Netflix hikes prices for DVDs + streaming

[Pappy Knuckles]

http://money.cnn.com/2011/07/12/tech....htm?hpt=hp_t2

Quote:

NEW YORK (CNNMoney) -- Netflix is launching new, unlimited DVD-only plans in the U.S. -- but as a part of that move, it's scrapping unlimited plans that include both physical DVDs and online streaming. Subscription movie rental service Netflix (NFLX) said Tuesday that the changes are meant to "better reflect the costs" of each option. The changes cut prices slightly for customers who only want DVDs, but streaming video will now cost extra. Customers who want both options will essentially have to pay for two plans, raising their overall bill. Netflix's unlimited streaming-only plan will remain at $7.99 a month, while its "1 DVD at a time" plan will also cost $7.99. That means customers who want both streaming and DVDs will have to shell out at least $15.98 a month. That's a big jump from the $9.99 a month customers currently pay for a plan that offers unlimited streaming plus 1 DVD at a time. The changes will be effective immediately for new customers and will take effect September 1 for existing members, Netflix said.

[bkrich83]

Studios are getting ready to really hike their prices for rights to stream their media. I am betting this is why.

[CMH]

I expected this. Was waiting for them to announce it. After they paid $1 MM per episode of Mad Men, there was no way they couldn't hike the prices.

Mad Men isn't even a ratings killer, so imagine the rise in costs for shows in greater demand.

Oh, well, I'll pay the $15. I'll even pay $20 so they'll have me for a while.

[bkrich83]

Quote: Originally Posted by CMH

I expected this. Was waiting for them to announce it. After they paid $1 MM per episode of Mad Men, there was no way they couldn't hike the prices. Mad Men isn't even a ratings killer, so imagine the rise in costs for shows in greater demand. Oh, well, I'll pay the $15. I'll even pay $20 so they'll have me for a while.

I read the rights fees the studios charge are going to go up like tenfold.

[Beantown]

As long as the streaming only package doesn't go up (yet) I'm fine with it.

[CMH]

Quote: Originally Posted by bkrich83

I read the rights fees the studios charge are going to go up like tenfold.

They will. And Netflix isn't going to add too many more customers. They will end up paying more for streaming video than they will gain in new customers.

I'm actually more surprised that streaming-only is remaining the same price since I would expect that would actually rise. But, perhaps Netflix can't justify doing that when many still complain about their streaming options.

By the way, I find the complaints rather silly about the streaming options. One person said they'll go with HBO instead. HBO also has limitations on how many movies they can show and the selection is much less than what Netflix will offer on a consistent basis.

Another said they will switch back to cable. Cable's on-demand service is horrible and the cost for cable is at least twice or three times as much as Netflix stream-only (and that's with a very limited cable plan).

Now this does open the door for some of those cable premium services popping up, but I'm not sure Netflix cares about those. Netflix isn't concerned about providing new-releases to people; they are more concerned with providing as much streaming options as possible and using that model to become a monster in the online streaming market - consider they are also going to start streaming original programming.

Streaming-only is going to cost more soon. I find this move a way for them to cut out the DVD-only people and get more to sign up for streaming so they can convince more studios to offer their content.

[dickey1331]

While I'm unhappy I'll be paying more for both. I'll stay with Netflix for now. If it goes above $20 I may have to adjust.


Do you really care where I sent this from?

[trobinson97]

Got the email yesterday. Yeah, I'll be going streaming only then. I've never been able to sit well with price hikes that don't add to my service. I've noticed the dvd/blu-rays have been sitting around the house for far too long anyway lately.