Netflix Hikes Prices, Adds DVD-Only Plan

Well i just got an email that my $11.99 plan is being broken up into two plans

Plan1, unlimited streaming (No DVD) for $7.99 a month
Plan2, Unliimited DVD's with Blu-Ray (1 out at a time) for $9.99 a month

I can keep both plans for $17.98 per month

This is fucking BS $6 per month and not getting anything more for my money, BS to the max
 
nutzo said:
Profit does not equal greed.
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When you're already that rich cranking profits up even more is greedy.

nutzo said:
It's thier company, and it's suppose to be a free market. They are free to charge whatever they want, and I'm free to drop the service and not pay the higher prices.
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Sure its their company and they can do what they want with it, I didn't say otherwise, but that is no good reason to respect their decision to jack up prices given the circumstances. Also it isn't a free market and never was, nor would anyone sane want it to be outside of BS ideological extremism.
 
dudewth said:
That's not true. You're misquoting it. EPS != margins.
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That is what headline and article said. Go sue the story writers if you like then if you want to quibble. Either which way it doesn't undermine my main point, which was that they're making plenty of money and this is just them being greedy which is indefensible. If you're gonna go full retard with Gordon Gecko-esque rhetoric about free markets and profit and GREED IS GOOD or something even vaugely along those lines then enjoy your sociopathy I guess cuz' I'm not interested in replying.
 
I'm torn between cancelling and just keeping streaming. I just wish they'd get the newer movies on there quicker. They don't have near as much on the stream as they do for the rental.
 
So glad I saw this. I just cancelled. No fucking way I am paying that type of increase. Good luck
 
mesyn191 said:
When you're already that rich cranking profits up even more is greedy.


Sure its their company and they can do what they want with it, I didn't say otherwise, but that is no good reason to respect their decision to jack up prices given the circumstances. Also it isn't a free market and never was, nor would anyone sane want it to be outside of BS ideological extremism.
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heatlesssun said:
The thing is free often sounds better than it really is and the cost of Office is pretty low if you really NEED it. At student can get Office for like $80, that's just not a lot of money for an tool that its instrumental in one's educational career..
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i've used google docs, and quite frankly I'd be happy to use it as a primary. I just don't want it all to be in the cloud. You seem to be talking about companies, etc. The average people probably wouldn't use much past Word or Excel.
 
Ah crap, I should've replied to the top quote first... Anyway, I was going to say, they've also expressed their want for going full streaming. This could just be a step in that direction, to force it that way. Making money at all is "greedy."
 
It would be different if they had a lot more movies in 5.1 for streaming but they have very few. I will be canceling my acct.
 
I remember when they started we WILL carry EVERY DVD.
Now they just get in new blu ray and dvd releases and F it seems to be their attitude.
90%+ of the new stuff is pure crap I wouldn't even waste the time to click yes.

They will soon feel the pain from all the caps and to me they are happy to see it. More for less seems to be their motto now.
 
thecrafter said:
What are you talking about man? Do you have any idea how much it costs to sign up with the movie studios? It's not free. Postage isn't free, tech support isn't free, technology isn't free....

One movie in the theater (don't even try to tell me how much better a theater is. I'll spill soda on your floor and kick the back of your seat in your house while you watch a movie, don't even need to pay me. I'll even have a tall guy sit in front of you for a small fee) costs $10 here. So for the price of one and a half movies, you can watch as many movies as you want, hassle fr.. err I'll stop here, I sound like a salesman
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Glad someone gets it.
In recent news the movie studios have been increasing the licencing for their product. They want to cash in on something NetFlix created a demand for. What can they do accept to pay what they ask, the price has to go up. When the farmer raises his prices on watermelons, the grocer isn't going to eat the extra cost.
Personally I'm torn about which way to do on this.
We see very few movies in the theaters anymore because 90% of whats showing is CRAP. Notice how show times reflect the preview/commercial start time and not the actual movie start times anymore?? We saw Cars 2 over the weekend and we had to sit through 30 minutes of BS commercials and previews of movies I wouldn't watch for free.
We have No problems "waiting for DVD" on new movies.
When it comes to NetFlix streaming; all I find myself watching are old movies occasionally and documentaries that usually first run on PBS. I really won't miss it. Think I will drop the streaming because the video quality is still pretty poor compared to getting a DVD.
 
mesyn191 said:
That is what headline and article said. Go sue the story writers if you like then if you want to quibble. Either which way it doesn't undermine my main point, which was that they're making plenty of money and this is just them being greedy which is indefensible. If you're gonna go full retard with Gordon Gecko-esque rhetoric about free markets and profit and GREED IS GOOD or something even vaugely along those lines then enjoy your sociopathy I guess cuz' I'm not interested in replying.
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I'm glad you're not going to respond, so I can just make my point and be done with this. Their profit margin has only marginally increased since they went public. That was my point. Earnings per share has gone up because their absolute profit number has gone up but not as a percentage of revenue no matter how you look at it (gross margin, operating margin or profit margin). That implies that they've been adding customers like crazy but haven't become more efficient in their operations.

