Netflix's new ludicrous pricing plan

[Pepe Silvia]

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

That's fucking bullshit, I rarely get DVDs but I don't want to have no option of grabbing something tha tcatches my eye. $16? Fuck you

 

[JGlass]

Got the email today. I'm going to stay onboard for the instant streaming stuff, but not the delivery service.

 

[justinsayne]

WTF, I usually only get about one DVD a month, so if I have to choose I'm taking the streaming plan, but that's absolute bullshit, they better start adding more new fucking movies to streaming if they do shit this way

 

[Pepe Silvia]

If you change it before September you're pretty derp, keep it for now

I might do the unlimited streaming + 2 DVD's a month if possible ($7.99 + $4.99) or I might just keep both, haven't decided yet

 

[JGlass]

WTF, I usually only get about one DVD a month, so if I have to choose I'm taking the streaming plan, but that's absolute bullshit, they better start adding more new fucking movies to streaming if they do shit this way

I think that's the long term plan for Netflix. It's cheaper to just have the whole catalog online, so they'll slowly shrink their mail order business until everyone has the proper accommodations for a streaming only system.

 

[justinsayne]

Got the email today. I'm going to stay onboard for the instant streaming stuff, but not the delivery service.

I think that's what a lot of people will do, I imagine if people want a DVD they'll just go to a Redbox or Blockbuster machine instead, wihc basically means Netflix is more or less supporting there competition... dumbasses

 

[justinsayne]

I think that's the long term plan for Netflix. It's cheaper to just have the whole catalog online, so they'll slowly shrink their mail order business until everyone has the proper accommodations for a streaming only system.

It's really the only thing I use my Wii for anymore ever since all my games went "missing", & I plan on getting a PS3 eventually, though every time I think I'm finally getting close to having enough money to buy shit happens

EDIT: hey cool look a double post

 

[JGlass]

It's really the only thing I use my Wii for anymore ever since all my games went "missing", & I plan on getting a PS3 eventually, though every time I think I'm finally getting close to having enough money to buy shit happens

EDIT: hey cool look a double post

That's what the hold up is. There's still a lot of people that don't have devices that enable them to use Netflix on their televisions. My guess is that they'll either try to get most new televisions to have the ability to access Netflix or they'll introduce a fairly inexpensive (maybe a one time fee of 20-40 dollars) device that allows you to stream Netflix. That said, once you get the device, you have basically every mainstream movie ever made available for just 7.99 a month. That would MURDER DVD sales, but it would be a dream come true for film fans everywhere.

 

[Uncle Phatso]

I use redbox a hell of a lot more now anyways. I had netflix for about a year up untill this past febuary. Now I just go to the town over and use the redbox. 1 dollar for a movie, plus like 50 cents gas. I only use it like 2 or 3 times a month. But it works for me.

 

[Harthan]

Much like Verizon changing their data plans, this is a reaction to how people are utilizing technology in 2011. The current Netflix plan is founded upon the idea of DVDs being central, streaming only being a diversionary add on. What Netflix has no doubt noticed is that there are instead two camps of users - those who stream a lot, and those who get DVDs a lot. Streaming is now an important enough feature to become its own service, hence the separation.

Honestly, this is good for me. I stream whatever is available for the easy access and good quality. Yes, I get DVDs of what isn't in there, but really? I can just torrent that stuff. In the long run this saves me a buck a month, so I'm good with this.

 

[justinsayne]

I use redbox a hell of a lot more now anyways. I had netflix for about a year up untill this past febuary. Now I just go to the town over and use the redbox. 1 dollar for a movie, plus like 50 cents gas. I only use it like 2 or 3 times a month. But it works for me.

I tend to watch more tv shows via the streaming than anything else, however I find a shit load of movies on there that I either A.) haven't seen yet but have been meaning to, or B.) haven't seen in ages

 

[Moon Knight]

Makes sense to me, I downgraded to a streaming only plan because thats all I used. Why should I pay an extra $2 bucks a month for something I never use? This doesn't affect me at all.

 

[justinsayne]

I use both, so the extra $2 a month was fine by me

 

[Pepe Silvia]

What people don't realize is the Streaming Only plan for $7.99 has been available for a good while, maybe 6 months or so. No one's saving any money, they're just jacking up the price for those of us who want to grab a DVD every now and then. Redbox doesn't have the best selection (at least out here)

I wouldn't mind if it was something like $11.98 for a bundle (Half off the Unlim DVDs) but for a fucking $5.99 increase? At least put some different plans for the DVDs, like 4 a month or ETC

 

[Slyfox696]

That's fucking bullshit, I rarely get DVDs but I don't want to have no option of grabbing something tha tcatches my eye. $16? Fuck you

You're looking at it wrong. First of all, mailing DVDs, at this point, is probably much more expensive than streaming (envelopes, postage rates, people to handle product, etc.), now that they have their streaming service setup. Cable content providers are pulling their content from Netflix because they see the threat Netflix represents, or like in the case of HBO, requiring astronomical fees for the content. I'm guessing the MPAA is requiring greater license fees now they see Netflix is popular, and people would rather use Netflix than buy a DVD.

