Netflix hikes prices for DVDs + streaming

[CMH]

Re: Netflix hikes prices for DVDs + streaming

Does it make it right? How is that, in any way, justifying actions by these large corporations?

And that's not 100% true, at least in my experience - many times I've read my rates will go up because of increases in cost and why - and I'm notified of it via email (TimeWarner).

But Netflix did tell us they were raising costs months prior to the bump. I do agree they could say more on why they are doing it, though I wonder how much of the internet already did that for them.

It was very awkward to hear from CEO Hastings which definitely supports your thoughts - he should be someone we all already know.

True...we should always be evaluating the worth of Netflix's service.

That's kind of what I'm saying. It's the customer's job to evaluate the service; not Netflix's for the customer. I mean, Netflix wants to make sure their customers are happy, but the customer can't expect Netflix to make them happy. Customers have to simply ask themselves "am I happy with Netflix?" If you're not, cancel. If you are, stay.

[Fresh Tendrils]

Re: Netflix hikes prices for DVDs + streaming

Does it make it right? How is that, in any way, justifying actions by these large corporations?

And that's not 100% true, at least in my experience - many times I've read my rates will go up because of increases in cost and why - and I'm notified of it via email (TimeWarner).

Prices for services and goods vary all the time. It shouldn't be up to the company to explicitly state everything that lead to a price increase, because if you spend a couple seconds to think about things it is mostly common sense. Plus, it is the consumer's decision to evaluate a company's product/service and decide if that good is worth that value or not. A price increase doesn't change that fact. If Netflix were to come out and explain things, people would still complain. They could say they've added more selections, but people will say those titles don't interest them. They could promote how they've added streaming access to basically any device with an internet/broadband connection, but people will say I don't use those things. No matter what a company does to explain a price increase the answer is never going to satisfy enough. While it makes sense to people who think objectively (and let's be honest, we will know what a price increase is for whether or not a company tells us), a price increase never sits well with the majority of America even if the value of the service increases.

[Pared]

Re: Netflix hikes prices for DVDs + streaming

Your whole response in a nutshell is "they don't have to do anything if they don't want to."

You're right - they don't. This much is obvious, no? That doesn't really need to be stated - we're discussing how Netflix should have handled the situation. Obviously the prices were going up - people knew this already as CMH mentioned. And consumers did their due diligence - they dropped the service in large numbers.

But to act as if the way they handled the situation couldn't have been better? That's silly. This is where PR comes into play - it's their job to frame the price increase as something that isn't so bad. Guaranteed people would have dropped the service but it also would have been less than what it was.

[23]

Re: Netflix hikes prices for DVDs + streaming

I agree the way its been handled has definitely left a sour taste in people's mouth's

What you dont want to do is burn bridges....

http://www.seattlepi.com/business/ar...al-2183638.php

An analyst believes he's hit upon the reason that Netflix Inc. is splitting its DVD-by-mail service from its Internet streaming service: It's setting up the online portion for Amazon.com Inc. to buy it.

Wedbush Morgan analyst Michael Pachter said he, like many others, had struggled to understand the motivation for Netflix's Solomonic separation, which was announced Monday. The DVD-by-mail service will be called Qwikster, and its billing, queue and website will be separated from the streaming service which will keep the Netflix name. Customers greeted the announcement with jeers.

Pachter argues that the streaming service would be highly valuable to Amazon and a good complement to its existing Amazon Prime service. However, buying the DVD-by-mail portion would present a problem, because it has many warehouses around the country that send out DVDs. Amazon doesn't want to have a substantial business presence in more states, because it then has to collect sales tax on sales to those states, Pachter wrote in a Thursday research note.

Netflix and Amazon didn't immediately respond to requests for comment.

Pachter raised his price target on Netflix shares from $110 to $155, a figure he said is based on a $25 value for the DVD business and a $130 per share for the streaming side.

Netflix shares rose $2.17, or 1.7 percent, to $130.67 in midday trading, as the Standard & Poor's 500 index was down 3 percent.

Other analysts have speculated that separation is a prelude to Netflix spinning off the physical DVD business.

