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Netflix Deflects Rage Over Price Increase

timothy posted more than 3 years ago | from the let-them-drink-cappuccino dept.

Media 722

oxide7 writes "Netflix provoked an unprecedented outpouring of backlash across the Internet as the company unveiled plans to raise prices on its movie-rental services. The company said it would raise the Internet-plus-DVDs-in-the-mail plan from $9.99 per month to $15.98 per month late Tuesday sparking protests and rage across the subscriber base. Netflix brushed off the criticism however. 'We knew there would be some people who would be upset,' company spokesman Steve Swasey said. 'To most people, it's a latte or two,' he added."

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No rage, just a lost customer. (4, Interesting)

Kenja (541830) | more than 3 years ago | (#36765782)

Canceled as soon as they sent email with their new pricing scheme. Simply not worth that much money, especially with competition from Amazon and Google in the works.

Re:No rage, just a lost customer. (5, Insightful)

Jeremiah Cornelius (137) | more than 3 years ago | (#36765908)

Let them drink Latte...

My god! The stunning arrogance of the McMansion aristocracy.

Re:No rage, just a lost customer. (4, Insightful)

rwven (663186) | more than 3 years ago | (#36765912)

The fact is that shipping through the mail is just really expensive compared to streaming. Netflix needed to make this decision sooner or later, and I don't blame them for doing it. They've been talking about how expensive the mailings are for a long time now.

Re:No rage, just a lost customer. (0)

Anonymous Coward | more than 3 years ago | (#36766098)

If shipping through the mail is more expensive than streaming, why are they charging the same for both?

Re:No rage, just a lost customer. (5, Insightful)

Dunbal (464142) | more than 3 years ago | (#36766110)

So expensive that they were able to build a huge company on it but now, suddenly, it's not profitable. Wake up and smell the cash grab.

Re:No rage, just a lost customer. (5, Insightful)

OldeTimeGeek (725417) | more than 3 years ago | (#36766314)

The cash grab is coming from the content providers. Netflix has become a major player so they want a bigger share of the pie [cnn.com] .

Re:No rage, just a lost customer. (5, Insightful)

neurocutie (677249) | more than 3 years ago | (#36765942)

"Simply not worth that much money, especially with competition from Amazon and Google in the works." But the writing is on the wall that the content providers are going to be driving up the prices on ALL such online streaming services. Netflix just happens to be the first and biggest. As articles have said, Netflix USED BE just a "left overs" service, at least from the view point of the content providers (studios, etc). That is, the studios thought that MOST people bought DVDs and saw movies in theaters and Netflix was just there to "mop up" the small fraction of the market that didn't pay through the other channels. But now the studios see that Netflix is rapidly become a MAJOR if not THE predominant channel for customers to view content. So as revenues drop fro DVD sales, the studio EXPECT Netflix, Apple, Amazon, Hulu, Google, etc to raise prices to make up for the shortfall elsewhere. Point is, short of piracy, don't count on finding low cost channels for content from the studios to last forever.

Re:No rage, just a lost customer. (1)

loteck (533317) | more than 3 years ago | (#36765944)

Same here. No rage or emotion involved, just don't think its worth it, so I immediately cancelled. I wonder how many there are like us?

Re:No rage, just a lost customer. (2)

jimbolauski (882977) | more than 3 years ago | (#36766134)

There must have been a little emotion because the change doesn't happen until September 1st.

Re:No rage, just a lost customer. (3, Informative)

localman57 (1340533) | more than 3 years ago | (#36766254)

At some point it probably doesn't matter that much. Netflix is likely to keep enough people to be able to keep the lights on. And the price they pay for content will likely be proportional to their number of users, as will their bandwitdh costs, so their single biggest costs will scale up or down with their user base, keeping the margin per user relatively flat. If they can increase their margin by 200% at a cost of 30% of their users, that's a win.

Personally, I think it's a smart move. Netflix has had by far the greatest success monitizing the content delivery business (excluding the wire-to-your-house providers like comcast or AT&T). Google and Hulu still have to figure out the business plan (Youtube is popular as shit, but hard to make money on). This gives netflix a chance now to try and raise margins, in order to try and gain enough capital clout to fight with their likely ultimate rivals for exclusive content, Comcast, AT&T, etc.

