/gb overage like they want to, people who are still paying for Netflix streaming can reassess the value of it as well.

megasat16

New Titles are very limited for streaming.

New DVD / BluRay releases take a long time to be mailed coz you have to wait in a long queue with most everyone.

RedBox, Blockbuster Kiosks are the answer to this crazy Netflix increases. I am going to boot the netflix till they start offering better streaming service.

So long, sucker!