Netflix Announces New Pricing, DVD & Streaming Face 60% Increase

[tjanuranus]

Netflix Announces New Pricing, Subscribers Who Want DVD & Streaming Face 60% Increase

https://www.slashfilm.com/netflix-announces-pricing-subscribers-dvd-streaming-face-60-increase/

The free ride had to end sooner or later. Looks like it is sooner. For the past seven months, even after a price increase, Netflix has been the best deal in movies for US subscribers, as a monthly subscription priced at $9.99 allowed customers to have one DVD out at a time and watch unlimited streaming content at the same time. That wasn’t free, exactly, but it was a pretty damn cheap way to consume a great many movies every month.

That is changing slightly. The company today announced new pricing that will split DVD and streaming subscriptions into separate tiers. The cheapest plans will be $7.99 for unlimited streaming each month (remaining the same after the last pricing changes), and $7.99 for a new plan offering only DVDs, with one out at a time. So instead of paying $9.99 for both, you’ll now pay $15.98.

For new members, this pricing takes effect immediately. For existing subscribers, the changes go into effect “on or after September 1, 2011.”

The news comes from the official Netflix blog, which spins the price change as being the ‘lowest ever’ for unlimited DVDs. And that’s true. If you have no interest in streaming, or no interest in delivery of physical media, this won’t be a big deal. And, frankly, if you have interest in both, there’s no argument in which sixteen bucks a month is an unreasonable price to pay for the content available on Netflix. But if you want a lot more DVDs delivered per month, your prices will be escalating. And how much will a blu-ray plan be? That’s data we don’t have now.

(Netflix was down for maintenance at press time, so I couldn’t make a new subscription to check. The blu-ray surchage that applies to current plans may not be changing.)

After Netflix seemed to really de-emphasize physical media in the past year, this stands as a definite change of plan (ahem) as explained in the blog entry:

Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail, led by Andy Rendich, our Chief Service and Operations Officer and an 11 year veteran of Netflix.

There are many possible reasons for these changes, but in the end what will matter is what effect this has on the overall catalog(s) available via Netflix.

Given the company’s dominance of the DVD delivery and streaming marketplace, I can’t pretend to be surprised by these changes. A price hike was basically inevitable. Now we’ll see what it does to the Netflix stock price at the end of the day today, and the company’s customer base over time. So will the new prices change your interest in Netflix? Will you desert for other options?

[tjanuranus]

this may cause me to cancel my dvd plan. I just wish they would get on the ball with the streaming service. It's not that great at the moment and with the stock price going up and up the company is doing well!

[Adami]

Free Market Fail.

[Gadough]

This doesn't look like it affects me at all. I only use Netflix for its instant streaming. If a movie I want to watch isn't available to stream, well, tough shit for me. I don't care enough to go through the hassle of getting it in the mail.

[TheMadgician]

My family had the one dvd + streaming plan. But over the past 6 months or so, we've essentially neglected the dvd part. So chances are we'll just cancel that and stick to streaming.

[yorost]

this may cause me to cancel my dvd plan. I just wish they would get on the ball with the streaming service. It's not that great at the moment and with the stock price going up and up the company is doing well!

On the ball?  They have to negotiate when they can release things to streaming.  The studios haven't embraced streaming so want limits on how much is available at any time and how quickly things can go that route.

[tjanuranus]

what i mean is if they want their service to survive they have to pay up. Right now the streaming is pretty pathetic. I use it for Tv shows more than movies because the movie selection is very poor. Now there is a lot more competition and there is more coming. Pay the big bucks and make the best service out there. I would happily pay 20 bucks a month for streaming if they have something close to there dvd catalog available for streaming. And everyone i've talked to personally feels the same way. I would imagine a lot of people would pay a lot more if the service was better.

[Tick]

I find that the selection of streaming stuff is mostly crap in my opinion. Having both for 9.99 made it worthwhile. I will not pay for both at 15.98. That's ridiculous. I also don't want to pay 7.99 for one at a time by mail but I'll consider it cause its convenient.
I may just ditch Netflix at this point. This is happening at a time when Blockbuster just made all there movies .99 a night.
I may use Blockbuster or Redbox if I really want a movie. I can certainly learn to live without Netflix if need be.