The need to shoot for the moon now and try to get to the point where they can square off against the 800 pound gorillas, or they'll end up like Tivo.

Inflation (1)

Colin Smith (2679) | more than 3 years ago | (#36766052)

That simple.

You're going to stop being a customer all over the place.

 

Re:Inflation (0)

Anonymous Coward | more than 3 years ago | (#36766166)

A 60% increase in one go is 15-20 years worth of inflation.

Re:No rage, just a lost customer. (1)

MindStalker (22827) | more than 3 years ago | (#36766102)

I have Netflix but I hardly ever used it, so when the notice came out I switched to their 4.99 plan. Its slightly less than I use now, but meh.

Re:No rage, just a lost customer. (0)

Anonymous Coward | more than 3 years ago | (#36766124)

I agree, there's no reason to get upset about the increase. If they were just arbitrarily raising it to make more profit, that would be one thing, but the reason for this is clearly because they're about to see a huge increase in streaming costs, and they need to pay for it somehow.

The only thing that did annoy me was the manner in which they presented it: "Now you have a choice". We already had a choice...the streaming only option was already available. The only new choice was to get DVDs without streaming, which was never really such a big concern since they never raised the price when they added streaming, so it's not like you'd feel like you were paying extra for a feature you didn't want.

Re:No rage, just a lost customer. (1)

poetmatt (793785) | more than 3 years ago | (#36766180)

yep, cancellation on the way.

Netflix is raising prices and reducing access. Since when did they think this would be a good idea?

Re:No rage, just a lost customer. (1)

wcrowe (94389) | more than 3 years ago | (#36766212)

Same here. They're fooling themselves if they think that only a few customers are upset about the outrageous 60% price increase. Only a small percentage will actually say anything. There are a lot of us who know that our complaints will be ignored.
 

Marie Antoinette (2)

naroom (1560139) | more than 3 years ago | (#36765798)

And Swasey said, "Let them drink lattes..."

Re:Marie Antoinette (1)

doggo (34827) | more than 3 years ago | (#36765838)

Hey Swasey, ya want one lump, or two, with yer latte comment?

Re:Marie Antoinette (0)

Jeremiah Cornelius (137) | more than 3 years ago | (#36765990)

Mr. Swasey, that is the sound of me dual-booting... Your arse, mate!

Re:Marie Antoinette (4, Insightful)

Anonymous Coward | more than 3 years ago | (#36765980)

A misattributed, misunderstood literary anecdote used to draw a supposed parallel between starving peasants and Netflix users? Ah, Slashdot, you never cease to disappoint me!

Re:Marie Antoinette (1)

rvw14 (733613) | more than 3 years ago | (#36766026)

Unfortunately in this economy my family has given up all lattes, eating out, movies at the theater, and other non-essential items just to make ends meet. We cut cable a year ago and kept netflix as our only source of entertainment because I could justify the small cost. For a CEO, a couple lattes may not be much, but my budget is so tight that even $10 makes a difference.

Re:Marie Antoinette (0)

Dunbal (464142) | more than 3 years ago | (#36766200)

What do you mean "this economy"? If the government is to be listened to, everything is just peachy! The Dow is above 12,000! Recovery, right?

Meanwhile, at the MAFIAA (1)

Ironchew (1069966) | more than 3 years ago | (#36765800)

Cyberterrorist hackers are pilfering "a latte or two"...wait...that doesn't sound scary enough.

Caffeine is a drug (0)

Anonymous Coward | more than 3 years ago | (#36765820)

I'm not giving up my drug habit, Netflix has to go.

Re:Caffeine is a drug (1)

earls (1367951) | more than 3 years ago | (#36766082)

I hear that. I feel the same way about my cocaine. This Netflix change has really pushed my budget over the edge.

How to destroy your internet based business (1, Insightful)

tmosley (996283) | more than 3 years ago | (#36765824)

Step 1: Almost double the price. Step 2: ?? Step 3: Bankruptcy!

