Netflix hikes prices, adds DVD-only plan

[woolldog]

Source: CNet news

Netflix today started offering a bare-bones DVD plan as it increased the prices of its DVD-and-streaming plans.

The company's new $7.99-per-month plan, offered at a new page on the Netflix site, allows users to have one DVD out a time on an unlimited basis. According to a Netflix salesperson who spoke to CNET today, those who want to include Blu-ray discs in the new plan will need to pay $9.99 per month. Internet streaming of video content is not included. If customers want two DVDs out at a time, they will need to pay $11.99 per month.

NewTeeVee was the first to report Netflix's new plan.

Netflix also announced today that those who want both DVD rentals and unlimited streaming will need to start paying more. Instead of paying the current $9.99-per-month fee for unlimited streaming and unlimited DVD rentals, customers will need to pay $15.98 a month for a single DVD out a time, paying almost 60 percent more for the same service. The company said the fee includes $7.99 for unlimited streaming and $7.99 for its new bare-bones plan. Those who want two DVDs out a time will need to pay $19.98 per month.

Read more: http://news.cnet.com/8301-13506_3-20078765-17/netflix-hikes-prices-adds-dvd-only-plan/#ixzz1RutyBmo9


Read more: http://news.cnet.com/8301-13506_3-20078765-17/netflix-hikes-prices-adds-dvd-only-plan/

[RUMMYisFROSTED]

1. Key phrase: "...start paying more..."

k

[robinlynne]

67. No. We are now paying less. I jsut signed on to the new plan 15 minutes ago. The OP is wrong.

[kick-ass-bob]

95. what did you have and what do you have now?

Because I could not find a plan that goes from more expensive to cheaper.

[Born Free]

69. Others are cutting in...

I remember reading earlier this year that some major network providers like Comcast wanted Netflix to pay them more because Netflix users tend to use their networks more than others these days, my guess is the new prices reflect the new costs to those network providers. Yeah, I know some Netflix customers think they should not have to pay the extra fees because the individual users are already paying for their internet service. However, too many Netflix users stopped paying the higher prices for the movies and tv shows from their cable providers and use Netflix "instant" and this is where the problem developed, Comcast and others were not making as much money as they hoped to make so Netflix has to pay more to make up for the losses. It's kinda like a special hidden "network tax" so they can use their networks.

On edit: : My Netflix costs are going from about $10 a month to $16 but it is still better than a premium channel from Comcast

*****

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.


*******

[Kelvin Mace]

2. Having locked up the market

they now move to leverage the monopoly.

This is going to result in a howl of protest. The question is: "Will they back down".

[woolldog]

6. People will start canceling their accounts. nt

[DJ13]

8. With Red Box eveywhere this move is shortsighted

[RebelOne]

27. True. There is a Red Box just around the corner from me at my local Kroger.

Why would anyone want to pay the inflated prices at NetFlix?

[laconicsax]

34. Because Red Box has such an extensive catalogue?

:shrug:

[Dappleganger]

54. What Redbox is missing, quite often our local library has for free.

Especially if you prefer foreign films and classics, plus documentaries.

[laconicsax]

64. That really depends on where you are.

I consider myself lucky to live in an area with a fantastic public library system.

Having lived in a small town with a small, single-location library and another small town where the just adequate library system was closed because of funding, I can appreciate just how good I have it. I started my Netflix subscription before the latter happened in part because the county library system didn't have much of anything beyond children's shows and movies and the local Blockbuster only had new releases.

[Dappleganger]

77. Yes, you're right about that...

before we moved to FL a decade ago, the library we had in at our place in VA was about the size of a walk-in closet.

[trud]

79. inter library loan, folks. n/t

[SomeGuyInEagan]

100. Inter-library loan totally rocks!

At my library, I can get media from any other public library in the county (public libraries are county-based systems in Minnesota) as well as any public and higher education library in the state thru MNLink, delivered right to my local library. Fantastic!

[trud]

103. in RI interlibrary loan

gets you stuff free from any public library in the state.

