Netflix Imposes 28% Rate Hike on Existing and New Customers

[admin]

While Netflix would like to hide rate increases under the garb of "better reflect[ing] the costs of each" and giving its customers "a choice", what it really amounts to is the company passing along its increased costs of operations to consumers. Normally, that would be fine, but with consumers living under a recession that simply won't go away, and having the mindset that cutting costs is "the thing to do" right now, it's hard to get excited about what amounts to a 28% rate increase for those using both DVD-by-mail and streaming services. We break down the math on our unlimited 2-at-a-time plan and the results are not exactly heartwarming.

Discuss "Netflix Imposes 28% Rate Hike on Existing and New Customers" here. Read the article.

 

[bikemig]

I'm not excited about the price increase but it is hard to think of Netflix as ripping off customers when you think about what cable and cell phone companies do on a regular basis.

 

[ratso]

not sure how redbox is cheap (driving in your car to the local mall and paying $1.99 or whatever it is for a single movie) but netflix is ripping you off when you can without getting off your sofa watch UNLIMITED numbers of movies a month for less than a buck a day. if you had told someone that you could do that in the future back when we all drove to movie rental stores, would the first thing you thought have been "what a rip-off"? (not bashing clint as i know he is just reporting what the growing sentiment is, just think it's ridiculous that so many people believe that it's so "unfair" for anyone to ever charge more for anything. what is getting cheaper these days?).

 

[gliz]

Hmmmm , the economy is bad, what can we do that might kill our bottom line….I know raise our rates!!

 

[flamingeye]

Why can`t they have a third choice dvd + streaming too for a slightly cheaper rate instead of just dvd and or streaming I do understand the need to increase rates but at 28% that seams steep to me I was paying $11.99 for - unlimited one dvd/blu-ray at a time + steaming but now $17.99 a $6 jump $3 would of been less of a shock

 

[Adam]

It was a fun ride while it lasted. Anymore, all I do is stream, so I'll just drop the blu-ray plan that I have. Heck, their new policy is going to save me money by motivating me to finally change my plan.

 

[nickboros]

I think many people have a poor memory. A few years ago, most people seemed to be quite happy with their however-many-out-at-a-time dvd subscription, before there was even a streaming option. Then Netflix offered all the streaming that you wanted for free with any of those plans. At first the streaming service was quite terrible, with a lack of content and the content that they did have was pretty poor quality overall. At that time, most people would probably not even pay any extra money for the service. But, over the past couple years they have amazingly increased the content and quality of the content to the point where the streaming service, in addition to an antenna on my roof is my main source of television shows and movies.

Now that they have a very good quality service, with plenty of content to keep most people satisfied, they want to charge for the service. The price of this service is cheaper than any other streaming service that I know of, for this much content, at this quality and everyone is upset about the few extra dollars per month that they will have to spend.

On the other hand, the however-many-out-at-a-time dvd subscription service is starting to lose some of its value. It is about the same price that it was before the streaming was even available, but it is not of the same quality. Many lesser known titles Netflix doesn't even bother to get on DVD anymore. I used to be able to find just about any DVD, no matter how obscure, as long as it was in print. This is not the case anymore. Also, they used to get just about every Blu-ray that was released (even the smaller labels like Criterion, Focus, Blue Underground, Severin, etc.). Now they only seem to get the big studio releases on Blu-ray.

So, I'm fine paying extra for the streaming service and for what they are charging I consider it a bargain. But, the however-many-out-at-a-time dvd subscription service needs to either go back to the quality that it was before, or they need to cut the prices.

 

[scott911]

Does the majortiy of customers (especially in future) want both services as you state in your article? I have the DVD plus streaming service, but I have not returned the last DVD in over a year...

For me, streaming stuff is where it's at - and it's still a great deal.

 

[SnowmaNick]

Considering movie studio contracts are being debated due to the size of Netlix's subscriber base (Sony/Starz), the huge increase in the cost of obtaining rights to stream movies (contracts are going from a couple hundred million to possibly a couple of billion), and thew voracious appetite of new competition from Amazon/Vudu/Hulu/Blockbuster/etc., it's not a surprise that the costs that are being passed on are huge. It also serves Netflix in regards to separating and trimming the ranks of subscribers for either primarily use them for streaming or DVD/BR. Netflix has stated their goal is to go all streaming at some point, so if they can keep their streaming customers while shaking loose the DVD/BR side of things, well that helps get them to their goal.

As for me, I'm glad they did this in a way. Their streaming content sucks (sorry, but old TV shows and a smattering of films doesn't excite me), and if I drop it, I can cut back on my internet speed as I'm no power user. Apple's iTunes are too bloody expensive if you want to watch more than a handful of shows. VUDU/Blockbuster/Amazon VOD are all more expensive than Redbox, the nearest of which is only .5 miles away. Hulu and Hulu+ practically require a computer in your living room as they only can stream a pittance of content over their server to something like a PS3. Using PlayOn and other trans coders eats up computer power and still gives a crumby picture and sound to my HT, where I spent thousands of dollars trying to get the best image and sound I could.

I tried the whole cord cutting thing, for me, it didn't work. I've moved to an OTA antenna and watching movies more than TV. I'm only in my mid-thirties but I feel like an octogenarian, "streaming and cord-cuttin'. Bah-humbug. In my day we watched shiny silver discs that looked better and sounded better!"