Re:How to destroy your internet based business (1)

Anonymous Coward | more than 3 years ago | (#36765896)

step 2 would be to arrogantly brush off complaints from paying customers

Re:How to destroy your internet based business (1)

madhatter256 (443326) | more than 3 years ago | (#36765962)

They don't stand a chance against google...

Re:How to destroy your internet based business (1)

rwven (663186) | more than 3 years ago | (#36765972)

Netflix is trying to put the DVD side with a price to adequately cover its costs (which are substantial), and trying to push as many users as it can to the streaming side. I've been expecting this for a long time, and I think it was a good decision.

Re:How to destroy your internet based business (1)

WiiVault (1039946) | more than 3 years ago | (#36766126)

Are you suggesting that Netflix has been losing money on DVDs? Cuz if so how did they make it before streaming was even offered? I think you give them way to much credit. If anything word is that lots of their streaming contracts are ending soon, and guess what? Big media wants a bigger slice of the pie. Supporting what is essentially a doubling of price for many users is giving warm fuzzies to an entity that only has maximizing profits, while minimizing services as much as possible.

Re:How to destroy your internet based business (0)

Anonymous Coward | more than 3 years ago | (#36766228)

Then why would it make the DVD side exactly the same price as the streaming side ($7.99)?

It is still Cheaper than Cable (5, Insightful)

Reverand Dave (1959652) | more than 3 years ago | (#36765832)

and I don't have to sit through a lot of idiotic commercials.

It still has no live news or live sports (1)

tepples (727027) | more than 3 years ago | (#36765976)

Cable TV is still worth it if your household includes someone who is a fan of audiovisually presented national news (e.g. MSNBC, Fox News, HLN) or those live sports that are not on the farmer five but still blacked out online (e.g. ESPN, Versus). If there were a way to get those other than cable TV, I imagine more TV+Internet customers people would be switching from expanded-basic TV to Netflix streaming plus only enough TV to get an Internet line into the house.

Re:It is still Cheaper than Cable (1)

countertrolling (1585477) | more than 3 years ago | (#36766024)

It is still more expensive than bittorrent..

What commercials?

Production values of torrentable works (1)

tepples (727027) | more than 3 years ago | (#36766160)

It's been my understanding that the works lawfully available over BitTorrent have far lower production values than the works available over Netflix. Or what am I missing?

Latte Defense (5, Insightful)

Gr33nJ3ll0 (1367543) | more than 3 years ago | (#36765846)

Why are so many things justified with the already unjustifiable cost of a Latte? Just as two wrongs don't make a right, two prices that are too high, don't make the second any cheaper.

The update does not make sense (4, Insightful)

Superken7 (893292) | more than 3 years ago | (#36765852)

Most people are probably not really angry because of the money increase, as there are few good rivals (not for long, I hope), but because nothing of value was added to the service to justify the increase.

I bet most people would be happy if the price increase would have arrived with a 100% streaming coverage so people can stop relying on DVDs, or maybe some new cool feature.
Instead, the UI has been somewhat degraded for some, and now the service is almost twice the price. It's not just "some people", I'm sure _most_ people are not happy with the "update".

Re:The update does not make sense (2)

wpi97 (901954) | more than 3 years ago | (#36766074)

A price increase does not have to be justified by value added at all. It only has to be justified by enough demand to keep the company profitable. This is very simple really. If enough people cancel their subscription as a result of this, Netfilx will either fold, or lower its prices. On the other hand, if enough subscribers eat the increase, so much the better for Netflix.

Re:The update does not make sense (5, Insightful)

Anonymous Coward | more than 3 years ago | (#36766094)

I bet most people would be happy if the price increase would have arrived with a 100% streaming coverage so people can stop relying on DVDs, or maybe some new cool feature.

If you want 100% streaming coverage, $7.99 is way too cheap. Most people are simply being irrational here. The cost of doing business is going up for Netflix, so the cost to pay for the service is going up with it. Netflix gave us all way too good a deal for way too long which has caused most consumers to turn into spoiled little brats.