You can get upset with Netflix all you want, but you're likely getting upset with the wrong people. Netflix is still a business, not a charity. And when their fees go up, they don't want to lose money, so they have to pass the costs on to the users.

Like I said, getting mad at Netflix is probably being shortsighted in this instance. Most likely, it's due to factors beyond their control.


No matter how you look at it, this is not "ludicrous". It's quite reasonable, just more than before. Don't believe me? Try to find something better, that doesn't have advertisements assaulting you at every turn.

 

[Moon Knight]

What people don't realize is the Streaming Only plan for $7.99 has been available for a good while, maybe 6 months or so. No one's saving any money, they're just jacking up the price for those of us who want to grab a DVD every now and then. Redbox doesn't have the best selection (at least out here)

I wouldn't mind if it was something like $11.98 for a bundle (Half off the Unlim DVDs) but for a fucking $5.99 increase? At least put some different plans for the DVDs, like 4 a month or ETC

I am pretty sure most people are fully aware of that.

I use both, so the extra $2 a month was fine by me.

It's good if you use it. I rarely ever did, kinda a waste for me.

 

[Harthan]

Being only the most casual subscriber, I'm only now finding out the only streaming option was available. I'm a bit disappointed, but then again I've only subscribed for about six months and thus have wasted the sum of $12. Not terribly torn up about it, really.

 

[Blue Chipper]

It's still relatively cheap for the service they provide. I'm highly satisfied with Netflix.

 

[D-Man]

I'm pissed off because I'm cheap.

 

[shattered dreams]

You're looking at it wrong. First of all, mailing DVDs, at this point, is probably much more expensive than streaming (envelopes, postage rates, people to handle product, etc.), now that they have their streaming service setup.

Which is why they are essentially decreasing the price of the mailing plans and keeping the cost of just streaming the same

Cable content providers are pulling their content from Netflix because they see the threat Netflix represents, or like in the case of HBO, requiring astronomical fees for the content. I'm guessing the MPAA is requiring greater license fees now they see Netflix is popular, and people would rather use Netflix than buy a DVD.

I have read they had a lot of favorable licensing contracts that are going to start running out around 2012 and then their costs in that regard are going to skyrocket for a lot of reasons.

You can get upset with Netflix all you want, but you're likely getting upset with the wrong people. Netflix is still a business, not a charity. And when their fees go up, they don't want to lose money, so they have to pass the costs on to the users.

If they said that maybe people could be misguided but they are blatantly lying to their customers and increasing the cost in excess of 50% at a time when they are presently doing nothing but positively when it comes to business. This is in addition to a 10-20% increase only a few months ago.

Like I said, getting mad at Netflix is probably being shortsighted in this instance. Most likely, it's due to factors beyond their control.

There is nothing shortsighted about not liking a significant price increase. The factors are not really our issue, that is for netflix to deal with. What may or may not be the cause isn't reason enough to defend them.

No matter how you look at it, this is not "ludicrous". It's quite reasonable, just more than before. Don't believe me? Try to find something better, that doesn't have advertisements assaulting you at every turn.

Redbox instead of the mailing option seems likely to be a much better bang for your buck to me.

This looks to me like they are trying to take in a lot of money (probably from overcharging for DVDs) that they will use to eventually make their product worth it when they build up the streaming more.

 

[Slyfox696]

Which is why they are essentially decreasing the price of the mailing plans and keeping the cost of just streaming the same

Not sure I follow. They are not decreasing the price of the mailing plans. Right now, streaming plus 1 DVD is $9.99 (we'll say $10, for ease of use). Break that up, it's $5 for streaming, and $5 for mail. Or, if you look at the streaming only option at $8, you might even surmise the mailing cost only $2.

Either way, the price of DVD mailing is going up.

I have read they had a lot of favorable licensing contracts that are going to start running out around 2012 and then their costs in that regard are going to skyrocket for a lot of reasons.

Which is why they need the extra money.

If they said that maybe people could be misguided but they are blatantly lying to their customers and increasing the cost in excess of 50% at a time when they are presently doing nothing but positively when it comes to business. This is in addition to a 10-20% increase only a few months ago.

How are they blatantly lying? Why does a price increase, which takes place at the beginning of next month (giving people an option to cancel, if they so wish) constitute lying?