The street loves to see 3 things: sales growth, margin growth and increased turns. They've got sales growth and they've been improving turns, so they decided to go for the trifecta and try to increase margins. There is a lot of expectation built in to the stock price and I think they're just trying to keep up with that.

I'm not saying their price increase is a good thing, but there is a logical (crazy, I know) explanation for it. I'm either going to switch to blockbuster or remove streaming from my plan personally.
 
Seems to me that they are getting what they wanted.... decreased DVD demand. Most folks in this thread and other places around the interwebs are dropping to streaming only.

Of course, within a year I would wager, most peoples internet access rates will go up due to all things streaming, cloud ect... Grab your ankles and bite your teeth.. things are going to only get worse.
 
I think they are raising rates as an experiment. If their subs go down, they will bring those numbers to the table when license contracts come up. If sub stay the same or improve, they will just pay more for licensing.

Either that or they set the streaming hook and is now reeling us all in:eek:
 
in all honestly this is probably the start of the end for netflix as the premier streaming content provider.

Over the next year they will be gouged by the content providers. The Cable companies will negotiate streaming rights on top of what they already license.

The cable companies will then go tiered data and and charge out netflix like services, while offering their own box/streaming which does not go against tiered data rates.

Will be interesting to see how insane the content providers become. I have a feeling they think their content is 2x as valuable in todays instant/streaming days.

We may see a serious slow down in streaming, while content providers charge too much. Netflix will stick to the "cheap" content to keep costs down. Cable companies will struggle to offer all content and other content will be help back so the content provider can make more $$$ with it directory.

They will find people don't want 15 services for their media, possibly 2-3
 
I am dropping streaming. When I watch a movie, I want it to be at the best possible resolution and will wait a few days for that.
 
I only watch maybe 1 moive a month via streaming. So its not worth it.

I'm canceling everything next month.
 
netflix raises its prices and the QQers come out of the woodwork

do you have any idea how much value you're getting for $16/mo?

cancel your service and go back to cable/blockbuster to find out

idiots
 
Shwick said:
netflix raises its prices and the QQers come out of the woodwork

do you have any idea how much value you're getting for $16/mo?

cancel your service and go back to cable/blockbuster to find out

idiots
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The problem isn't the value for $16/mo...the problem is that you got the same "value" for $10 a month, and now it's $16. This isn't a buck or two...this is a 60% increase.

as you would say...idiots...
 
Shwick said:
netflix raises its prices and the QQers come out of the woodwork

do you have any idea how much value you're getting for $16/mo?

cancel your service and go back to cable/blockbuster to find out

idiots
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It is a good service. However people are upset that this is the second price hike in a year.

I love Netflix. The second day into my free trial I bought a WiFi capable player just so I can use it. I got my parents hooked on it. I have everything in my apartment Netflix ready. I use the DVD they send me for things that are not available to stream and that is rarely. Our current DVD from them has been here for a month and a half. Its not cost effective for me to spend $6 extra a month for a DVD plan I rarely use but like the option to use if I want to for little cost ie: $2/month.
 
kirbyrj said:
The problem isn't the value for $16/mo...the problem is that you got the same "value" for $10 a month, and now it's $16. This isn't a buck or two...this is a 60% increase.

as you would say...idiots...
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ok its a 60% increase

what are you going to do about it
 
Shwick said:
ok its a 60% increase

what are you going to do about it
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Look elsewhere. As others have said, RedBox/Hulu Plus, etc. If I can't find the same value, I guess I'll have to pay $16/mo. But I wouldn't be looking elsewhere if it wasn't for a 60% increase.

I understand costs have gone up due to licensing fees from studios. I'm a big fan of capitalism. They are passing the costs onto the consumer, and, as the consumer, I am looking elsewhere for a better deal.
 