Re:The update does not make sense (5, Insightful)

gorzek (647352) | more than 3 years ago | (#36766238)

Yeah, $8 a month for unlimited streaming is a fucking steal. Assuming you watch only an hour a night, you are paying all of 26 cents an hour for your entertainment, a better deal than just about anything else out there.

Re:The update does not make sense (1)

hood8263 (1396373) | more than 3 years ago | (#36766106)

I don't see the big deal with the price increase... up here in canada we are streaming only for 8 bucks a month. Mail isn't cheap and sending out all these DVD's gets expensive.

Re:The update does not make sense (0)

Anonymous Coward | more than 3 years ago | (#36766252)

Not everything is available via streaming, though.

Re:The update does not make sense (1)

Baloroth (2370816) | more than 3 years ago | (#36766176)

The thing is some (many?) customers are likely to use primarily either the DVD mail route OR the streaming route, and maybe occasionally the other. I know I, for instance, used exclusively the DVD route (a few years ago, lousy internet).

Now, I haven't even looked at their pricing scheme recently, but I know from what I've read about the change people who sign up for just the DVD route or just the streaming will end up saving money (2$USD per month, 24 per year), while people who use both will have it increased 6 dollars a month... 72$ a year... wait, you're right, that's pretty bad. Looks like I'll be sticking with Hulu and other sources for now. Just as I planned on doing even before this. Seriously, the streaming selection is too small and who actually uses discs anymore?.

Also, isn't this new plan only 1 DVD at a time? I remember ~18$ got me three + unlimited streaming had I been able to use it (could be wrong about the streaming, know there was something like that). Looks like Netflix will probably be gone in a few years. Shame, too, it was awesome there for a while.

Grammar Fayle (0)

Anonymous Coward | more than 3 years ago | (#36765860)

"The company said it would Netflix raise the Internet-plus-DVDs-in-the-mail plan ..."

So what exactly is a Netflix raise, as opposed to a traditional raise?

Re:Grammar Fayle (1)

just_another_sean (919159) | more than 3 years ago | (#36765960)

A raise of approximately 63%?

CHEAP MOTHERFUCKERS !! (-1, Troll)

Anonymous Coward | more than 3 years ago | (#36765880)

What a bunch of cheap ass motherfuckers motherfuckers !!

You got the time to watch their shit so pay up and shut the whine hole !!

And drink your fucking latte, motherfuckering milk-ass motherfucker !!

They don't get it (1, Informative)

southpolesammy (150094) | more than 3 years ago | (#36765892)

This isn't about the use of disposable income. It's about having a huge increase in cost with absolutely nothing in return. Now, if they'd said that they'd finally ripped their DVD collection to streaming, or even somewhere near it, I'd listen. Or perhaps they're finally going to get more recent titles in line with Blockbuster or Redbox. But they're not.

This is a pure, unadulterated money grab. So I'm grabbing mine back before they get the chance. Canceled my service yesterday. And per http://www.hackingnetflix.com/2011/07/new-pricing-poll-what-are-you-going-to-do.html [hackingnetflix.com] , I'm not the only one. Over 1/3 say they are quitting. Explain that to the shareholders, NetFlix execs.

Re:They don't get it (2)

master_kaos (1027308) | more than 3 years ago | (#36766010)

so a third of a poll says they are going to cancel. lets take that at face value. Double price.. third leave.. well looks like it is still worth doubling the price! Of course when push comes to shove, I am betting 1/2 of the people who say they are going to cancel, won't cancel.

Re:They don't get it (0)

Anonymous Coward | more than 3 years ago | (#36766054)

If the lost 1/3 of their customers, but increased their prices 60%, they're still making 6% more revenue but now there infrastructure costs have dropped by a 1/3. I'm sure the shareholders would be fine with it.

Re:They don't get it (1)

rbarreira (836272) | more than 3 years ago | (#36766236)

I doubt their infrastructure costs are proportional to the number of users.

Re:They don't get it (1)

Certhas (2310124) | more than 3 years ago | (#36766060)

Using your numbers only, let me explain it to the shareholders: "Revenue side: 2/3 * 16 > 10 Cost side: 2/3 1 We made a move that both increases revenue and reduces cost. We're doing our job and making you more money."

