Netflix Splitting DVD and Streaming Subscriptions

[BoredSysAdmin]

Netflix is sharply raising prices

If you've been enjoying paying $9.99 for unlimited streaming and DVDs from Netflix, get ready to pay more — or have to choose between watching movies online or through your DVD player.

Netflix has just announced that it is splitting streaming and DVDs into two separate plans of $7.99 each. For that price, you'll get either unlimited streaming or unlimited (but one at a time) DVDs. If you want two DVDs at a time, it will be $11.99 per month. Netflix will allow you to combine plans, but offers no discount. So streaming plus one DVD at a time is $15.98/month. Two DVDs at a time will be $17.98/month.

If you're currently a Netflix subscriber, you have until Sept. 1 before the change kicks in. New subscribers will begin seeing the new rates immediately.

Source:

http://consumerist.com/2011/07/want-both-netflix-streaming-and-dvds-that-will-now-be-1598.html

 

[j_garcia]

Isn't like it is news. They sort of hinted at that because they want to move most people over to streaming. The good news is that they've added a LOT of content to the streaming side recently, so I have been watching more stuff streamed rather than on disc. I will most likely drop discs and just stream.

 

[BoredSysAdmin]

This comment on official blog says it's all:

the only way that this is terrific for the customer is if you plan to offer your entire collection available for streaming.... otherwise this is just yet another way to choke more change out of your customers.... I mean... are you guys really that strapped for cash? or are you just greedy? ALSO, what a great way to treat you long term customers, we REALLY appreciate it...i can understand you applying it to new customers... but please, explain to me who's brilliant idea this was... I hear it going like this " Hey I have an idea of how we can show appreciation to our long term valued customers.... let's take MORE of their money, that way they REALLY feel valued!"....IDIOTS.

 

[j_garcia]

They said last year in a statement that they intended to eliminate discs entirely, but that will obviously depend on how many people still want discs.

 

[lsiberian]

Honestly this makes sense. Netflix replaces cable for me and I'd pay 40 bucks a month for it. Because it would still be way better than cable.

I like the discs part, but I may drop down a disc.

 

[jinjuku]

This comment on official blog says it's all:

I think that poster is a bit misguided. Netflix has flown under the radar for a long time.

I always thought the $8.99 I am paying for 1 DVD + Streaming is an insane deal.

I knew it would be to good to last. If that poster has found a better, legal, service for less $$ then I say they should knock themselves the eff out and purchase it.

My thresh hold is $20 personally. After that it's just 'TV'. Netflix is sitting no where on the cash reserve potential competitors have. The likes of Google / Comcast / Apple etc could wipe out Netflix with almost no thought.

 

[jinjuku]

I love this comment from the blog:

You've decided to raise customer rates during a period of economic downturn, when people are struggling to pay for basic necessities and when cable tv is just too damned expensive. You're forcing me to pay more for products and services I've paid for loyally for quite a while now. You're really, REALLY making me reconsider this business relationship.

So the poster is most likely paying 30/40/50+ for cable and Netflix is going to go up to a whopping $15?

If you're that tight on $$ dump all your services. It's not a necessity.

 

[j_garcia]

My brother already dropped Comcast in favor of Netflix streaming. If you want the odd disc here and there (new releases) there's Redbox with no monthly fee. I currently do 1 at a time unlimited with BD monthly. I used to watch maybe 8-10 discs a month, but lately I've been watching only about 2-3 and streaming everything else. If it is something I know I want to see on BD, then I will get the disc.

 

[sholling]

The price for 1 DVD/mo + unlimited streaming is going from $10/mo to $8 for unlimited streaming or $8 for 1 DVD/mo or $16/mo for both - a 60% price increase. This is probably due to the huge licensing fee increase that the studios are demanding. This is supposed to effect new customers for now and existing customers as of September. IMO this probably also reflects Netflix's realization that the Studios and several large ISPs (see usage caps) want to kill off their streaming business and force Netflix's customers to spend more on buying discs and cable/satellite PPV. Maybe the studios could try making movies people actually want to watch instead?

I dropped from 3 BD/mo to 2 with the last price increase. I won't let my bill go up again and since I rarely stream so I'll be dropping that first and then may just drop Netflix completely with the next price increase.

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/07/netflix-hikes-prices-for-many-consumers-with-separate-pricing-for-dvds-streaming.html

http://blog.chron.com/techblog/2011/07/netflix-separates-streaming-dvd-plans-and-as-a-result-raises-prices/

 

[jinjuku]

My brother already dropped Comcast in favor of Netflix streaming. If you want the odd disc here and there (new releases) there's Redbox with no monthly fee. I currently do 1 at a time unlimited with BD monthly. I used to watch maybe 8-10 discs a month, but lately I've been watching only about 2-3 and streaming everything else. If it is something I know I want to see on BD, then I will get the disc.

With my average DVD purchase only costing me ~$5 I can purchase and own three every month what we would normally pay Netflix at $16 a month come September.