[okieinpain]

92. well that library stuff is not going to last too much longer. lol. n/t.

[MaineDem]

82. Unfortunately, they aren't everywhere

The closest one to us is almost 30 miles away. I'm keeping Netflix.

[Codeine]

93. Redbox? That's absurd.

Netflix has over 100,000 titles on DVD. Art films, classics, and foreign films aren't going to be in a Redbox kiosk alongside the mouthbreather blockbusters any time soon. And I can't stream from a Redbox.

[Kelvin Mace]

15. Well, in my case, I will stream where I can get it

and get what I can from the library free, or wait to buy the DVD's used. In any case, they just kissed a river full of cash goodbye.

[Amerigo Vespucci]

20. Amazing what you can get from the library...

...Seinfeld, The Sopranos, The Shield, all kinds of killer TV. It's especially rewarding if you go to several different branches instead of just one.

[Roy Rolling]

17. Cancel

They call their DVD streaming "robust". Ironically, that is what the Republicans called the Ryan tax plan.

Robust to Netflix means they've added tons of shows nobody wants to distract from the fact they are so slow with new movies.

Netflix? Let me introduce you to your new neighbor: Colecovision . . .

[shanti]

57. don't think so....

lot of people don't get out that much, and having videos streamed or sent directly to their mailbox is perfect. with redbox, you have to get your ass up and take it back.

yes, it will cost more, but for me, netflix is still worth it.

[Javaman]

83. My GF and I talked about just that last night.

Seems like a good reason to support the local video store again.

[MessiahRp]

18. Actually they're not doing it for that reason...

Companies like HBO & Showtime as well as many major movie studios are trying to prevent Netflix from being able to stream much of their content without paying hefty premiums for them. Since they are charging that much more, Netflix is in a bind as far as keeping up with the content their subscribers expect or want. More and more of their business is shifting towards streaming but because streaming is a direct competition to the movie studios and their cable partners, they are choosing to either overcharge or fight back with sites of their own. That's why Hulu, which gouges viewers for content subscriptions already, is starting to get much of the better streaming content and why sites like Crackle.com are popping up.

Blame the movie/tv production studios for this one. They fear Netflix and want to break them so that they can continue to charge you at similar rates that they used to get when you were forced to buy DVDs. As the RIAA and MPAA groups always show, instead of being willing to be flexible on revenue to be with the times, they are stubborn and greedy and want to maintain the exact same revenue amounts even if it eventually kills them (not to mention encourages piracy/illegal downloading).

Rp

[cstanleytech]

37. Also if I recall correctly

the contract netflix has with some of the studios to stream their content for a really cheap price of 10 million or so is due to expire soon and the studios want more money like (assuming I recall correctly again) 1 billion and some change.

[marions ghost]

44. Hulu is 27% Murdoch

x(

[Kelvin Mace]

48. Netflix is in the same position iTunes was in

and Apple pretty much told the record labels, "Fine, you want more money, go find someone who will pay you more and give them our regards."

Faced with the immediate cessation of massive checks from Apple, the labels backed off.

Hollywood has a choice. A steady generous money stream from Netflix, or their own greed which will net them a fraction of that stream.

If it is Hollywood calling the shots, Netflix needs to grow a pair.

[Dappleganger]

55. Then you have AT&T and Comcast squeezing the customer for downloaded content

each month (we're with Comcast and it's 25 gigs a month, and yes we have gone over it, ugh). With more online content available, more online gaming available this really puts us in a pinch with the 6 of us in our home.

[Submariner]

36. How does Amazon streaming measure up?

I do not have Netflix, but Amazon seems to be keeping NF from becoming the monopoly.

http://www.amazon.com/Instant-Video/b?ie=UTF8&node=2858778011

[Born Free]

70. Amazon has some "free" instant streaming for Prime members

On the Roku, Amazon has 5.1 sound whereas Netflix does not. I do not think Amazon is better than Netflix but if you are already a "Prime" member at Amazon, the free movies and TV shows are OK. I think Hulu Plus is the poorest of them all, not only do you pay they nail you with commercials.