[El Barto]

Yeah, they're trying to work through a pretty complex business model.  Aside from Hollywood dictating what can/can't be streamed, I imagine people are also running into Comcast related problems as well.  The physical disk model was fairly straight forward since movie rental is old hat.  My guess is that they're prefer to unload that aspect of it (postage was really hurting them in many cases).  

[wkiml]

my kids stream movies all day long as well as I partaking in the 3 movies at a time option (Blu-ray) it currently costs me approx $35 a month which I feel is still a good bargin. Concidering when I take my kids to the movies between tickets and concession I drop $75 easily

[Adami]

Sucks I'll have to pay a whole 6 bucks or whatever more a month, but such is life. It's better than cable or blockbuster or redbox where I have to have one near me in order to return it the very next day.

[lordxizor]

Given that when Netflix current streaming contracts are up they can expect huge increases in the costs of their next contracts, it was inevitable that they need to start passing on that cost sooner rather than later.

[sonatafanica]

This doesn't look like it affects me at all. I only use Netflix for its instant streaming. If a movie I want to watch isn't available to stream, well, tough shit for me. I don't care enough to go through the hassle of getting it in the mail.

that's asinine

[ReaperKK]

I just got the notification in my email about the increase in cost. Even though it is $6, I don't think the streaming is to a level where I will justify the cost for it. I'll probably just keep the DVD one at a time feature and drop streaming.

[zerogravityfat]

My family had the one dvd + streaming plan. But over the past 6 months or so, we've essentially neglected the dvd part. So chances are we'll just cancel that and stick to streaming.

this

[skydivingninja]

I only paid for the streaming stuff (where they have a lot of classic movies I haven't seen before as well as a selection of great TV shows) so this doesn't affect me at all.  If I did choose to get DVDs as well, a total of $15 doesn't seem all that bad.  They're still the best option for streaming and video rental, IMO. 

[YtseBitsySpider]

bandwidth, bandwidth, bandwidth.

The end is near people.

[LeeHarveyKennedy]

This doesn't look like it affects me at all. I only use Netflix for its instant streaming. If a movie I want to watch isn't available to stream, well, tough shit for me. I don't care enough to go through the hassle of getting it in the mail.

Yep, my sentiments exactly.

[Elsydeon]

I tried out netflix with their free one month trial, I cancelled my subscription a week before that ended. I wasn't too impressed with the quality and the selection of their streaming movies and tv shows.
I don't think I watch enough movies and shows a month to justify paying 9 or 15 bucks

[Gadough]

This doesn't look like it affects me at all. I only use Netflix for its instant streaming. If a movie I want to watch isn't available to stream, well, tough shit for me. I don't care enough to go through the hassle of getting it in the mail.

that's asinine

how so?

[sonatafanica]

This doesn't look like it affects me at all. I only use Netflix for its instant streaming. If a movie I want to watch isn't available to stream, well, tough shit for me. I don't care enough to go through the hassle of getting it in the mail.

that's asinine

how so?

uhh, shackleford

the names russssty shackleford

[Zook]

I just have the streaming, so I'm not too worried, although they need to upload some more shit.

[Tick]

Sucks I'll have to pay a whole 6 bucks or whatever more a month, but such is life. It's better than cable or blockbuster or redbox where I have to have one near me in order to return it the very next day.

Nearly doubling the price of something is weak. I can use Redbox from the Stop and Shop down the street and pay a 1.50 for a movie. I pay enough for cable. Maybe its time to take advantage of Starz and HBO channels a little more then I have been.
In the end people will ultimately choose if they want to go forward. The more I ponder it the more I think Netflix is done for me come September. Half the time I wait literally months for the new releases at the top of my queue. Its actually quite ridiculous how long I have waited for some movies.
 Perhaps I should be happy Netflix is making a decision I have pondered for awhile now considerably easier.

