1. d0ster's Avatar
    I'd have to say I saw this coming. I remember reading a whole ago how Netflix wanted to shift away from mailing DVD's and go streaming only. I suppose this is how they plan to accomplish that, by still having the option of DVD, but at a price point that has little value for the customer. It's as if they are pricing their DVD option out of market on purpose so as to have fewer customers choose the option, and at some point in time in the future, cancel it all together, affecting a much smaller user base.
    07-14-2011 08:37 PM
  2. phreddyl's Avatar
    I'd have to say I saw this coming. I remember reading a whole ago how Netflix wanted to shift away from mailing DVD's and go streaming only. I suppose this is how they plan to accomplish that, by still having the option of DVD, but at a price point that has little value for the customer. It's as if they are pricing their DVD option out of market on purpose so as to have fewer customers choose the option, and at some point in time in the future, cancel it all together, affecting a much smaller user base.
    This would be fine if all or most DVDs were available to stream. I would in fact prefer this. I always found that movies need to be out for months before they are in the streaming part. I switched to just the streaming figuring if a new movie came out I wanted to see I would go to redbox for a buck. I'll prob drop streaming too if it doesn't get better. If I want old played out movies I'll stick to cable.
    07-14-2011 09:19 PM
  3. phreddyl's Avatar
    I never fully understood how they dealt with the movie studios. In order to get the meager online streaming catalog, Netflix agreed to wait on new release DVDs for 30 days...

    You may be right, maybe a lot of their "success" was merely smoke and mirrors... We typically turned a DVD around in one day - meaning that when you allow for 1 day mailing time each way, I was getting a new DVD every 3 days or so... allowing for no mail on Sunday, we were easily getting 7 or 8 DVDs each month... so for the $9.99 Netflix was shipping 8 movies two ways - postage has to be at least $0.40 each, so that's about $6.40 in postage each month... leaving $3.60/month for licensing, overhead and profit... plus we watched some streaming content...

    I guess they make it up in volume... but regardless, it does not justify a 60% increase in fees.
    For us we maybe get around to getting a DVD a week. Sometimes even less but figured for $10 no biggie if I don't get that many. At $16 its a deal breaker.
    07-14-2011 09:22 PM
  4. SeanHRCC's Avatar
    Have to agree. I'll still be finding legal methods to obtain my movies, the industry will die if we don't support, same as any other.
    The usage of those outlets doesn't have the impact you might think (i recently did a pretty lengthy paper on it in school and even i was surprised at the facts i was finding about how many people actually use those things). Torrents and online streaming of movies illegally make up less than 10% of the viewership of films, so at this time, it's like throwing a tiny pebble into the ocean. Even if you increased that volume by double, you're still talking a very small hit to a very big entity...look at hollywood films, they still find that movie theater revenue increases and decreases in cyclical fashion in an almost MIRRORED way to historic cycles...you're essentially shooting a BB at a freight train.

    Personally, i enjoy the theater experience over convenience...combine that with the fact that my wife is heavily in the industry and torrents/streaming are unattractive to me, but i can see why people use them, especially with the outlets for getting this stuff at home is becoming non-existant (IE: Blockbusters shutting down), or unjustifiably more expensive (IE: Netflix).
    Last edited by SeanHRCC; 07-15-2011 at 07:36 AM.
    07-15-2011 07:31 AM
  5. Nanci's Avatar
    I'm surprised so many people are dropping Netflix. I never got the DVDs, so the change doesn't affect me, unless they are pressured to make the streaming selection better.
    07-15-2011 10:37 AM
  6. phreddyl's Avatar
    I'm surprised so many people are dropping Netflix. I never got the DVDs, so the change doesn't affect me, unless they are pressured to make the streaming selection better.
    Your surprised that consumers are upset when a product price is raised 60% without adding anything to the product?
    07-15-2011 01:26 PM
  7. Nanci's Avatar
    I guess I felt like only charging $1 more for unlimited streaming was, I don't know, too cheap to begin with. I was surprised at the pricing structure when I signed up for streaming.

    I would have thought that people would just choose whichever service they preferred most and switch to just that, not drop Netflix entirely.
    07-15-2011 01:30 PM
  8. Fausty82's Avatar
    I guess I felt like only charging $1 more for unlimited streaming was, I don't know, too cheap to begin with. I was surprised at the pricing structure when I signed up for streaming.

    I would have thought that people would just choose whichever service they preferred most and switch to just that, not drop Netflix entirely.
    Obviously, you'd be wrong. My take is that they offered both services for a fixed price. If it was "too cheap to begin with", that's not my fault, and it's the deal that we both (me and Netflix) agreed to. Now they want to change the price without adding any benefit to me. For some things, I want a DVD - some movies really are better in Blu-Ray high def quality... and for some, it's no big deal. No, Netflix doesn't offer Blu-Ray quality streaming... and even if it did, more than likely, it would be impacted by my cable company's bandwidth/speed limitations.