[Dappleganger]

72. They have about 75% less content...

and not much is free.

[CBHagman]

78. News reports suggest that is indeed happening.

I looked at my account page to see if there were any announcements but nothing came up. I expect that some of the members are overreacting to this, but that's the way of things. :shrug:

[WatsonT]

86. It may help blockbuster get back in the game

they may become the pepsi/coke of the online video world.

[sofa king]

106. Unfortunately, they're shackled to MS Silverlight

Silverlight is the stupidest streaming media player out there, its resolution rate being pinned to the download speed of the client, with no way for the user to adjust it.

That would be a great idea if most computers weren't wheezy pieces of shit capable of downloading much more streaming media than they can actually display. Any netbook with an ARM or Intel Atom CPU (which almost always means they rely on terrible integrated graphics) is too slow to display streaming media at anything at or above 480p.

But those millions and millions of terrible laptops often have awesome network interfaces and high-bandwidth connections that Silverlight interprets as "capable" of displaying a higher resolution. And, of course, offering a simple list of resolutions to choose from would be too difficult for either Microsoft or Netflix to implement, so the only feasible solution is to find a way to throttle your own Internet connection before firing up Silverlight. When you have to deceive the software in order to make it work, your software sucks, end of story.

Hence the slide-show movies so many of you are trying to watch through Netflix.

Worse, ARM is quickly becoming the new standard in mobile computing, not because it's any good, not because the best ARM chip of today can exceed the performance of the Celeron 300A I bought and overclocked in 1999, but because manufacturers can buy one for a fraction of the price of a modern, functional chip. Every day people are retiring laptops that actually run better than the small and affordable devices they are replacing them with. Which means that Netflix's user base is actually declining in capability, at the exact same time that they are trying to hike prices on their most popular feature.

So good luck with that. I'd be tossing their stock overboard if I had any, because unless they change something fast, they're going to fail.

[soleft]

3. My partner is hooked on unlimited streaming

Especially now that she can get it through her I phone.

[Ruby the Liberal]

4. 60% more?

And they just lost the ability to offer Starz productions because their membership size went beyond what the Sony/Starz contract allows?

Wow. What a bargain.

[Kelvin Mace]

5. I wouldn't complain about this change *IF*

I could stream all their titles and if the titles available for streaming didn't change almost daily. I was in the middle of watching "Pushing Daisies" via streaming, and when I went to watch the next episode, streaming had been discontinued and I would now have to order the DVD.

[Dappleganger]

56. Ouch, that would definitely piss me off.

That series was awesome, btw!

[Kelvin Mace]

87. By the same people who did "Dead Like Me"

which was also excellent, and canceled early.

I heard Jim Dale (the narrator of the US version of the Harry Potter books) was narrating the show, and checked in just for that.

[trud]

101. Dead Like Me

I loved that show.

[christx30]

74. I was making my way through

Eureka when I ran out of episodes. They only have up to the end of season 3. Now I'm having to go through... other sources to watch the rest of the series.
But I plan on keeping netflix. My 5 year old can find his shows any time he wants to.

[Kelvin Mace]

89. I'll go to the streaming only plan

And get current stuff from friends who still "tape" shows, to tape it for me. (Gee, DVR has certainly cut down on all that piracy stuff. Seems Hollywood is bound and determined to cling to the past no matter what it costs them in revenue).

Their days are numbered though. They are becoming as irrelevant as record labels. Oh, they still make up the majority of releases, but they are starting to be by-passed by artists who can go straight to the fans.

Felicia Day proved that a "studio-less", "networkless" distribution model can work with "The Guild", just as Joss Weadon proved it with "Dr. Horrible's Sing-a-long Blog"

[jannyk]

7. I thought they were going to nix DVD's.

That has been the talk all along - no DVD's are offered in Canada.

Strange.....

[Javaman]

84. I remember that too..

they were supposed to go all streaming by 2012.

