Netflix pricing going up

#1
TrueOrange

TrueOrange

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#1
According to a report from Engadget today, Netflix could soon be revising the pricing structure for its DVD, Blu-ray, and Instant Streaming movies services.

This morning, Netflix's official website was updated to reflect a change to its DVD rental service, which now includes a one DVD rental plan for $7.99, not including streaming functionality. This is a sharp increase from Netflix's current single disc plan, which is priced at $4.99.


The shift, Engadget says, is just the beginning of more pricing changes to come. Citing an unnamed tipster, Engadget says that the company plans to increase the price of its one disc rental plus streaming plan from $9.99 to $15.98. The source also said that the new pricing structure would take place tomorrow night, Wednesday July 13, around 9 p.m.

Update: Netflix has now confirmed the changes via the official Netflix blog. Netflix pricing will be as follows:
$7.99 for 1 DVD out at a time
$11.99 for 2 DVDs out at a time
$7.99 for unlimited streaming (no DVDs or Blu-rays)
$15.98 for 1 DVD and unlimited streaming
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Netflix Pricing Increases - Gear News at IGN
 
#3
#3
My system of strictly streaming on Netflix and Redbox for random movie wants serves me well.
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#7
#7
Think I will drop the dvd service. I rent all my new releases from Amazon
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#8
#8
So I could go 7.99 for the Stream and get a disc when I feel like it? Hmmmm....I am on the one disc plan for Bluray now if it is going up it would be like 20 dollars...
 
#12
#12
here's from their blog:

Jessie Becker, here to share two significant changes at Netflix with you.

First, we are launching new DVD only plans. These plans offer our lowest prices ever for unlimited DVDs – only $7.99 a month for our 1 DVD out at-a-time plan and $11.99 a month for our 2 DVDs out at-a-time plan. By offering our lowest prices ever, we hope to provide great value to our current and future DVDs by mail members. New members can sign up for these plans by going to DVD.netflix.com.

Second, we are separating unlimited DVDs by mail and unlimited streaming into separate plans to better reflect the costs of each and to give our members a choice: a streaming only plan, a DVD only plan or the option to subscribe to both. With this change, we will no longer offer a plan that includes both unlimited streaming and DVDs by mail.

So for instance, our 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.

The price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). For new members, these changes are effective immediately; for existing members, the new pricing will start for charges on or after September 1, 2011.

Why the changes?

Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didn’t anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering. 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.

Now we offer a choice: Unlimited Streaming for $7.99 a month, Unlimited DVDs for $7.99 a month, or both for $15.98 a month ($7.99 + $7.99). We think $7.99 is a terrific value for our unlimited streaming plan and $7.99 a terrific value for our unlimited DVD plan. We hope one, or both, of these plans makes sense for our members and their entertainment needs.

As always, our members can easily choose to change or cancel their unlimited streaming plan, unlimited DVD plan, or both by visiting Your Account.
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http://blog.netflix.com/2011/07/netflix-introduces-new-plans-and.html
 
#14
#14
In the not so distant past, Netflix was known mainly for its red envelopes. The DVD-rental-by-mail service was the company's core, and streaming video was a side perk for subscribers.

Fast forward to 2011, and online movies and TV couldn't be hotter. Google, Amazon, Hulu and others have jumped into the fray -- putting studios in the power position. They want to be paid more for the content they're providing.

That spells trouble for Netflix's streaming content costs.

"Netflix has another year or two on most of these contracts, and then the game completely changes," says Michael Pachter, analyst at Wedbush Securities.

Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.

When streaming video was new, Netflix was able to secure contracts with the likes of Warner Bros. Studios and MTV to license big TV and film catalogues for about $5 million to $10 million per year. This time around, Pachter says, those costs could increase more than tenfold.

"The content owners realize they can't give Netflix all the leverage," he says. "Netflix had the power when they were the only bidder. But you don't have as much leverage when you suddenly have competition."
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Studios are starting to play hardball with Netflix - Jul. 11, 2011

Looks like the golden era of Netflix is about to come to an end. I'm sure you'll have content providers try to come out with their own streaming services and/or some kind of umbrella service. These movie studios just refuse to grasp that they're in the 21st centuries. Take your slice of pie and be happy. Instead they screw over those that actually pay for their content and continue to push more and more to piracy.
 
#15
#15
$16 still isn't that bad. When it starts getting over $20 it might be time to reconsider.
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#17
#17
Technolog from msnbc.com - Thousands threaten to quit Netflix

These changes raised the ire of Netflix's fans on Facebook, almost 9,000 of whom stormed onto its page to voice their vehement disapproval. Many of them complained about Netflix's "greed" and said they were going to leave Netflix for Redbox. Other users suggested services like Crackle, Hulu Plus and even Blockbuster.
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Here are some excerpts from the Facebook page:

It takes a real genius to destroy a thriving company in a single day.....Congrats Netflix!!!!!
Greedy CEO + a mediocre, slow, limited streaming service + waiting for DVDs in the mail = Many canceled Netflix users and Redbox's Best Day EVER!
This is weeeeaaaaakkkkk!!!! I can't count on one hand how many people I've gotten to join Netflix. This isn't the time to go UP on prices! Let's see what Blockbuster has in stored!
HORRIBLE IDEA. Let's all cancel our plans until they CHANGE IT BACK
Well, I won't be recommending Netflix anymore. If all movies and shows were available no matter which option you chose, then we could choose one or the other. As it is, the customer is in a no-win situation, you have to choose "both" options in order to ensure that you will be able to watch ALL of the movies and series you want. We will be cancelling. Time to go check Hulu.
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#18
#18
UPDATE: Redbox, which offers movies at $1 apiece for each night checked out, "now has more than 27,000 locations that are within a five minute drive of 60 percent of the U.S. population," shared with us comments from its public Facebook wall that seemed to confirm at least some possible migration from Facebook to Redbox. Here are some:

I am renting 5 tonight just to show you my support and to rebel against Netflix!
wowsah. i bet redbox gets a lot of new customers today.
C'mon Redbox — you need to create a streaming option to supplement your DVD rental business — Netflix's decision today definitely leaves a gaping hole in the market now. Boo Netflix!
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#24
#24
I've been with Netflix for close to 8 years, have gotten several people to sign up, stuck with them through a couple price increases but now I'll be going from $23.99 to $27.98...........goodbye Netflix hello ???????
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#25
#25
just got my email today. mine (Unlimited DVDs, 3 out at-a-time and Unlimited Streaming) will only be going up $4 to $23.98. I can live with it.
 
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