Let the throttling begin: Netflix raising prices almost double in Sept

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Update 8 24 11
Just noticed Netflix was started enforcing streaming device limits (ie how many devices at once can stream) Guess this is so they can push their "family plan" is that is rumored

Netflix just announced that they are raising the price of their plans. They are splitting off the streaming and non streaming plans.

Stream only will cost $7.99 with no disc option
DVD only with no stream will be $7.99

Both 1 disc out at a time and stream will be $15.98. More discs out raise price more

edited to add more price
2 disc only $11.99

2disc with stream $19.98
3 disc with stream $24.99
4 Disc with stream $29.99

STAYS THE SAME
1 Disc out (2 max per month) $4.99
 
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[quote name='GBmanNC']Netflix licensing costs for their streaming library are going from 200 million to 2 billion over the next 2 years. Don't blame netflix, blame the studios.[/QUOTE]


How about blaming the shitty negotiators for Netflix. They should have know this was a shitty deal for them. Having to raise your prices will only mean more people reducing their services or canceling them all together.
 
I'm not happy about this and my wife and I are discussing if we are changing plans to lower the cost.
 
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[quote name='ssjmichael']Did they really spend that much on Mad Men? Wow..[/QUOTE]

Actually, it is probably a fair bit more than $50 million. But it does cover all seven seasons, of which season five hasn't even started shooting as of yet. The LA Times suggests that netflix is paying $750K to 900K per episode for the streaming rights, and it they keep the same pattern as previous seasons, that would be 91 episodes over 7 seasons.

http://latimesblogs.latimes.com/ent...11/04/netflix-nabs-mad-men-re-run-rights.html

Netflix also threw down $100 million for a brand new series by David Fincher and Kevin Spacey. Maybe it will be awesome, maybe it will suck, but netflix customers are paying for it either way.

http://www.hollywoodreporter.com/news/netflix-outbids-hbo-david-fincher-167882
 
If they're trying to get away from the whole sending DVDs out by mail thing then this might be smart for them but it still feels like a kick in the unmentionables to their customers. Particularly following so close to a previous price hike.

That said, the way Netflix has been blowing through money to get all these new streaming deals this just had to happen. Some of the figures I've seen bandied about are mind blowing...like the aforementioned 900k per episode of Mad Men which is just nuts.

So too with the House Of Cards gamble. I watched House of Cards when I was living in the UK and it was excellent political drama so hopefully a US version is worth the hefty 100 million to them but again, it feels like they're making us pay big bucks for their experiment on a show which is likely to have a somewhat niche audience.

Personally, I'll be switching to the streaming only plan and using RedBox for newer releases. We watch loads of streaming content here and the DVD by mail part was nice but definitely not worth an extra 8 bucks when there are cheaper alternatives out there. I liked having the option to rent TV shows by mail but I guess I'll be going back to the buy used/sell on or swap route for those. There are always other options.
 
Right now, I only use the discs to make up for Netflix's very odd choices in terms of content they have streaming. Anime is a big offender, as it's one of the main things I watch. There's a lot of examples of them having partial seasons of shows, the worst example being one series having Season Two available for streaming, but not a season one!



Having said that, I don't really use the disc service anymore, so oh well I guess. Of course, this just means that other dubious methods of acquiring entertainment just goes up in value I guess.


Yeah, there's alternatives. Hulu Plus sucks because they still show commercials, which is wholly unacceptable for a paid service, and unless I'm mistaken I can't stream Amazon's service over a game console. If I *have* to use my computer for something like amazon, then I might as well use the more dubious options if I'm going to be in front of the computer anyway.



I do wonder if any of these studios even understand that things like Netflix streaming allow them to get new viewers to sample their shows to see if it's something they'd be interested in. Oh well.
 
Streaming still has it issues, likely for next few years. I'm a box set guy myself and those deals are great at certain times of the year. Content providers want more money this will only get worse but hopefully not cable levels.
 