[Demeter]

9. rethinking my membership

[Fla Dem]

10. Had to know this was coming...They underpriced Blockbuster to build a following.

It took a few years, but they built their customer base with incredibly low fees. Now that Blockbuster is all but non-existent, Net Flix ups their price.

[woolldog]

12. Except they've already raised their prices on me once.

There's not going to be a second time. I'm done with them.

[Luciferous]

11. I generally only use the streaming, but lately the new arrivals have been pretty crappy

so my kids are the only ones really using the service. I'll still probably bite the bullet and pay for it since we don't have cable.

[JAnthony]

13. Don't all jump on me at once, but the cheaper price was always

a means of getting customers addicted to Netflix.

Sure, they will lose a certain percentage of their customers, maybe 20% at most, but they will make more money even with such a loss.

My cable company charges $19.99 for the HBO suite of channels, and another $5. or o per ON DEMAND video from their library of choices, (a few thousand, but hardly any I would want to see).

Netflix is still a bargain at twice the old price.

[Amerigo Vespucci]

22. "Loss Leader"

That's the industry term for what you're suggesting. Start off with a price you're pretty sure people will pay, get them hooked, then jack the price.

It's a variant of pushers selling drugs to kids on playgrounds and telling them "the first one is free."

[JAnthony]

26. Well, loss leaders are usually one or a few items out of many to get

customers into the store. Netflix ALREADY made $ at $7.99 a month!

There was no "loss" to Netflix at the lower price,....they will just be making more $ now!

[NICO9000]

46. I was thinking bait-and-switch

We'll just pay $2.00 less for streaming only. If we want to watch a DVD, the Redbox kiosk is a mile away at the grocery store.

[ThomThom]

41. I agree

I don't have cable, can't get any TV off an antenna so I stream and get two at a time from Netflix. It is great, don't want to pay more but I will. They have not notified me of an increase. In fact they have sent me two extra DVDs recently for no reason.

[JAnthony]

104. Netflix is going to go head to head with cable TV within a couple years

who needs Fox News on cable if you can only watch two movies at once, two news shows a day and carry on a regular life?

Let's just be glad Netflix exists......they have, most likely, figured out that their audience is middle class, can pay $25 a month for what they want, and that will give Netflix 1.5 billions a year from 50 million homes at $300 a year each.

[Historic NY]

14. Might just as well kept cable preminum channels...they put the fish hooks out..

and people bought into them....:wtf:

[closeupready]

16. I only recently re-subscribed to Netflix. Going to let it go now.

Most of the best films aren't available on streaming anyway, so no big loss.

[neohippie]

19. goodbye

I haven't really been happy with the titles available for streaming anyway, and I almost never want to wait for a DVD when the mood strikes me to see a certian title.

Time to let my subscription go, let the marketplace speak for itself, maybe they will realize that they are going to loose some customers over this move, I hope so, if they offer a better service for a more reasonable price then I may return some day.

[closeupready]

30. Hear ya.

:hi:

[RebelOne]

28. I canceled my subscription to Netflix a couple of years ago.

There are so many Web sites now where you can watch free movies.

[closeupready]

29. Yes; in fact, I'll often watch 48 Hours or Survivor online.

By the time I'm done with one or two episodes, I have other things to do, and I got just as much entertainment from that as I would have from Netflix. I really have never liked their business model, starting with throttling DVD's. I presume the lack of streaming for the best films is another kind of scheme designed to make them money, somehow.

[shanti]

59. really?

i've seen tons of movies on netflix that i would never have had a chance to see, indies and foreign films, for example, and my favorites, documentaries.

[closeupready]

81. For some reason, I can only think of one film I searched for, and couldn't stream "Clash of the Tita

Titans" but there were a number of others. Oh, and as I type this, I recall also, "Inside Job" was not available. Those are just two recent examples.