    Now they want to gouge me for what they agreed to give me for an agreed-upon price... so I am voting with my wallet and walking away from the deal. Their loss. I'll find another provider and move on in a Netflix-free world at my house
    07-15-2011 01:52 PM
  9. Nanci's Avatar
    Hey, I just said I was surprised; I didn't say I supported the price increase.
    07-15-2011 02:26 PM
  10. SeanHRCC's Avatar
    It's an ugly business practice to draw people in with a fairly low price for a product or service and then when they realize the marketing worked and they have a ton of people loyal to them, stick them with higher rates...it's what cable and satellite companies have been doing forever, and it's exactly why those same companies (Comcast, Direct TV, Dish Network, etc) have some of the lowest customer satisfaction ratings on the planet...make people happy with your service, then completely screw them when they almost "rely" on it for entertainment (or whatever the product is intended for).

    It's one reason why i love Apple, they had a cell phone that was instantly a legendary piece of technology, and when they had a new version, do they raise the price? Nope...they drop it, A LOT...and people are happy.
    07-15-2011 02:57 PM
  11. Purple4's Avatar
    What about HBO To Go?
    07-15-2011 05:57 PM
  12. applelove32's Avatar
    I agree with above. I've never been a Netfilx fan!
    07-15-2011 07:28 PM
  13. irawkmac's Avatar
    Ya know.. I've had Netflix for a while now. I've always been a fan of it actually. Endless t.v. shows and movies at my fingertips straight to my AppleTV in HD. Well.. then I stopped watching t.v. altogether. Now I rip DVD's and add them to my media collection on my home server and stream those throughout the house at my leisure.. soo.. I don't even know why I have Netflix to be honest with you. I guess I should cancel that crap.

    In relation to the price hike: I do think it's bogus that they aren't offering at least a small discount for customers that have both instead of charging full price for both. What kind of business model is that? 2 dollars off would have even be better than nothing.
    07-16-2011 09:47 PM
  14. anon4705295's Avatar
    Yah this sucks. The streaming is absolutely pathetic -- I don't understand how Netflix thinks it's okay to charge the same as the DVD plan when there are WAY more DVDs to watch. I go through ~20 dvds a month, so the DVD plan is what I'm sticking with.

    I would totally pay a 60% price hike... if it was because of a 60% product quality increase. Netflix cannot possibly think it's smart to make people pay so much more for the same, mediocre product. It was okay before cause it was kind of like getting streaming for free, as for me, 10 bucks seemed like a decent price for the DVD plan itself. Streaming sucks horribly, so this made sense. The new price hike? No sense. It's like Netflix forgot that the tried and true bundling business plan works wonderfully.

    I feel like Netflix is confused, too. It's like they thought people wanted streaming only, so they made a streaming only plan. This wasn't as popular as they expected, so they decided that people must want either the DVDs or streaming, and not just streaming, so they split the plan up to save people money. What they didn't realize was that streaming only didn't take off as well as they planned not because people just weren't in to streaming, but because their streaming options SUCK! It's not worth the money for most people. If their entire DVD catalog was available to stream, I bet a good 75% or more of customers would stream only, myself included.

    Right now all I have to watch is 3 TV series I'm interested in, and semi-blockbuster movies that are either old or didn't do as well as planned in theaters. For example, Iron Man is not streaming. It was from 2008 but was ridiculously popular. No stream. Iron Man 2, on the other hand, wasn't as popular, yet is more recent. But, it's streaming. 8 out of the Top 100 on Netflix are streaming. That's just sad. Netflix, this business plan WILL NOT WORK.
    07-16-2011 10:48 PM
  15. SeanHRCC's Avatar
    When the options to the consumer die, the ones that are left can go in for the kill...

    Kind of an indirect shot at Droid phones, but Google does own a large majority of Netflix, so those on the fence between iPhones and a droid based phone should consider they are supporting this kind of business practice by purchasing things featuring that little robot...

    Guess there's a reason he's so green.
    07-16-2011 11:55 PM
  16. Phil DeLong's Avatar
    When the options to the consumer die, the ones that are left can go in for the kill...

    Kind of an indirect shot at Droid phones, but Google does own a large majority of Netflix, so those on the fence between iPhones and a droid based phone should consider they are supporting this kind of business practice by purchasing things featuring that little robot...

    Guess there's a reason he's so green.
    More reason for them to all come over to the iPhone side, it's much better over here.
    07-18-2011 07:24 PM
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