Netflix nice to meet you, Goodbye!

I remember originally joining having 2 out for 13.99 (DVD/Bluray). Then they started charging $3 extra for blu-ray so I then downgraded to 1 disc out a time to bring it to 10.99. Earlier this year they raised it by $1. Fine understandably. Now a 60% increase... After talking with my fiance, we will be cancelling Netflix in August (i.e. prior to the price increase) and moving over to their competitor Blockbuster.

We normally carry a premium anyways (we watch Borgias and Game of Thrones and she watches True Blood); thus this takes over the "streaming" cost... not to mention in HD.

As for the discs, like I mentioned in the other thread...
Netflix 1 out: 9.99 (excludes new releases for the most part)
Blockbuster 1 out: 11.99 (includes new releases AND gives 3+ month games)
 
[quote name='momouchi']I hear it is mainly because the content providers jumped their prices up by 50 to 100 times the original contract price. It's really lame that Netflix is going to suffer just to try keeping up with costs. I'm going to keep streaming only for the time being since I have a lot of TV shows I want to watch.[/QUOTE]

That's exactly what's going on. Studios are panicked because no one is buying their DVDs. They are trying to make that lost revenue up by significantly increasing the price that Netflix pays for the right to stream that content. I really have no problem with it. I'm dropping the DVD subscription and will just use Redbox if I want a DVD
 
Can someone explain how Amazon Prime Video works? It seems like the only way I can get it to stream to my 360 is by downloading the video first onto a computer. Do the devices that support it natively allow you to browse right on the device?
 
Wow just as I was about to buy a subscription this happens...
Perhaps if enough (active) customers boycott the service they'll do something but there would have to be massive support.
 
I'm going into the DVD only camp. The Netflix streaming was cool at first but their selection hasn't improved or gotten more abundant as the months have gone by. Needless to say I'd still rather watch a Blu-Ray than stream too, so it's discs only for me.
 
I already canceled Netflix a month ago because of the shit streaming picture quality. Now I see that they're trying to make their subpar service more expensive? HAH! Let's see how many suckers pay for this crap.
 
Looks like my Netflix is getting cheaper! Goodbye Netflix Instant Streaming! I never knew ya! My 3 disc plan just got cheaper! Thanks!
 
[quote name='tranceFusion']too bad you guys didn't drop before all their competition went bankrupt..[/QUOTE]

This is the classic Standard Oil or Walmart model . . . kill the competition and then raise prices.

Luckily my Blockbuster store is still around and I love their by mail and instore plan (including one game out by mail.)

I've had Netflix (one disc and streaming) for DVD documentaries (don't need Bluray) and some streaming. So, I'm cancelling.
 
I'll start by saying that I am getting a little tired of them raising their rates once again. Since I've joined Netflix a couple of years ago, I've been hit with a couple of increases. One was when they started to charging extra to have Blu-ray access and once was the across-the-board increase they hit us with us last year.

But as someone else mentioned, this is part of their strategy, which they mentioned some time back. They want to phase out the mailing aspect of their business and focus on the streaming.

I will definitely be dropping the DVD portion of my subscription. A lot of times, the DVD ends up sitting on my desk for a week or two. If I want to rent something really new that isn't available on the instant stream, I will go the Red Box.
 
well let's see..I get new releases a month later, their streaming content is ok, not HD, prices are going to be double, their website is still the same, basic. nah no go.
 
[quote name='Darknuke']lol that will NEVER happen... Regardless, BOOO @ the increased prices[/QUOTE]

Less to do with profit and more to do with matching their increased costs. Mailing costs are going up soon, huge demand for inventory since they no longer have competition, and more employees to stuff/open envelopes.
I've always found it utterly fascinating that people think price increases are purely for the purpose of gouging.
 