OTOH, as you say, there are more obscure, quality films available, so it may work out perfectly for some. :)

[Purveyor]

21. In my case, I don't have broadband access for streaming so I'm saving $2 a month. eom

[totodeinhere]

23. I'm not sure whom to blame here, Netfiix or the movie studios who charge exorbitant

rates for their movies. Look for Red Box to raise prices soon as well. And meanwhile a pay per view movie on Directv costs $5.99 for just one movie.

And remember that cable and satellite rates keep going up every year at more than twice the rate of inflation. And have you tried to take your whole family to the movie theater lately. You can easily plunk down $100 for that if you buy popcorn and drinks.

[christx30]

76. There was a proposal

a few years ago that would have forced invidual family members to buy a license to watch a movie at home. It didn't go anywhere, and it was laughed out of everywhere it was brought up.
I'm still watching for it to come up again.

[AsahinaKimi]

24. I can watch free streaming movies

for under $4.00 on youtube now. Now, hopefully they will increase their selection!

[Doctor_J]

99. How can you watch free movies for under $4?

:shrug:

[Downwinder]

25. Repeat after me. There is NO inflation.

[bikebloke]

31. They just raised the price not long ago.

With the local Comcast monopoly, the streaming reliability matches dial-up. I'll stick with disques.

[deucemagnet]

32. There are alternatives.

For example, www.icefilms.info. Less reliable than Netflix, but 100% cheaper. I think I may be leaving Netflix when they hike the rates.

[MilesColtrane]

33. The time is ripe for Apple to offer a rental subscription plan.

Heck, even if they don't I think I'm going to drop Netflix' DVD plan and just rent through iTunes when I want to see a new movie.

[NJCher]

35. I have a solution

but I don't have time to type it now as I have to go to work, so if you've seen this message and you want to figure out how to beat the price increase, stop back after 10 tonight. I will post back after I'm out of class.


Cher

[shanti]

60. would like to hear about that!

:)

[valerief]

38. I have the 1 DVD and streaming plan. I think I'll change to just the streaming plan. nt

[CarrieLynne]

39. ouch...i watch netflix exclusively and this bums me out!

i'd go for a streaming only plan if they ever have one....I dont even bother with tv anymore lol

[Big Blue Marble]

51. They do now.

Reread the article. You can get just streaming for 7.99.

Oh, and welcome to DU, CarrieLynne. :hi:

[OhioChick]

40. They'll just lose a lot of customers n/t

[2Design]

42. honeymoon is over - just like walmart - run everyone else out of business then hike prices

[2Design]

43. at 7.99 would need to get at least eight in a month - go to the kiosk

for $1 each and you can get that many while it is very difficult to get eight in a month - I tried it and realized it was easier to just go to the kiosks because I was driving to mail them back on the same day I watched them to speed up the process by one day turn around - never have gone back to them

[marions ghost]

45. Netflix killed the local indy video store

I hate em. Don't really watch movies anymore because of Netflix. I preferred to just wander around the store at the last minute and select. I don't want to have to think ahead.

[Ter]

52. No, Blockbuster killed the indy store 15 years ago

Netfix killed Blockbuster, so good for them. Just like Best Buy killed the mom and pop store, and Amazon is killing them. What goes around, comes around!

[marions ghost]

97. Not where I am

they successfully competed with Blockbuster. They blame the recent closing on Netflix. :thumbsdown:

[some guy]

47. thanks.

I've been meaning to cancel my account anyway. So I used this as a reminder, and have now done so.

I tried streaming to my pc. it works fine, but about 95% of the movies I searched for to stream, were only available via DVD.

[Still Blue in PDX]

49. Not worth it for me since I only watch the DVDs while donating platelets.

Bummer. I canceled HBO and I'm surviving without True Blood this season; I can survive without seeing all the old Doctor Who episodes. I might not like it, but I can do it.

[woolldog]

50. you can find a lot of these episodes of shows online

to download free, if you're patient enough to sift through the results, avoid spam, and bad links. You don't even need to use torrents anymore. You can find most episodes shortly after they air.

for example:

http://www.google.com/#sclient=psy&hl=en&source=hp&q=trueblood+s4e01&aq=0b&aqi=g-b1&aql=&oq=&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=a6dd9527a3a501e9&biw=1024&bih=584

[Dappleganger]

53. We have just decided to go to streaming only...

a month ago we were getting 3 dvd's plus streaming (blu-ray), now we are cutting back.