Re:They don't get it (5, Insightful)

Nemyst (1383049) | more than 3 years ago | (#36766118)

If 2/3rds of the user base stays with a 50% price increase, then they've increased revenue while decreasing expenses (less bandwidth usage).

Question is whether it'll stay at just a third leaving.

This could be significant (1)

Overzeetop (214511) | more than 3 years ago | (#36766298)

Lots of sibling posts are missing the fact that if 1/3 of their subscribers actually leave (unlikely), they still won't make more money because many of their remaining subscribers are likely to drop either streaming or mail, resulting in a net revenue loss of 20% (gross) per retained subscriber. Chances are, those that will be dropping one side of the service weren't using the other side, so that "extra" service was almost exclusively profit.

I understand why they did it (specter of higher licensing fees), but they probably could have softened the blow a bit. This is the wrong way to boil a frog.

60% (1)

John.P.Jones (601028) | more than 3 years ago | (#36765894)

A couple bucks more is exactly the wrong way for them to be looking at this. It is a 60% price increase (A little less for me on a 2 BluRay plan) but they need to be offering real improvements to service in exchange for this level of price increase, they need to be promising faster new releases on disc and better streaming options too not just now we want 60% more (they could get away with 25% more, but this is excessive.) I'll be dropping to the 1DVD (no more BluRays for a while) w/ streaming plan in response.

I wanted to call to offer another plan (1)

malignant_minded (884324) | more than 3 years ago | (#36765930)

But you couldn't get through and that is the only means of communication they have besides a forum. What I would like to propose to them is this. I'll pay a dollar or more a month for the streaming plan which puts me in the maybe a DVD category. For each DVD I rent I pay like 2 or 4 dollars. This allows me to get a DVD if I really want it but also not have a plan I never use. Currently I have the streaming and 1 DVD plan and I have had that DVD for probably 2 months so I really doubt I will opt for the DVD plan on top of the streaming at the current cost, I would just bittorrent for the occasional item. My suggestions seems fair, they get a few extra dollars a month for people that may never use the feature but if people get enough DVDs a month they would be better served just adding the DVD plan. The extra buck or two a month for streaming with possible DVD would be such a low cost that people would probably rather have the option then not, like phone insurance. :)

In other news (1)

Anonymous Coward | more than 3 years ago | (#36765936)

Netflix is accepting applications for a new company spokesman. Go to Netflix.com/jobs for more information.

Perception (1)

Trillan (597339) | more than 3 years ago | (#36765946)

As a Canadian, the only deal available to me is $7.99 for streaming only. I looked over the catalog and decided there was enough there to be worth $7.99/month.

So what's not worth $7.99 to Americans, the DVDs or the streaming? Given that your streaming library is more extensive, I assume it's the DVDs. Cancel that and enjoy the streaming.

I plan to stream a few episodes of a series I'm watching over 3G from my hospital bed later today.

Re:Perception (0)

Anonymous Coward | more than 3 years ago | (#36766204)

As a Canadian, you don't have to pay for your hospital bed. That $1,500+ savings makes up for the $15.98 Netflix charges.

Re:Perception (1)

tepples (727027) | more than 3 years ago | (#36766232)

So what's not worth $7.99 to Americans, the DVDs or the streaming?

The streaming. I'm not a Netflix subscriber yet, but I imagine that once a subscriber has finished watching movies that his friends have recommended, he ends up with a lot of movies that aren't available on streaming. How should one watch those movies?

Re:Perception (1)

hood8263 (1396373) | more than 3 years ago | (#36766278)

this exactly

Streaming would be fine (1)

stokessd (89903) | more than 3 years ago | (#36765982)

I'd be super happy with the streaming only if they have more than a few titles available for streaming. I'd bet there would be a whole lot less rage if they said:

1) we are splitting the plans and raising the rates on the combination. But:
2) we are vastly increasing your streaming offerings so many of you will save money by streaming only.

The streaming offerings are crazy at times. For example they will have three of four disks of a series available for streaming, but they 4th is by mail only. WTF?!