I don't take issue with separating the plans or even with a price increase. My real issue is they are not offering any kind of bundle discount if you want both plans or even offering long term subscribers some type of temporary discount to ease into the increased price. A 60% increase on the streaming, 1-DVD at a time plan is a bit much, why not offer a bundle plan for $13/month.
 
[quote name='nasum']Less to do with profit and more to do with matching their increased costs. Mailing costs are going up soon, huge demand for inventory since they no longer have competition, and more employees to stuff/open envelopes.
I've always found it utterly fascinating that people think price increases are purely for the purpose of gouging.[/QUOTE]

Nevermind the loophole that Netflix was using in the first place striking a deal with STARZ and other 3rd parties for content that is now attempting to be closed by studios who want "their share" of the pie.

I find it continually amazing that the studios in movies, tv, and music are not more easily vilified when they ignored these markets even recently after now at least 12 years of knowing it is there and can be monetized.

The real issue here is that the studios with the original rights had caps on certain content to a licensed third party that had their content shown on over the air and pay cable channels. These licenses were then leased to places like Netflix for next to nothing... and now that ends.
 
[quote name='ssjmichael']

I'll most likely just switch to streaming only, but might also get the $4.99 disc plan as it would still work out cheaper than renting newer releases. Two a month by mail would be ok[/QUOTE]

That's what I'm considering too. I only average about 2 - 3 DVDs a month anyhow now, sometimes just 1. I still have use for the DVD side of things though so not really wanting to give it up entirely, but this price change does stink. At least they didn't try to sneak it in slowly over time, they basically just went "OK this is what it's going to cost now, deal with it". :p
 
[quote name='bfett9']Wow just as I was about to buy a subscription this happens...
Perhaps if enough (active) customers boycott the service they'll do something but there would have to be massive support.[/QUOTE]

With less users, comes higher prices or less content. Netflix really has backed itself into a corner for continuing with their streaming effort including these new/older shows they want to broadcast first. In addition, the studios now want more money in new contracts. Only time will tell if Netflix doesn't fail based on this new model.
 
I keep hearing about how their new deals are "100 times" what they were before. Can someone please give me specific examples with sources of their contracts, how long they were, how much, etc..

I didn't look thoroughly into it, but the $2 Billion dollar figure people are throwing around is a speculated amount and from what I can tell, much of it is from from an agreement with Epix TV which they didn't seem to have any agreements with previously. I believe it's also a 5 year contract, I don't know how long the other agreements were for previously with other companies/studiosr. Again I couldn't find many specifics here so I'd appreciate any input here
 
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[quote name='lordopus99']With less users, comes higher prices or less content. Netflix really has backed itself into a corner for continuing with their streaming effort including these new/older shows they want to broadcast first. In addition, the studios now want more money in new contracts. Only time will tell if Netflix doesn't fail based on this new model.[/QUOTE]

The higher they hike up the price (mark my words the price won't stop here) the more customers they lose. But if they lose a majority of their following quicker they will have to act because the consumer won't stand for it and they want their bottom line.
 
I think I will at a minimum drop the streaming aspect. I barely use it since I'm mainly into new releases they don't even get until like a year later if that it seems (on the streaming part). Also, COMCAST has a cap on data usage, so I'm not sure if I ever hit it, but if I started to stream HD quality streams every night, I might approach it.
 
I still have a very active Blockbuster store . . . so for others this might not be as good . . .

I get 3 DVDs or Blurays out a time (one of these can be a game and I've been able to have out GOW3 for a few months and Mario Galaxy 2 at one point) for $17.99 per month.

This includes 5 instore exchanges per month (for impulse rentals).

Recent releases are easy to get on Bluray but just calling the store to hold a copy.
 
[quote name='bigdaddybruce44']
But as someone else mentioned, this is part of their strategy, which they mentioned some time back. They want to phase out the mailing aspect of their business and focus on the streaming.[/QUOTE]

I think they're really going to have a hard time doing that successfully anytime soon.