It just isn't worth it to me, plus our local library has a ton of FREE dvd's that we actually like! Redbox is only $1.50 for BD and several times a month I can find free codes for movies.

[Serve The Servants]

58. I already pay $19.70 per month

for 2 Blu-ray disks and streaming. I've payed that monthly fee for quite some time. Is this rate going to go up even further? I'm confused.

[Serve The Servants]

62. Never mind

Coincidentally, I received this email as I was writing that post:

Dear Mr. Awesome,

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 $17.99 a month membership for unlimited streaming and unlimited DVDs (including Blu-ray access) will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs (including Blu-ray), 2 out at-a-time (no streaming)
for $14.99 a month

Your price for getting both of these plans will be $22.98 a month ($7.99 + $14.99). 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

[Dappleganger]

73. Yes.

That price will be $7.99 for streaming and $14.99 for 2 blu-ray dvd's plus tax.

Seriously stinks. :(

[Bella Boo]

61. I don't know if it's worth it

I was debating getting the DVD plan, but I'm not sure if it's worth it.

[robinlynne]

68. NOw it is. I get 4 a week. Was paying 30.00 month. The new plan is 21.00 month.

3 a week is 15.00 per month!

[kick-ass-bob]

96. what do you mean 4 a week and 3 a week?

They don't have weekly plans.

edit:
I see now what you do. Unless you watch 2 DVDs a day, you were already overpaying for your service by getting 4 at a time.
Send 1 back each day and by day 3 you have your 3rd DVD - when you can actually watch it if you watch 1 movie per day.

[Incitatus]

63. I hope they expand their selection of streaming content with that extra revenue. nt

[Serve The Servants]

65. Yes, that would be nice.

As well as adding a gaming library for Xbox, Playstation, Wii, etc.

[robinlynne]

66. No. You are mistaken.It just lowered mine by 10.00 a month for the same service I

had before! Separating DVDs and stremaing is great fo those of us on amac who can not stream, for exmaple. We no longer pay for a service we do not use. It is cheaper either way you look at it. Streaming only is now cheaper, DVDs only is now cheaper.

[cayanne]

71. I like it and think it is fair.

We only use DVDs so why should we pay for streaming that we can't use?

[NJCher]

75. A Solution

Here's my solution to the price increase.

Did you know that legally you can share your Netflix account with up to six other people? Yes, this is written in their agreement.

So I shared mine with my brother, a friend, and it is also used by my spouse when he travels.

All three offered to chip in for the service. I told them I didn't want their money, as I thought the service quite reasonable and not worth collecting any money from my family or friends.

However, now I might ask them to chip in to cover the increase. More likely, though, I will go to the streaming only service. I don't use the DVD service that much.



Cher

[Javaman]

85. How do you share and account?

I know, dumb question, but I'm intrigued.

[NJCher]

90. easy

Just give them the user name and password.

Then if they don't pay up, you just change the password!


Cher

[Javaman]

91. I like that. thanks! nt

[shanti]

94. right, but

the dvd limit would be shared among all of you, wouldn't it? when my son was on my plan, i had 3 at a time. so if he picked one, i would have two of my own choices. the streaming part seems like it would be ok to share though...

netflix will probably plug that hole though...:eyes:

[NJCher]

98. yeah

The DVD limit applies to all.


Cher

[Endangered Specie]

80. Hello old friend...

[WatsonT]

88. You can rent a book from the library for free

just a thought. . .

[trud]

102. trou ble with streaming

Does anyone else have trouble with Netflix's streaming? I can watch hulu just fine, but Netflix paused at random times, the audio and video got out of synch, etc. I canceled my membership a year or two because stuff was unwatchable.

[GreenStormCloud]

105. I have streaming plus 4 DVD. My price increase is only $1.99. N/T