I've got news for them: all the disks are available for streaming guys. And they are available for streaming for free...

Sheldon

Re:Streaming would be fine (1)

hood8263 (1396373) | more than 3 years ago | (#36766302)

Come to Canada before you start complaining about their lack of content...

let them drink lattes (0)

larry bagina (561269) | more than 3 years ago | (#36765988)

you, sir, can chug some frosty piss from tub girl's asshole.

I'm cancelling... (1)

DogDude (805747) | more than 3 years ago | (#36765994)

I'm cancelling the streaming service. There's tons of stuff available for streaming, but 99.9% of it is absolute garbage.

Back to Megavideo (0)

Anonymous Coward | more than 3 years ago | (#36765998)

I didn't watch streaming enough, and also never ordered any DVDs despite keeping the option at the last price change. I thought it would be nice as a just-in-case.

So I can go from paying 10 and change to 8, or maybe back to 0. I guess this would be a good time for Hulu to get their head out of their ass and have more significant across the board offerings. It is hilarious I can watch something for free on hulu on my PC, but not be able to watch it with my TV empowered with a paid Hulu plus subscription. Netflix has been bargain bin for streaming offering for a long time. I doubt they will offer the complete catalog, most likely due to supposed user feedback and certainly they don't respect grandfathering or customer loyalty.

I won't feedback, but I will stop feeding.

I jumped ship. (1)

mstrcat (517519) | more than 3 years ago | (#36766002)

So I'm one of those netflix subscribers that jumped ship. I felt the price increase was more than the service was worth. Netflix picked a very bad time to increase prices, and in particular picked a very very poor way to do it. They could have hiked prices slowly over time, and it would have likely not been enough to really re-evaluate the value I get from them. To raise prices 27% at once was too much to swallow. And worst of all was their assumption that I should automatically be subcribed to their new plans. Good bye, netflix. It was nice knowing you.

"Netflix raise"? (1)

nabsltd (1313397) | more than 3 years ago | (#36766016)

FTFS:

The company said it would Netflix raise the Internet-plus-DVDs-in-the-mail plan

What, exactly, does it meant to "Netflix raise" the price of something?

Re:"Netflix raise"? (1)

Bill Dimm (463823) | more than 3 years ago | (#36766158)

What, exactly, does it meant to "Netflix raise" the price of something?

It means to increase it by such a large percentage that you need dental work when your jaw hits the floor.

2 times in a year (1)

WiiVault (1039946) | more than 3 years ago | (#36766018)

What bothers me most is that this is the second time in a year rates have gone up. My current $8.99 plan will soon be $15! I know this is mostly the studios putting the heat on Netflix, but it's still bullshit to not offer any discount for bundling DVD and streaming as the current "deal" provides. I always liked Netflix because I felt that like Steam, even though they have DRM, they provide a service (instant streaming) that helps balance the equation. Now I can't help but re-think my position as a paying customer when torrents are only marginally more difficult to acquire.

Re:2 times in a year (1)

WiiVault (1039946) | more than 3 years ago | (#36766222)

I meant $9.99 and 15.99 sorry for the typos. Point still stands.

They have the right to charge what they wish . . . (1)

Joey Vegetables (686525) | more than 3 years ago | (#36766022)

And we have the right to cancel our service if we don't like it. That is how a free society works. I don't like it any more than the next person; I probably will cancel streaming since I rarely use it and it doesn't support my OS of choice (Linux), and I might well switch if I knew of a better value for the things I watch, but I don't, and the higher-priced Netflix is still the best option for me for now. If Amazon and Google come out with some truly competitive offering, at that point Netflix had better think carefully about pricing because a lot of folks including myself might switch . . . or might not, if the prices come back down. Again, that's how a free market works. If you like something, vote for it with your dollars; if you don't, vote for something else you like better instead.

Re:They have the right to charge what they wish . (1)

LBArrettAnderson (655246) | more than 3 years ago | (#36766226)

Agreed, though I'm going to cancel my DVD and keep streaming. I only get (got) a DVD maybe three or four times a year, and while the math may not back me up, it was worth it to be able to get one whenever I wanted. Now not so much. I'll drop that service, keep streaming, and if I need something not on "Instant," I'll rent it on Amazon's streaming service.