1. Studios aren't going to be quick to let new releases on streaming rental services. It really kills sales. Why buy when you can stream it anytime you want is the way many non-collector types look at it. While they'll still buy things that are disc rental only so they can have it around to watch anytime they want rather than waiting a few days for a disc to come in the mail.

2. As more ISPs start adding data caps, the amount of movies (especially HD movies) people can stream per month will be limited.

3. Bandwith in the US still sucks, so we're a long ways off from having streaming be an acceptable option for video philes as HD streaming still isn't near Blu-ray quality. Though to be fair they probably don't care about the niche of people who obsess over a/v quality anyway.


For me it's really only the first as I only watch a couple movies a week, and I'm not a videophile. So I'd happily go streaming only right now if they were putting every new release up there. But they hardly get any currently, so I'll just got disc only for now as I'm not really branching out and watching many older movies, tv shows, documentaries etc. these days as I can't even keep up with new releases that interest me.
 
So I'll now be paying close to $20 for streaming and Blu-Rays....well, combining that with Hulu and watching every other show I want for free on the Networks' sites sure as hell beats the $100+ DirecTV wants from me.
 
[quote name='gldoorii']So I'll now be paying close to $20 for streaming and Blu-Rays....well, combining that with Hulu and watching every other show I want for free on the Networks' sites sure as hell beats the $100+ DirecTV wants from me.[/QUOTE]

I could never get rid of cable for SPORTS alone. No Fox Sports or ESPN would kill me.

I may consider Blockbuster.com again. I heard they have 3D BluRays also. Although, they would be $11.99 /month for 1 movie, or $16.99/two
 
[quote name='sobishop']Two words CAGer's... Columbia House. That is all.[/QUOTE]

Does anyone think it's sad that the first think I thought was "Hold on now, baby, I'm just not ready for that kinda commitment!" ?

Oh, and I don't see how Columbia House can be any kind of a good deal (especially for a CAG) past any initial "signing bonuses"....

As for Netflix, I don't know that I use the streaming enough to care... although I do love to watch vintage SNL and a number of other things. I'm going to keep the DVDs for a bit longer as I want to keep watching "Life on Mars" and some other British TV shows that I have yet to see. Well, at least I never wasted the money upgrading to Blu-rays...
 
I thought of switching from Netflix to Hulu or something to get my streaming (so as to boycott Netsucks for this shitty rate hike) but I checked out a free trial of Hulu +.... wow and I thought netflix was bad. commericals in a paid for TV show??? unacceptable... only good thing going for them is subtitles and original language for anime shows
 
[quote name='larrythefatcat']Does anyone think it's sad that the first think I thought was "Hold on now, baby, I'm just not ready for that kind of a commitment!" ?

Oh, and I don't see how Columbia House can be any kind of a good deal (especially for a CAG) past any initial "signing bonuses"....

As for Netflix, I don't know that I use the streaming enough to care... although I do love to watch vintage SNL and a number of other things. I'm going to keep the DVDs for a bit longer as I want to keep watching "Life on Mars" and some other British TV shows that I have yet to see. Well, at least I never wasted the money upgrading to Blu-rays...[/QUOTE]

That whimsical post went completely over your head I take it.
 
[quote name='nasum']Less to do with profit and more to do with matching their increased costs. Mailing costs are going up soon, huge demand for inventory since they no longer have competition, and more employees to stuff/open envelopes.
I've always found it utterly fascinating that people think price increases are purely for the purpose of gouging.[/QUOTE]


They already raised rates a couple of bucks six months ago
Postal rates won't go up until next year at the earliest. And the average number DVDs per customer they mail out each month is going down, so their postal costs per customer are actually dropping.

Yes, they've had to spend more a more DVDs and employees due to growing their paying customer base by 42% in 2010, but their gross margins actually went UP in 2010. So yes they are spending more on those new customers, but guess what....they are collecting more for it.