I'm also am debating dropping the DVD/BR as I can get a few titles each month from Redbox ($1.00 for DVD's, $1.50 for BR, and I have a total of 6 machines within a 1.25 mile radius of my home) for less than the DVD subscription, and fill in other films from my own library of DVD/BR that I have built up over the years. Beyond that, my local library's movie selection rocks, they frequently have the latest titles available, have a huge catalog I can sort through online, are conveniently located on my way home, and their rates are the best. It's free with a library card.

So in the end, I've cut cable out (OTA all the way), I'm going to be opting for a lower internet plan (1.5 is plenty for work/internet browsing stuff for me), I might ditch the automatic monthly bill for DVD/BR. I can still rent videos from Redbox and check them out at the library, so I am not missing much, if anything. Hey, in the end, this math works out for me.

 

[kevon27]

I recently dropped my 2 discs at a time for the 1 disc plan plus steaming for 11.99. Now I'm back to $18.00 a month.
We need TRUE competition for Netflix. But unfortunately it's the studios who are causing the price hikes.
I may just drop the disc plan and go streaming but get my blurays' used from Amazon or the like when I see some good deals.

With everything going up in price, I see used BOOKS coming back in style as forms of entertainment.

 

[in2thelord]

I'll vote with my $$$ and cancel. Luxury not necessity

This is a luxury not a necessity. I don't HAVE to have entertainment. Short-term gain for Netflix...major long-term loss.

 

[j_garcia]

not sure how redbox is cheap (driving in your car to the local mall and paying $1.99 or whatever it is for a single movie) but netflix is ripping you off when you can without getting off your sofa watch UNLIMITED numbers of movies a month for less than a buck a day. if you had told someone that you could do that in the future back when we all drove to movie rental stores, would the first thing you thought have been "what a rip-off"? (not bashing clint as i know he is just reporting what the growing sentiment is, just think it's ridiculous that so many people believe that it's so "unfair" for anyone to ever charge more for anything. what is getting cheaper these days?).

I don't know about you but I have like 5 redboxes within a few miles, at least 15 within 10 minutes, and two in walking distance. Not to mention they locate them at places where people are expected to normally need to go, like supermarkets, to make it convenient. I don't go to Redbox unless I have something else to do on the same errand

 

[Jim Robbins]

I'll be cancelling my Netflix subscription before the next renewal for sure. I used both BD discs and streaming. Honestly, I was never impressed with the streaming because not very many movies had 5.1 audio. There were a lot of TV series, but no current seasons were carried.

I do plan to go to RedBox more often, and there are 4 pretty close to me. And for streaming, I am already an Amazon Prime subscriber for shipping, so I'll just use that "free" steam. It'll be a bit of a pain since there aren't any console clients, but I'll just hook the laptop up to the theater. It's a crappy selection, too, but it will get better as more Netflix defectors come on board.

I suppose I could start watching some of the movies I have purchased but not yet unwrapped!! Watching from my own collection; what a crazy idea!!

 

[skizzerflake]

I suppose that the cost is coming into line now that the distributors have realized that they were giving away their movies. I don't like it (duh), but considering that I can stream from my TV, computer or iPhone, anytime, it's a hard convenience to ditch. Compared to my old Blockbuster subscription that was limited to discs, Netflix remains a decent deal.

 

[chronos56]

Netflix Response

I just got off the phone with a very nice young lady at Netflix. I called to register my displeasure at a 50% price increase for 1 disk at a time and streaming combo.

She claimed to have taken down my suggestions and displeasure at what appears to be a greed driven price increase, you cannot justify 50%, period!

I indicated that I will be going to a streaming only option, and that I expected to get better, not more titles, but better content. 5.1 surround for PC users, not just PS3's. As well as more HD streaming.

I indicated that I can easily use Bit Torrent and get good high quality HD 5.1 surround first rate titles but would rather be able to watch them legally.

What surprised me was her comment that in the last 3 days of receiving similar calls I was the only one to call for better quality video and audio. Is everyone using their service that ignorant?

She did indicate that they expect their total number of available streaming titles to double to around 60,000. My response what that was merely doubling the amount of crap, it was the top 200 DVD rentals that need to be available, most are not at this time.

I am not going to cancel my subscription, but I am going to go to streaming only. If I really need a DVD there are alternate services.

Get on the phone, reinforce this with them, it might (but I am not holding out a lot of hope that it will) make a difference.

Jim

 

[picture_shooter]

This is just the beginning. While Netflix raises their rates along with not so cheap in prices to stream it.

Then the quality is not all that and some movies also looks like A$$!

Then while Netflix went up and consumer now only going Streaming, than the wonderful local cable / internet company is gonna know why such heavy bandwidth is being used. They'll (cable / internet) company gonna wanna get on with the cheese and make their bigger cake, so they will raise their rates.

Lets see whom *****es when this happens......

 

[Bob Walters]

...after about 15 years...........there are alot of other ways to receive entertainment....I'm done!

 

[j_garcia]

People keep complaining about this. YES, they raised the price by quite a bit if you want to keep both, but as I said before, we were getting a great deal. Now the price is more in line and people cry bloody murder? Greedy? They were probably losing money on that deal to the consumer's benefit for at least 2 years.

TRY to find another service that offers unlimited streaming AND a large catalog of disc based movies to your door for $16/month. Oh wait, you can't. I don't see everyone jumping all over their freaking cable company because their bill is $100 a month? Give up one trip to Starbucks and get over it.

 

[enrique]

I think i may go back to blockbuster and just nix the streaming.Netflix takes too long for the new dvd's anyways.

 

[picture_shooter]

An alternative

https://www.blockbuster.com/signup/m/plan/c.helloblockbuster/pt.helloblockbuster/r.hp