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Yesterday, Netflix announced new pricing for its subscription DVD rental service, one that represents a substantial increase. Subscribers to its streaming service will still pay $7.99 a month for unlimited content, but DVD rentals will also cost $7.99 a month, up from the $2 surcharge streaming content subscribers had been paying. Customers are furious.
There's a lot of talk about the whys. Some surmise that negotiated contracts are expiring and studios and networks will soon be raising fees charged to Netflix, and Netflix is just passing along the costs. And there's some chatter about how Netflix is taking advantage of its position as the market leader to squeeze more money from loyal subscribers.
On both of these points I call bulls...t.
Follow Ups:
(see Stalker above as an example).
Netflix has saved me some dough.
the day of the increase. I may go back some day if the content on the streaming service increases substantially but the price does not.
Until then, I can get pretty much anything I want via BitTorrent.
Netflix is trying to deemphasize physical DVD delivery. Ultimately they know that the can not compete with $1 RedBox delivery. At the same time they will face significantly higher licensing costs for streaming titles. Seriously, when Netflix initially negotiated streaming rights, the cost was minimal, in some cases laughably so. Over the next 3 years, streaming rights will be renegotiated and you better believe that Hollywood will play hardball. Netflix is building cash in anticipation.
Best,
Ross
get some excercise in. Send a message in the process. Think if enough people start patronizing Red Boxes they'll keep raising prices?
I guess streaming is out of the question - as for me it's a non-issue because as my broadband connection is so shitty, I'd rather be watching DVD's, let alone Blu-Rays.
No foreign, no classic, little indie.
It's OK if you want current cinplex fodder.
Damn Comcast.
They need bigger machines! My prime location expanded to 2 machines with just a small variation of selection.
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and until someone comes up with a better system and plan price wise it sure beats a night at the multiplex or buying a new DVD/Blu Ray.
And just try finding a decent, well stocked and convenient rental store these daze!
" Once this was all Black Plasma and Imagination." -Michael McClure
it was a generous pricing model and the turnaround for the dvds is pretty quick.
Hopefully this markup will cover their projections on the cost of getting the rest of the catalogue to stream.
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or stayed the same...
I guess the bundled deal of 3 movies at a time with unlimited downloads has been separated, so we
removed the download option which we don't use and the monthly bill will remain the same for three shiny (usually...) discs at a time.
This according to my wife who handles the account...
" Once this was all Black Plasma and Imagination." -Michael McClure
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