I'm willing to bet that a significant number of people will drop the service that they use less often (mail or streaming).

New UI (0)

Anonymous Coward | more than 3 years ago | (#36766036)

I'm much more enraged about the new UI, especially the new UI that has been pushed out to the PS3.

already cancelled (1)

vanyel (28049) | more than 3 years ago | (#36766042)

I cancelled netflix last winter after the prices went up 50% in a year...

No Competation = No Worries (1)

jimbolauski (882977) | more than 3 years ago | (#36766068)

Even if 10% of their customers leave because of this increase they will make it back and then some with a 60% price increase. A competitor might get the suits nervous enough to decide that this was a bad idea $16 isn't exactly an ass raping either.

Mailing Costs (1)

Pinky3 (22411) | more than 3 years ago | (#36766076)

Netflix is not interested in mailing you DVDs for $2 a month. From their point of view, if you have streaming for $8, the correct price for adding mailing is $8. You may think of it as paying $8 for mailing and expect that you should be able to get streaming for an extra $2, but Netflix doesn't think of it that way. If you want them to maintain warehouses full of DVDs and mailers and pay for postage, they want you to pay for all that. Their price is $8.

I gave up mailed DVDs months ago when the price went to $10 and they first started offering streaming only for $8. Now you have the chance to do the same.

Re:Mailing Costs (1)

h4rr4r (612664) | more than 3 years ago | (#36766308)

But then you only get 1 stream at a time. It used to be you got one extra stream for each dvd. How will they handle that now?

The unhappiness... (0)

Anonymous Coward | more than 3 years ago | (#36766078)

For me it comes more from the fact that Netflix was such a great company with great customer service.

This change isn't a positive for most customers. I imagine they've done the bean counting and decided that they'd make more money, at least in the short run, by doing this.

I think it's a horrible idea because of a couple of things:
1) There are other streaming services that they're now completing with directly. This wasn't the case before because they offered more than just streaming.
2) If I'm not doing streaming, then Redbox is a great option for me many nights. Especially since I only pay for what I use.

They're still a better option for me than the alternatives, but it's still a big step in the wrong direction.

Not all customers are good customers (0)

Anonymous Coward | more than 3 years ago | (#36766092)

I am sure they would love to lose bad customers. Pruning the tree is normally a good thing in the long run. If they bump prices by 60% but lose 30% of their customers, and probably 50% of their support fees, they will be laughing. Those of us that remain will get better service, the malcontents take their $9 ball and go home, and everyone is happy. I think it is a good move on their part.

Only a Latte or two? Not even close. (1)

weeboo0104 (644849) | more than 3 years ago | (#36766114)

There is a huge decrease in what is available if we go streaming only.

Out of the 13 DVDs in my queue, only 2 are available by streaming.
Most of those unavalable are Criterion Collection movies by Kurosawa and Ingmar Bergman.

If they remove Babylon5 from my streaming queue before I'm done watching the whole series, I'm going Narn on someone ass.

How to destroy a company with a near monolopy? (0)

Anonymous Coward | more than 3 years ago | (#36766116)

Simple. Increase pricing at rates much higher than inflation.

If they are profitable, they should stop trying to squeeze pennies out of their ass.People would not care if you raised prices by $1 every November for a few years, but people will walk on a 60% hike.

We would have kept the service, but we are moving to the "need something to do in winter" plan. And when the time comes to re-activate we will price shop.

Good Luck netflix!

The real problem (0)

Anonymous Coward | more than 3 years ago | (#36766130)

Isn't the cost increase itself, but that it was billed as a benefit to the customer. And they just raised prices earlier in the year. If they had come out and explained to the customers why they have to raise prices (licensing fees). The attitude they're taking is what's pissing people off.

Priced by Coffee (0)

Anonymous Coward | more than 3 years ago | (#36766140)

Considering how many products are suggesting they replace my daily coffee (or latte), I'd have to be drinking several dozen cups a day at this point to break even.