Furthermore, how do you know this increase isn't necessary now? You don't think it's free to host video content and deliver across the Internet do you? They have to pay for Internet usage too, not to mention the security guys to keep from getting hacked, the maintenance guys to keep it running, etc. Heck, they may be looking to purchase more servers to provide better quality of reliability.

Just because the mailing costs more, doesn't mean the streaming doesn't cost them anything, and with their subscriber base growing, with more HD content, etc. they might actually need more money to continue making a profit.

Then again, maybe they just realize they can make more profit. They are a business, nothing wrong with that either.

There is nothing shortsighted about not liking a significant price increase.

Who said there was? What I said is that getting upset with Netflix is shortsighted. I mean, I was pretty clear about that.

The factors are not really our issue, that is for netflix to deal with. What may or may not be the cause isn't reason enough to defend them.

Well, sure it is. Because it's stupid to get mad at the messenger.

Let's assume what I said is correct, that their licensing from cable companies is going through the roof. Are you telling me you expect Netflix to operate at a loss? Of course not, then you'd no longer have the service. So instead of getting mad at Netflix, cancel your cable subscription. Take the money out of the TRUE greedy bastards, and then, not only will you have money for Netflix, you'll have money to spare, because I cannot think of a single cable TV provider who only charges you $16 a month for access.

Redbox instead of the mailing option seems likely to be a much better bang for your buck to me.

Then use Redbox. Of course, the selection is MUCH more sparse, but whatever suits you.

I rent from my local Hastings and Blockbuster. Costs me $1, as long as I'm not renting new releases. I have a Streaming+1 Netflix subscription now, and I never use the DVD part of it. I prefer the instant gratification, not to mention only get the DVD when I want it.

This looks to me like they are trying to take in a lot of money (probably from overcharging for DVDs) that they will use to eventually make their product worth it when they build up the streaming more.

Well, I think it's been apparent for a while now that Netflix is working to move to streaming only. The physical media approach, in addition becoming archaic, is just so unhandy and expensive. Not to mention, ripe for copyright infringement.

So even if they are trying to use DVD business to subsidize a move to all streaming...so what? Don't get the DVD plan, go with streaming only, hit up your local video rental store or Redbox, and let someone else pay for Netflix's move to streaming.

But I really don't see any reason to get mad about it. It's free market economy 101.

Netflix

 

[NSL]

FYI - Blockbuster only charges $.99 a day for rentals. Officially cheaper than Redbox. So, there's always that...

 

[shattered dreams]

Not sure I follow. They are not decreasing the price of the mailing plans. Right now, streaming plus 1 DVD is $9.99 (we'll say $10, for ease of use). Break that up, it's $5 for streaming, and $5 for mail. Or, if you look at the streaming only option at $8, you might even surmise the mailing cost only $2.

There was no such thing as a mailing only plan before this so you had to pay the full price for it. Now people that did not use the streaming get a discount. You are the one that said it cost more to mail than to stream. Unless you are conveniently ignoring the licensing costs this doesn't seem to be the case based on what they are doing now or your suspicious math (I suspect I could surmise the streaming only costs 2 dollars in a similar fashion).

Which is why they need the extra money.

I agree. The extent of how much more they need and when they need it is my only question.

How are they blatantly lying? Why does a price increase, which takes place at the beginning of next month (giving people an option to cancel, if they so wish) constitute lying?

Possibly, overstated and I know PR is part of the game but I do not like having my intelligence insulted. I feel the way they have tried to "spin" this price increase does just that.

Furthermore, how do you know this increase isn't necessary now?

I don't but you do not know it is either.

Just because the mailing costs more, doesn't mean the streaming doesn't cost them anything, and with their subscriber base growing, with more HD content, etc. they might actually need more money to continue making a profit.

How does their subscriber base growing not give them additional money? It is plenty plausible they need more money in spite of doing well, 50% increase more seems suspicious to me though.

Then again, maybe they just realize they can make more profit. They are a business, nothing wrong with that either.

Nope, but it would certainly be fair to be frustrated with such an approach.

Well, sure it is. Because it's stupid to get mad at the messenger.

Let's assume what I said is correct, that their licensing from cable companies is going through the roof. Are you telling me you expect Netflix to operate at a loss? Of course not, then you'd no longer have the service. So instead of getting mad at Netflix, cancel your cable subscription. Take the money out of the TRUE greedy bastards, and then, not only will you have money for Netflix, you'll have money to spare, because I cannot think of a single cable TV provider who only charges you $16 a month for access.

The messenger of what? If it is that costs to stream stuff are rising then sure that is misguided. If it is Netflix saying Netflix wants more profit then it is fair to be frustrated with them.

