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