Netflix price increase

[AzStevenCal]

I got an email today from Netflix informing me that they are raising my current package by 50 percent (unlimited streaming and unlimited DVD/Blu Ray 1 disc out). I haven't been with them long (one year) but this seems like quite an increase. Is everyone else getting this same increase or are some of you locked into better prices?

I'm really not sure how I feel about this. It's only 6 dollars a month more so I'll probably just pay it but the percentage kind of throws me. I use their service quite a bit so when I compare it to what I pay for FIOS for example, it's a tremendous bargain but I can't help wondering if I'm looking at the first of several price hikes.

Steve

 

[Brian in Mesa]

Under rates introduced Tuesday, households that want both DVDs and Internet streaming will have to buy separate plans totaling at least $16 per month. It's effective immediately for new members and Sept. 1 for existing subscribers.

Netflix Inc. had been including both options in a single package that started at $10 per month.

The $8 monthly price for only Internet streaming remains unchanged.

............................

We only have the unlimited streaming so no change for us.

 

[Brian in Mesa]

Thousands threaten to quit Netflix

http://technolog.msnbc.msn.com/_news/2011/07/12/7069809-thousands-threaten-to-quit-netflix?gt1=43001

 

[coyoteshockeyfan]

CNN actually had an article yesterday on how Netflix could be in trouble with many of their streaming contracts set to expire, turned out to be pretty foreboding: http://money.cnn.com/2011/07/08/technology/netflix_starz_contract/index.htm

Everybody's rate is getting hiked in September, looks like an extra $60ish a year for those with the dvd/streaming combo, which is pretty irritating when you consider the percentages like you mentioned. And you aren't locked in whether you've been with them for three years or three days, which feels like a kick to the groin for the customers who've been there from basically the start.

 

[AzStevenCal]

Thousands threaten to quit Netflix

http://technolog.msnbc.msn.com/_news/2011/07/12/7069809-thousands-threaten-to-quit-netflix?gt1=43001

I guess I'm not the only one taken aback by the percentage increase. I watch so much off of streaming that I'm sure I'll get my money's worth even at the new price so I won't be joining the fleeing masses. Maybe I'll dump the mailing option and just save a few bucks with streaming only.

Steve

 

[thirty-two]

I read today that Netflix is set to spend 1 billion in contracts for streaming rights in 2012 as compared to the 100 million they are currently spending. So, that cost has to put on someone, right?

I am pissed about it though. We just had a price increase in January and now another 60% raise? I don't even use Netflix for new releases because they're always "long wait" or longer.

I do use streaming though, more so than DVD, but I still want the DVD option so basically this just sucks.

edit: Here's the actual link, with the correct quote. It's predicted that Netflix's contract cost will rise from $180 million in 2010 to a whopping $1.98 billion in 2012. Which actually is even MORE money than I originally posted. Joy! http://money.cnn.com/2011/07/08/technology/netflix_starz_contract/

 

[AzStevenCal]

I read today that Netflix is set to spend 1 billion in contracts for streaming rights in 2012 as compared to the 100 million they are currently spending. So, that cost has to put on someone, right?

I am pissed about it though. We just had a price increase in January and now another 60% raise? I don't even use Netflix for new releases because they're always "long wait" or longer.

I do use streaming though, more so than DVD, but I still want the DVD option so basically this just sucks.

That makes sense. I know I read not too long ago that Netflix was the number one bandwidth user (by far, IIRC) and I guess they are going to have to pay for that privilege. I look at how much I spend on cable though and in comparison to Netflix I'm getting a much better value from my streaming.

Steve

 

[Divide Et Impera]

I have the streaming + 1 DVD package, which equals $10 per month. I'm dropping the DVD option with the price increase. I'm fine with the $8 per month for streaming, but $8 per month for what amounts to 3 to 4 DVD rentals per month is not worth it. Redbox works for that. Consider this a net negative $2 revenue for Netflix from me....

 

[joeshmo]

I read today that Netflix is set to spend 1 billion in contracts for streaming rights in 2012 as compared to the 100 million they are currently spending. So, that cost has to put on someone, right?

What is crazy is that they will have that bump to pay for streaming from the production companies and it wont improve the streaming service. They have to pay that much more just to keep the same exact contracts they have right now.

A few weeks ago I had about 60 items in my streaming list. One day later I had only 30. 30 were removed from the streaming list without warning. Usually they give you a little note on your list when the movie would no longer be available for streaming. Which means those are the ones you watch first. Was not given that option. Turns out Netflix contract was capped with Starz and Sony thus no more stuff on streaming from them. No all I got are old TV shows and straight to DVD movies sitting in there.

I dont have pay channels like HBO and Showtime so I cant use Redbox to get shows like Dexter and stuff like that so I am forced to keep the DVD service.

So the streaming catalog is tiny and just got smaller, and I am forced to keep the DVD service.

The streaming catalog better get bigger or some really good news about streaming contracts better come out by August 31st or I am going to have to re-visit my thoughts on keeping or not keeping this service, Streaming and/or DVD mailers.

I mean $16 dollars in the grand scheme is pretty tiny, but just the idea behind the 60% increase makes me hate it on principle alone.

What is funny is that Netflix customer service line is conveniently having "technical difficulties this morning".

 

[azsportsfan01]

That makes sense. I know I read not too long ago that Netflix was the number one bandwidth user (by far, IIRC) and I guess they are going to have to pay for that privilege. I look at how much I spend on cable though and in comparison to Netflix I'm getting a much better value from my streaming.

