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Original Message

RE: No comments on the Netflix price increase? nt

Posted by Ross on July 17, 2011 at 18:17:06:

Right now their cost to stream is minimal. Their cost is about to go up substantially when current streaming contracts expire. Initial contracts for streaming rights were laughably cheap. That will change over the next 3 years. Hollywood will play hardball and there is more competition. By making pricing changes now, Netflix will build cash in anticipation of higher costs to stream in the future.

Personally, we downgraded to a streaming only plan. My wife and I have been able to find plenty to watch (foreign, obscure, old etc). We enjoyed the Stig Larson trilogy in original Swedish for example.

I dig the on demand ability of streaming.

Best,

Ross