OT: Netflix rate increase

Submitted by redwhiteandMGOBLUE on July 12th, 2011 at 8:26 PM

Today, I received this email from Netflix regarding a significant rate increase:

Dear ________,

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

   Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
   Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

You can easily change or cancel your unlimited streaming plan, unlimited DVD plan, or both, by going to the Plan Change page in Your Account.

We realize you have many choices for home entertainment, and we thank you for your business. As always, if you have questions, please feel free to call us at 1-888-357-1516.

–The Netflix Team

A nearly 60% increase, WTF?!

I'm sure most people stream instead of get dvd's but not all titles are available for streaming.

Are any of you guys going to switch to one of the new plans or pay the increase for both?

http://www.huffingtonpost.com/2011/07/12/netflix-price-subscription-pla…

Comments

soup-er-UM

July 12th, 2011 at 8:42 PM ^

I just cancelled my subscription.  Amazon prime is $40 (for students) and you get a bunch of videos from there plus 2 day shipping.  Good enough for me.

Haxel Rose

July 12th, 2011 at 8:38 PM ^

If anyone else pays attention to that sort of thing, it's time to dump Netflix stock. The company has had a ridiculous run the last year or so, increasing stock price about ten-fold (off the top of my head) and membership about 30%. But their problem is three-pronged:

1) People are starting to realize their streaming selection sucks and they're moving to other services (HBOGo, anyone?)

2) Amazon, Apple, et al are wanting to become major players in the marketplace and have the cash to drive up the price of contracts with movie studios

3) Netflix's contracts all need to be renegotiated in the next year or two. There's no way they'll be able to secure deals financially similar to the current ones, and to maintain even the disappointing selection of streaming content they'll have to pony up beaucoup bucks (see #2)

All of this leads to price increases and, I imagine, more price increases down the road. Short sale anyone?

skunk bear

July 12th, 2011 at 8:42 PM ^

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each

 

Edit: I'm sorry, I just can't get it in the box.

Champ Kind

July 12th, 2011 at 8:51 PM ^

I was annoyed when I got this earlier as well.  I plan on cancelling my subscription.  With all the competition, it seems like this won't work out too well for them. 

elaydin

July 12th, 2011 at 8:52 PM ^

Netflix is doing all that it can to keep you from getting DVDs.

I have the highest ranking Netflix Queue Manager in the app store (link icon by Monumental) and a month ago they told us that they would no longer give API access to people's DVD queues.

Basically, after October, the only way you can manage your DVD queue is through the website.  No Roku, no game consoles, no Android, no iPhone, no DVD players, etc.

You could see this coming when the Netflix App didn't have DVD queue access.  Then they removed DVD queue access from all sorts of other devices.  It was just a matter of time.  DVDs are a pain to Netflix.  You have to store them, you have to replace them, you have to ship them.

Unfortunately, they have no content of their own, and will have to pay higher and higher prices to the studios for access to their movies.

It'll be interesting to see how much less use the app will see.  It could be an early indication of the effect on the business.

death by wolverine

July 12th, 2011 at 8:52 PM ^

Just get HBO and be done with it. They have the best shows on tv and most of the best movies. I got a good deal from Time Warner.I have HBO, Showtime, and Starz, all for 15 bucks a month.

goblue20111

July 12th, 2011 at 9:27 PM ^

Speaking of HBO shows when does Boardwalk Empire start up again? I've been scouring the net looking for a date and haven't found anything.  Next to football and hockey seasons starting up, premium cable TV shows make my Fall.  Entourage about halfway through, Dexter, Boardwalk Empire, CYE (absolutely hilarious the other night if you missed S8 premiere btw). 

goblue20111

July 13th, 2011 at 9:53 AM ^

I've never seen it but I've heard good things.  It used to come on right after Dexter, right? Between 10 hours of RedZone, watching my fantasy teams, then BW, then Dexter, plus the end of the Sunday night game, I was always too burnt out to check it out but I might have to give it a shot now.  I'm in love with Emmy Rossum so it might be worth it just for that. 

HailToA2

July 12th, 2011 at 9:12 PM ^

They're just totally raping anybody that uses the streaming portion. They know that we won't just get the streaming only package. I use streaming on my xbox360 ALL THE TIME, but use the dvd delivery for newer movies. It's ****ing infuriating that they raise the price SO MUCH and you still won't be able to get all the movies on streaming. I hate **** like this... everything I enjoy gets raised and raised and raised and the only alternative is.. basically nothing.

TheRivalry

July 12th, 2011 at 9:08 PM ^

Netflix was one of the very few companies doing right by its customers. I knew this day would come where they would seperate the original $8 plan and charge for both at double the rate. They're pretty slick in how they did it. Bump up once for a few bucks (6-8 months ago), and then a year later bump it up again by another $8. We're still having economic problems in the US and around the world in general and they decide to raise rates. Seriously, do these companies think before they do this? I had to dump my Directv because they raised my rates 3 times in 2 years. I will be dumping my DVD plan and begin using Redbox. Netflix is pretty much killing their Golden Goose.

goblue20111

July 12th, 2011 at 9:25 PM ^

I'd pay $20/month if they'd just put everything on streaming.  I use it so much off my PS3.  I used the DVD feature a bit in the beginning but I got sick of one DVD at a time.  I already have HBO and Showtime at home (thanks Comcast, you're not as shitty as I thought) so I may just do away with this all together.  I do enjoy some of the older movies they have (about to settle in for some Dumb and Dumber), the docs are pretty good, and they have all (or most) the seasons of some good shows (the Office, 30 Rock, TBB, etc.)  It might be worth keeping around for $10/month. 

Farnn

July 12th, 2011 at 9:31 PM ^

I would guess that this huge jump is because the current model was unstustainable.  I know the economy is bad and such, but a lot of the Netflix deals with content producers are set to expire in the coming few years, and Netflix had amazing deals that they won't be able to get again.  Their costs are about to go up, probably even more than the 50% they are raising rates.  And even so, $15 a month for streaming plus a dvd is a pretty good deal.

Maximinus Thrax

July 12th, 2011 at 10:52 PM ^

Not really unsustainable....the mailing of DVDs is just not as profitable.  Their strategy for a while now has been to push the streaming service and to de-emphasize the mail service.  Much higher margins.  They were making plenty of money with the current model, but they want more.  Good for shareholders, bad for us.  Good for places like Family Video I guess though.    I'll probably go exclusively streaming on Sept. 1st.  Fuck them....they can have less of my money.