[23]

Re: Netflix hikes prices for DVDs + streaming

...and this is what happens, you start opening the door for others to come in

http://m.engadget.com/nock/article.d...ategory=&type=

Quote: Dish Network, Blockbuster unveil Blockbuster Movie Pass all-inclusive entertainment service
BY RICHARD LAWLER
POSTED SEP 23RD 2011 01:07PM

At its "a stream come true" event today, Dish Network finally revealed its plans for a subscription video service called Blockbuster Movie Pass, due to launch October 1st. That includes access to discs (movies and games) by mail, streaming video to the TV and PC, and linear TV service from Dish, all in one package. Blockbuster Movie Pass is clearly being pitched a Netflix / Qwikster competitor, however it's currently only available to Dish Network subscribers for $10 / month. That tie to pay-TV makes it a TV Everywhere play pulling Dish's various properties under one umbrella, but doesn't significantly shift the online video landscape. New subscribers to the America's Best 200 package will get free access to a year, while those schlubs stuck on cable or without pay-TV service can simply look on with envy. The last slide shown does invite non-Dish subscribers to "stay tuned," so if you're really looking for a Netflix alternative... stay tuned. Check the gallery to see the slides for yourself, well update with more press materials once they're available -- now included with all the details after the break.

[CMH]

I heard about the Netflix to Amazon rumor and it wouldn't surprise me. Amazon is a monster and Netflix probably already knows they are going to have to compete with other similar services (ie Dish Network's Blockbuster program).

Can Netflix survive in that fight? I doubt they can especially if the competitor is Dish.


Sent from my mobile device.

[Pared]

Re: Netflix hikes prices for DVDs + streaming

A takeover of Netflix by Amazon would be INCREDIBLE.

Would give their tablet a much needed push!

[trobinson97]

Re: Netflix hikes prices for DVDs + streaming

A takeover of Netflix by Amazon would be INCREDIBLE.

Would give their tablet a much needed push!

Not to mention would make Prime even more of a deal, one that I'd be more than willing to invest in.

[CMH]

Re: Netflix hikes prices for DVDs + streaming

It would be a deal but there's no way Amazon Prime stays $79/year for Streaming and unlimited free two-day shipping if it also includes Netflix's library.

But, I'd pay approximately $100/year for that. Would be awesome.

[trobinson97]

Re: Netflix hikes prices for DVDs + streaming

It would be a deal but there's no way Amazon Prime stays $79/year for Streaming and unlimited free two-day shipping if it also includes Netflix's library.

But, I'd pay approximately $100/year for that. Would be awesome.

I assumed it would only be Netflix and not Quikster.

[CMH]

Re: Netflix hikes prices for DVDs + streaming

I assumed it would only be Netflix and not Quikster.

Yeah, only Netflix, but what I'm saying is that right now, at $79/year, Amazon Prime would cost $6.58/month for content Netflix is currently charging $7.99 to watch plus free two-day shipping on items from Amazon

It seems to me that Amazon would bump the price to at least $7.99/month considering they also have to now pay out for content Netflix had streaming rights to like Mad Men (which costs $1 million per episode).


*This is all being said in a present tense that does not exist.

[snepp]

Re: Netflix hikes prices for DVDs + streaming

They could offer Prime in various tiers.

[Fresh Tendrils]

Re: Netflix hikes prices for DVDs + streaming

BAM:

Dear Customer,
I have big news for Amazon Prime members - we've just signed a deal with FOX to add a broad selection of movies and TV shows to our unlimited instant streaming service later this fall. The new additions from the FOX library include 24, Arrested Development, The X-Files, Ally McBeal, Buffy the Vampire Slayer, and - available on digital video for the first time - The Wonder Years. We now have deals with CBS, NBCUniversal, Sony, and Warner Bros, and adding FOX will bring the total to more than 11,000 movies and TV shows available for unlimited instant streaming.
Since launching earlier this year, we have now doubled the number of titles available in Prime instant videos, and there's still more to come. Prime membership remains $79 a year, and of course features our unlimited free two-day shipping on millions of products. Prime is one of the best values anywhere.

The Wonder Years?!?! Oh hell yes.

[aukevin]

Re: Netflix hikes prices for DVDs + streaming

Amazon needs to get on consoles before I get excited about them.

[cjonesfan921]

Re: Netflix hikes prices for DVDs + streaming

What exactly is Amazon Prime?

EDIT: Nevermind, Google helped me out. http://www.amazon.com/gp/help/custom...odeId=13819211