How do you know cable isn't just carrying the price of doing business on to the consumers etc? I cannot think of a single provider that doesn't have any live content or current episodes of shows (yes, many of these can be easily supplemented for now). Assuming you are willing to haggle every year cable prices are pretty much in line with anything satellite charges when you consider what you get.

Then use Redbox. Of course, the selection is MUCH more sparse, but whatever suits you.

I rent from my local Hastings and Blockbuster. Costs me $1, as long as I'm not renting new releases. I have a Streaming+1 Netflix subscription now, and I never use the DVD part of it. I prefer the instant gratification, not to mention only get the DVD when I want it.

Whichever option someone might choose netflix probably just lost at least 2 dollars a month on a lot of people. The price on DVDs by mail and the service just isn't competitive. I do agree that this isn't necessarily a reason to be frustrated as much as just take your business elsewhere, however, that seems to fall under an umbrella that could describe frustration anyway.

Well, I think it's been apparent for a while now that Netflix is working to move to streaming only. The physical media approach, in addition becoming archaic, is just so unhandy and expensive. Not to mention, ripe for copyright infringement.

Not sure if I would use "archaic" just yet but it is certainly the way of the future. I am not necessarily sold on the expense factor yet. The only reason much of this stuff was so cheap is that there wasn't much of a market for it. Once the demand grows for streaming content the price is going to go up on both sides.

So even if they are trying to use DVD business to subsidize a move to all streaming...so what? Don't get the DVD plan, go with streaming only, hit up your local video rental store or Redbox, and let someone else pay for Netflix's move to streaming.

Sounds good to me. Only reason I am a little annoyed is they do have a solid selection that I had enjoyed for a long time that is no longer worth the price they charge. Oh well.

 

[Steamboat Ricky]

I'm pissed off because I'm cheap.

LOLZ

 

[Slyfox696]

There was no such thing as a mailing only plan before this so you had to pay the full price for it. Now people that did not use the streaming get a discount. You are the one that said it cost more to mail than to stream. Unless you are conveniently ignoring the licensing costs this doesn't seem to be the case based on what they are doing now or your suspicious math (I suspect I could surmise the streaming only costs 2 dollars in a similar fashion).

Not sure I understand. Are you really trying to tell me mailing costs less now than before because some people MIGHT not have used the streaming? That's silly.

Regardless of what you used, you paid for streaming + DVD. Even if you didn't use one or the other, the fact is you were paying for that service. As such, if you split the costs evenly, it was $5 for each service.

I agree. The extent of how much more they need and when they need it is my only question.

You're trying to claim they're going to make less money, and then question how much more money they really need?

Not really sure what you're getting at.

Possibly, overstated and I know PR is part of the game but I do not like having my intelligence insulted. I feel the way they have tried to "spin" this price increase does just that.

Your intelligence is insulted because they're breaking up price plans to reflect the cost of each?

That's not PR, that's just honesty. Sorry if you're insulted by honesty. Probably says more about you than them though.

I don't but you do not know it is either.

I'm not the one complaining.

How does their subscriber base growing not give them additional money?

Because you have to support it. If I add one subscriber, that's $120 a year. A new server costs a minimum of a couple thousand dollars, even with the fairly low price servers Netflix probably uses (for various reasons).

As you can see, adding subscribers, doesn't automatically add profit.

Nope, but it would certainly be fair to be frustrated with such an approach.

I've never understood that mentality. Why should we be frustrated with someone trying to make money. America is a country in which profits are the driving motivation for any business. Any adult that does not understand that probably doesn't do well in society.

No need to get upset about it, if you don't feel the price reflects the value, then you don't buy. It's that simple. No need to get upset, especially considering you don't know the reasons for the price increase.

The messenger of what? If it is that costs to stream stuff are rising then sure that is misguided. If it is Netflix saying Netflix wants more profit then it is fair to be frustrated with them.

How does that make sense. In what world do people live in which allows them to get upset because people want to make more money? I mean, do you work for free at your job? Do you end the month and say "Well, I came out with $200 in my bank account than I had before the beginning of the month, so I better get rid of that money"?

How do you know cable isn't just carrying the price of doing business on to the consumers etc?

My comment was predicated upon the idea that Netflix is being charged more to carry content because the cable providers are increasing their license feeds. At that point, they're not carrying the price of doing business on to consumers, it doesn't cost them anything to license content to Netflix.

See what I mean now?

Whichever option someone might choose netflix probably just lost at least 2 dollars a month on a lot of people.

Which is likely offset by the fact they don't have to order as many copies of physical media, they don't have to pay for envelopes, they don't have to pay for postage, etc.