While the streaming is nice I have to now almost exclusively use the Netflix Gems thread at AVS to find anything worth watching.

Their streaming library may offer 20,000 titles but 19,900 of them absolutely suck. My recent streaming finds were Battlestar Galatica, Winchester 73' (and one other Ed Norton flick).

I dunno, I may in a month or three just be reduced to used DVD / BR purchases. At least someone local gets my $$ or it's the small fry at Amazon.

 

[BoredSysAdmin]

I think that poster is a bit misguided. Netflix has flown under the radar for a long time.

I always thought the $8.99 I am paying for 1 DVD + Streaming is an insane deal.

I knew it would be to good to last. If that poster has found a better, legal, service for less $$ then I say they should knock themselves the eff out and purchase it.

My thresh hold is $20 personally. After that it's just 'TV'. Netflix is sitting no where on the cash reserve potential competitors have. The likes of Google / Comcast / Apple etc could wipe out Netflix with almost no thought.

Netflix was under the radar at the point then they signed the big content distribution deals for small pennies - lower tens of millions.

But Netflix has been on the radar on big studios for a while now, but since now these contracts are expiring - new ones are rumored to be at least ten fold higher than older ones. Add to the fact I doubt this price hike would be able to cover for these new licenses...

Fact two: I quickly asked several of my colleagues (none of them in financial dire) and most of them said they have combined Netlfix packages. All them confirmed that they will modify the subscription to go with ether option, but not both since both are just too expensive.

 

[mtrycrafts]

...

If you're that tight on $$ dump all your services. It's not a necessity.

Exactly my feeling

 

[j_garcia]

It started with all these "other" devices that have Netflix now. So they started offering streaming only accounts for ~$5/month. $8/month is pretty reasonable to me. Their streaming was extremly limited previously, but with the new deals there's like 200% more content available than just 6 months ago. While everything I would like to watch isn't available via streaming, there's enough that is and that catalog will only grow. Those deals that allow them to stream a ton more content are no doubt the reason why the pricing is goning up.

What you will NOT see are major new release films up for streaming right away unless they add another level for that. New films just don't show up right away.

It is also not always HD, when it is, it is 1080i, and unless you have a PS3 it is stereo only for audio. Even on the PS3 it is 5.1 only and only a limited number of titles.

 

[lsiberian]

It started with all these "other" devices that have Netflix now. So they started offering streaming only accounts for ~$5/month. $8/month is pretty reasonable to me. Their streaming was extremly limited previously, but with the new deals there's like 200% more content available than just 6 months ago. While everything I would like to watch isn't available via streaming, there's enough that is and that catalog will only grow. Those deals that allow them to stream a ton more content are no doubt the reason why the pricing is goning up.

What you will NOT see are major new release films up for streaming right away unless they add another level for that. New films just don't show up right away.

It is also not always HD, when it is, it is 1080i, and unless you have a PS3 it is stereo only for audio. Even on the PS3 it is 5.1 only and only a limited number of titles.

streaming 1080p would be way too costly considering most folks are using their PCs to watch. Most of the stuff I watch on Netflix wasn't filmed in HD anyway. It is amazing if you love TV shows. I don't really use it for movies. to me the streaming is like TV and the mailing are like renting. Does redbox do blu-ray?

 

[j_garcia]

streaming 1080p would be way too costly considering most folks are using their PCs to watch. Most of the stuff I watch on Netflix wasn't filmed in HD anyway. It is amazing if you love TV shows. I don't really use it for movies. to me the streaming is like TV and the mailing are like renting. Does redbox do blu-ray?

Yes, redbox has Blu-ray at most boxes now, but there are fewer of them and as a result selection is limited depending on the demand where you are and how many redboxes are in the area. I haven't had a problem getting new releases from them though within a few days or so of release.

I tend to stream series mostly too, not too many movies, so I don't really care about AQ; stereo is fine for that. Also don't need HD video with most of what I stream either.

 

[templemaners]

I haven't been impressed in Netflix's streaming selections or their A/V quality. Dropping that part of my service is an easy choice for me.

 

[DTS]

Netflix without disc is useless to me...streaming just ain't gonna happen over satellite internet.

 

[sholling]

I'll drop streaming. It's their streaming service that gave AT&T and some of the cable companies the excuse that they needed to cap monthly traffic. Over time AT&T and cable ISPs will squeeze down those caps until you can't afford to stream at all.

I don't watch that many movies anyway so I may drop Netflix completely next year.

 

[moreira85]

price

Ill be dropping streaming

 

[skizzerflake]

I'll definitely stick with streaming. For me, the whole reason for Netflix is to have instant access to movies or TV shows. I've never ordered a disk via mail since waiting for delivery voids the reason for having Netflix in the first place. I've go a Red Box about 100 yards from my house, so I get my disks there. Netflix doesn't do that well with new releases, but I so much like being able to browse on impulse, that it's not a hard decision for me.

I'm nor surprised that this is happening. It's been cheap so far because the film distributors were caught unaware of how popular this would get and made cheap licensing agreements. Now they want more money.