Here is their annual report for 2010
http://ir.netflix.com/secfiling.cfm?filingID=1193125-11-40217
Pages 25 and 26 cover customer costs

Jacking up your rates up 15-20% in January and then doing even bigger increase in Sept in a industry with fairly steady expenses (on the DVD side, on the Streaming side not so much), yeah, that's probably going to be viewed as gouging by most people.
 
Second price hike in a year, and the second time I will cut my plan down. Went from 3 to 2 discs last time. This time, I'm cutting DVDs entirely. I've been watching more streaming anyways and Redbox can fill the occasional DVD.
 
My girlfriend and I weren't watching that many movies per month, so we canceled Netflix a while ago. Our area has Blockbuster Express machines everywhere now, so we started using that and now we end up getting more movies for less money since it seems like there's always a rent 2 get 1 free or free 1 night rental codes floating around. Since we pass a machine regardless of which direction we're going, gas doesn't really play into the price.
 
I'm a bit torn on streaming. On one hand, blu-ray has spoiled me to the point where I can't stand watching a good movie in SD anymore. But for episodes of old TV shows I love it, or perhaps an impulse viewing of a bad movie (or MST3K episode). These are the kind of things I wouldn't necessarily get around to renting on disc, but I love having convenient access to them at any time.

Meanwhile, despite being spoiled by blu-rays, I'm taking forever to actually watch my disc rentals because my own collection has been growing so rapidly. It's safe to say I buy more movies than I rent in a month. Hmm. Just by writing this out and reading it back to myself, I think I realize what I need to do, lol. Thanks thread! :p

[quote name='Xizer'] Netflix no longer buys new Blu-ray releases and I finally had it with them.[/QUOTE]Can anyone elaborate on this statement? It's the first I've heard about it and I'm not sure if I'm reading it correctly.
 
[quote name='BustaUppa']
Meanwhile, despite being spoiled by blu-rays, I'm taking forever to actually watch my disc rentals because my own collection has been growing so rapidly. It's safe to say I buy more movies than I rent in a month. [/quote]

Just the opposite has happened to me since I joined Netflix back in 2008 or whenever.

I used to buy a ton, but then realized I was mainly only watching my rentals and hardy ever touching anything in my collection.

So I cut way back on what I buy, and pared down my collection a bit getting rid of DVDs I hadn't watched in years etc.

[quote name='BustaUppa']
It's the first I've heard about it and I'm not sure if I'm reading it correctly.[/QUOTE]

They still get Blu Rays of new releases, but it seems like they haven't been picking up Blu Rays of older movies when they come out on Blu.

For instance, they only have the Lord of the Rings Extended Edition on DVD, even though it came out on Blu last month.
 
I use stream much more than I use the DVD mail plan, so I'm just dropping down to stream only. Shame that they had to do this, but I'd rather see the movie I want instantly than wait a few weeks to see it anyway...
 
I just downgraded to streaming-only a couple of weeks ago, after realizing the one physical DVD we had out had been sitting around unwatched for 2-3 months. We use their streaming on a daily basis, there's a ton available that I either haven't seen or want to rewatch. Guess this sucks for those dependent on both formats, but it doesn't affect me at all.
 
If Netflix thinks this will get me to switch to streaming only then they are mistaken. Hulu is cheaper and has more current content. With Hulu, Redbox, and the library; Netflix can easily be canceled.
 
[quote name='dmaul1114']
They still get Blu Rays of new releases, but it seems like they haven't been picking up Blu Rays of older movies when they come out on Blu.

For instance, they only have the Lord of the Rings Extended Edition on DVD, even though it came out on Blu last month.[/QUOTE]

LoTR could be hit with 28 days hold like all other new titles (released 6/28/11 - 15 days ago). New Line is under Warner Bros, who has a 28 hold period with Netflix.

My guess is the guys comment had to do with the 28 day hold period that almost all studios' new releases at this point are doing.
 
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