Steve

These contracts have nothing to do with the use of bandwith. Many of their contracts were signed when streaming movies weren't all that big a deal. Now everyone knows this is where the business is going so they want their share. This will kill off most of the streaming companies and leave only a few but it will take a while and it will suck for consumers.

 

[Russ Smith]

I read today that Netflix is set to spend 1 billion in contracts for streaming rights in 2012 as compared to the 100 million they are currently spending. So, that cost has to put on someone, right?

I am pissed about it though. We just had a price increase in January and now another 60% raise? I don't even use Netflix for new releases because they're always "long wait" or longer.

I do use streaming though, more so than DVD, but I still want the DVD option so basically this just sucks.

As soon as I watch Battle Los Angeles(DVD) and return it I'm cancelling.

We don't use the streaming(haven't bought a Roku player yet) so the increase for me is just not worth it. We don't watch enough DVD's and when we really want to see something there's always On Demand.

I get that they have costs but the percentage of increase is so big I'm just refusing to keep my service.

 

[kps0001]

I have the streaming + 1 DVD package, which equals $10 per month. I'm dropping the DVD option with the price increase. I'm fine with the $8 per month for streaming, but $8 per month for what amounts to 3 to 4 DVD rentals per month is not worth it. Redbox works for that. Consider this a net negative $2 revenue for Netflix from me....

 

[Beaver]

+2

 

[Divide Et Impera]

I don't know what Netflix is thinking. They have to sustain one subscriber for every three that drop off. In other words, one $10 subscriber has to accept the $6 increase just to offset the three that drop to the $8 option. This doesn't even account for those who cancel their subscription altogether. It also doesn't factor fence-sitters who are considering signing up for any Netflix service at all.

$10 per month is a great value. $16 per month is half a cable bill or a gas bill. I think there's a psychological point of economic intrusion and I have to wonder whether or not Netflix has breached this point.

I don't think that this would even be a conversation if Netflix maintained a bundle price with, say, individual services for $8 each, but bundled services for $12 for two services (streaming + 1 DVD). I think this is an overstep.

 

[MadCardDisease]

I dropped Netflix last year when I realized I was paying $16 per month. To rent Blu-Rays from them cost extra and we just didn't have the time to watch movies. We started using Red Box which was way cheaper but often didn't have the movies we wanted to see. Still we were willing to wait for a good movie to be avialable and save some cash.

Now with Blockbusters new per day pricing plan I just go to Blockbuster.

I think Netflix is in a world of hurt if they keep these price increases. Someone is going to get fired over there.

 

[AzStevenCal]

These contracts have nothing to do with the use of bandwith. Many of their contracts were signed when streaming movies weren't all that big a deal. Now everyone knows this is where the business is going so they want their share. This will kill off most of the streaming companies and leave only a few but it will take a while and it will suck for consumers.

I'm not sure how you can make that statement. If, as Kate mentioned earlier, they are really going to have to pay 10 times as much for their bandwidth next year then that seems to be a real cost that they are going to have to pass on to their customers. I'm sure you're right about everybody wanting their share but much of the cost of that feeding frenzy is probably still coming our way.

Steve

 

[Mulli]

Time for me to do a Netflix rollback or just go to all streaming on the Roku.

Redbox here I come.

 

[Renz]

I have the streaming + 1 DVD package, which equals $10 per month. I'm dropping the DVD option with the price increase. I'm fine with the $8 per month for streaming, but $8 per month for what amounts to 3 to 4 DVD rentals per month is not worth it. Redbox works for that. Consider this a net negative $2 revenue for Netflix from me....

I'll probably do the same. I watch a lot of streaming, mostly foreign films, and my kids watch it a lot too, so I get my money's worth there.

 

[Pariah]

I get why they did it...they need to pay for those streaming contracts and before they were just including streaming. You gotta pay for what you give your customers.

That said, I'm cancelling my DVD portion of the service. $8 for one-out-at-a-time? No thanks. I only watch about 3 discs a month and I can get those at Redbox now.

 

[Dr. Jones]

I tried Netflix streaming for a month and hated the quality of the playback. Has Netflix addressed this?? I want true HD streaming but never seemed to get high quality video and sound.

Any feedback about current quality???

 

[Cheesewater]

I'm cancelling.

 

[kps0001]

I tried Netflix streaming for a month and hated the quality of the playback. Has Netflix addressed this?? I want true HD streaming but never seemed to get high quality video and sound.

Any feedback about current quality???

I think the streaming quality is excellent. I usually get about 40-50 Mbps d/l with my connection and have no problems with the quality even if other people are on my network (xbox or listening to streaming music or videos)

 

[Dr. Jones]

I think the streaming quality is excellent. I usually get about 40-50 Mbps d/l with my connection and have no problems with the quality even if other people are on my network (xbox or listening to streaming music or videos)

Download speed isn't my issue.... I am not happy with the playback. It is often grainy and not 720 or 1080. I have tried my Wii and my Samsung Blu ray player and both were poor.

 

[kps0001]

I usually use my xbox or computer. I have to say the quality on my wii is subpar.

 

[thirty-two]

That said, I'm cancelling my DVD portion of the service. $8 for one-out-at-a-time? No thanks. I only watch about 3 discs a month and I can get those at Redbox now.

I think this is what I am going to do. I can get the rest of the DVDs I want at the library or red box.

Perhaps this is what Netflix wants us to do anyway - just have streaming.