[Jamesman42]

Netflix is better on its TV selection than movie selection from my experience.

New DVD's cost what, $15 or $20 these days to buy? Paying $15/mo. is still a great deal in the long run. I am staying.

[Tick]

Netflix is better on its TV selection than movie selection from my experience.

New DVD's cost what, $15 or $20 these days to buy? Paying $15/mo. is still a great deal in the long run. I am staying.

Renting a DVD at Blockbuster is a dollar. Redbox is a dollar fifty.
Why would you have to buy the movies if you didn't use Netflix? That makes little sense to me?

[Jamesman42]

That's how I compare it, I don't care for BB or RB.

[Tick]

That's how I compare it, I don't care for BB or RB.

Then rent the movies on demand for 5 bucks and its still cheaper then buying your movies. That's all I'm saying. Your comparing owning the movies outright, to Netflix where your renting them and giving them back. Its not a good comparison when discussing prices?

[Jamesman42]

Thing is, I love Netflix. And I don't want more than one service to use to freaking watch movies. I'm not that picky.

[Adami]

Sucks I'll have to pay a whole 6 bucks or whatever more a month, but such is life. It's better than cable or blockbuster or redbox where I have to have one near me in order to return it the very next day.

Nearly doubling the price of something is weak. I can use Redbox from the Stop and Shop down the street and pay a 1.50 for a movie. I pay enough for cable. Maybe its time to take advantage of Starz and HBO channels a little more then I have been.
In the end people will ultimately choose if they want to go forward. The more I ponder it the more I think Netflix is done for me come September. Half the time I wait literally months for the new releases at the top of my queue. Its actually quite ridiculous how long I have waited for some movies.
 Perhaps I should be happy Netflix is making a decision I have pondered for awhile now considerably easier.

Ah see that's the difference. I don't have cable, so as of now I'm paying 7.99 or whatever for the 1 dvd and streaming as that is my only source of watching things I don't own. There isn't a blockbuster anywhere near me, nor is there a redbox anywhere near me. It would be a major hassle to travel all the way down to one the day after I rent something. So 16 bucks or whatever a month for endless streaming as many DVDs per month as I want (provided it's one at a time) is fine to me.

[ReaPsTA]

So basically, for the same price I'm paying now to get two DVD's at a time per month, I can get only one?

Idiots.

EDIT:  Or not, since there's no other real option I guess Netflix can give me less for the same price.  Oh joy.

Seriously, why are companies like Zappos that go out of their way to do the right thing for their customers so rare?  Now that Netflix is swimming in money, they're doing everything they can to treat their customers worse because, even though they won't admit it, their actions clearly indicate that they want to get out of mailing DVD's.

Oh, because someone will be curious about it, Zappos made a billion dollars in revenue in 2009.

[tjanuranus]

Yeah but it's 16 for 1 movie at a time I'm on the three at a time plan. Going to be expensive. I wish the streaming service was up to par.

[ReaPsTA]

Yeah but it's 16 for 1 movie at a time I'm on the three at a time plan. Going to be expensive. I wish the streaming service was up to par.

See, that's the problem.  Netflix is too far ahead.  Streaming hasn't become "mainstream" yet, and the movie companies still don't seem to have much faith in it.  To some extent, I think Netflix is trying to push along the adoption of streaming by making DVD's less convenient, but consumers tend to not like that.  This attitude is also reflected in Netflix funding the Fincher produced show for way more money than is practical.  There's a reason being ahead of your time is called being ahead of your time.  People are ready for certain things when they are and not before.  The world isn't quite as ready for streaming as Netflix seems to think, and I'd hope they don't go overboard with it.

[7thHanyou]

Streaming has almost rendered DVDs obsolete for me.

I currently have DVDs delivered, but I'll just cancel that. I'll end up paying less per month as a result.

[Nigerius Rex]

Free Market Fail.

 

[Adami]

Free Market Fail.

 

I figured that would get yours or WW's attention.