Shwick said:
ok its a 60% increase

what are you going to do about it
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People are cancelling; that's what they are doing about it. I'm glad you are the type of of consumer that cool with 60% price hikes. Good for you. Would you be cool with your gym membership going up 60% "just because"? How about your auto insurance? It's not like you are getting more for your money. You are getting the same service you were getting a month ago... but @ 60% more cost.... That's the problem.
 
Lavacon said:
People are cancelling; that's what they are doing about it. I'm glad you are the type of of consumer that cool with 60% price hikes. Good for you. Would you be cool with your gym membership going up 60% "just because"? How about your auto insurance? It's not like you are getting more for your money. You are getting the same service you were getting a month ago... but @ 60% more cost.... That's the problem.
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if my gym membership was normally $10/mo and went up to $16/mo yes i would be ok with that because all other gym memberships are $60/mo, just like cable

this is a dvd/blu ray rental and streaming service in one for $16/mo

unfortunately it will probably be destroyed by bandwidth caps and content providers but i would take it while you can get it
 
Shwick said:
if my gym membership was normally $10/mo and went up to $16/mo yes i would be ok with that because all other gym memberships are $60/mo, just like cable

this is a dvd/blu ray rental and streaming service in one for $16/mo

unfortunately it will probably be destroyed by bandwidth caps and content providers but i would take it while you can get it
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So if your gym membership is 60/mo now and on September it went to 96/mo? Keep in mind the only change in the plan is how much your paying for it. The service will not be any better.

Im cancelling my account and going back to torrenting.
 
German Muscle said:
So if your gym membership is 60/mo now and on September it went to 96/mo? Keep in mind the only change in the plan is how much your paying for it. The service will not be any better.

Im cancelling my account and going back to torrenting.
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no thats not the right analogy. I said gym membership as $10/mo because it represents the incredible savings vs a normal gym membership of $60/mo.

You can't just say a gym membership of $60 going to $96 -.-

just stick with: netflix still cheap cable still expensive
 
I really do love all the whining...
a) they broke apart the plans so if you don't use streaming, or you don't use the dvd, it's cheaper now. If your using both, then yeah the price went up, but 7.99 for all you can stream ... and 7.99 for a month of movie rentals is still just as viable pricing wise as it was before hand.
b) it's not for netflix's profit, when the studios are renegotiting, and prices are going from $150 million in licensing, to over 1 BILLION in licensing, where do you think the money is going to come from to keep providing? Hulu is going to end up with the same, cuz if the studios get away with it with netflix, they will do the same to the other companies when the contracts are up.
 
LordCalin said:
I really do love all the whining...
a) they broke apart the plans so if you don't use streaming, or you don't use the dvd, it's cheaper now. If your using both, then yeah the price went up, but 7.99 for all you can stream ... and 7.99 for a month of movie rentals is still just as viable pricing wise as it was before hand.
b) it's not for netflix's profit, when the studios are renegotiting, and prices are going from $150 million in licensing, to over 1 BILLION in licensing, where do you think the money is going to come from to keep providing? Hulu is going to end up with the same, cuz if the studios get away with it with netflix, they will do the same to the other companies when the contracts are up.
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Why does the consumer care about where the costs come from? All that matters to most is that costs are going up 60% in a tough economy. If they lose enough customers, both Netflix AND the movie studios lose out. Hopefully they lose enough to realize this, though I doubt the movies studios are going to come to their senses until their entire industry collapses.
 
I just dropped my DVD rental portion since it was not being used that much away. Still at 7.99 a month for the hundreds and hundreds of gigs of streaming I do monthly I'll still be using them.
 
LeninGHOLA said:
Why does the consumer care about where the costs come from? All that matters to most is that costs are going up 60% in a tough economy. If they lose enough customers, both Netflix AND the movie studios lose out. Hopefully they lose enough to realize this, though I doubt the movies studios are going to come to their senses until their entire industry collapses.
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yes i feel like they would like to see netflix go out of business or raise it to the same price as cable

why would content providers make deals with netflix that garnered less profit than cable?

You could say the service is worse and not as seamlessly integrated as cable but all they see are less dollar signs when signing with netflix.
 
Volkum said:
I'm surprised to see so many people canceling the DVD/bluray rental and keeping the streaming. You guys are really that satisfied with the streaming selection? I still find it quite lacking.
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I agree, the DVD's are much more up to date then the streaming.
Most of the streaming titles are vintage 1990's or older.
 
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