Doesn't fly with me. Quality, unlimited Usenet is only $10 a month.

Swasey's quote (1)

HikingStick (878216) | more than 3 years ago | (#36766148)

It should be modified to read "To most people who still have good jobs, it's a latte or two."

It's not that the price increase is so great... (3, Insightful)

TRACK-YOUR-POSITION (553878) | more than 3 years ago | (#36766152)

...it's the non-uniformity of it. If you currently have a streaming-only plan, there's no price increase. If you only watch DVDs and never stream, you could even save yourself $2. But if you do both, you could be paying 60% more. It doesn't really make sense to pay double the price, because the DVDs and streams are competing uses of the customer's time--if I stream a movie this evening, I'm probably not going to also watch a DVD. Ultimately the service isn't that expensive and if they just want to charge more then it's no big deal. But the new scheme seems designed to punish people who only primarily use one half of the service but occasionally use the other. If you most just stream movies but occasionally there's a DVD not available for streaming that you really want to see (and isn't at RedBox), or if you mostly just watch DVDs but someone visits your house and you'd suddenly like to watch a movie without waiting a couple days for it to arrive, then you have to pay a lot of money (relatively) just to dip a toe into the other half of the pool.

Did anyone do any research on this...? (0)

Anonymous Coward | more than 3 years ago | (#36766184)

This article is crap, do some research, they are doing this because the riaa and mpaa made 1 billion from it last year and are looking to make 10 billion this year. Netflix Grossed 2.1 billion last year but the profit was only ~201 million..Don't blame the middle man, blame the content providers..

I love how (0)

Anonymous Coward | more than 3 years ago | (#36766190)

So many people are quick to jump Netflix over the price hike, but obviously have not read any of the hundreds of news articles that explain the reasoning why the price hike happened. Netflix has to have contracts with people like Sony, Starz, etc, to do the streaming video and have a price set in them. The current contracts are either up or going to be up shortly, and the studios want more money, so they're re-negotiating the contracts with higher fees. Now, Netflix is a company, and as such they are expected to make money, so no, they are not just going to eat the cost of the increased fees that the studios are demanding, they are going to pass it on to you, the consumer, as any other company would.

In short, do not blame Netflix solely for the price increase. This is just one more way that the MAFIAA is screwing us, the little guy over. And do not be surprised when Amazon, Google, and Apple have to raise their prices as well. Hulu probably will not, but that's because they're owned by some of the studios, so they'll of course have the lowest price and will attract customers to them, so the MAFIAA doesn't have to worry about "getting their cut" from the company, you pay them directly.

Not Worth It (1)

TheNinjaroach (878876) | more than 3 years ago | (#36766198)

When it takes 3-4 days to turn around a DVD, $8 for a DVD-only plan simply isn't worth it. The few extra bucks I was spending a month before, then sure.

I guess Netflix would rather not have the money I was paying for that part of the service I rarely used.

IP owners have inflated view of the worth (1)

ProfanityHead (198878) | more than 3 years ago | (#36766208)

Netflix is likely getting hammered by the IP owners who have the crazy idea that their reruns of The Munsters are worth much more than reality.

Yes, Netflix is giving us a HUGE increase and nothing in return. So are the owners of the content. Much more so IMO.

Anti-competitive behavior (4, Insightful)

digitalderbs (718388) | more than 3 years ago | (#36766210)

What irks me about the price increase has nothing to do with the price of lattes or the fact that we're not necessarily getting anything more in return. It's the anti-competitive behavior. I suspect that the margins on their current pricing were set to be small enough to snuff out Blockbuster. Now, without real competition (incl Amazon's service), they can reap the fruits of their 'sacrifices.'

Nickle and dimed to death (0)

Anonymous Coward | more than 3 years ago | (#36766214)

"A latte or two?" Yeah, fuck you. That's what every company is doing these days. "Oh, it's only a tiny increase" times everything you buy adds up to a shit-ton of money.

People have less and less and are cutting budgets while companies like Netflix are increasing prices to keep the profits going up even as people cut back. It's a screwed up situation... At this rate eventually something is going to give in a very bad way.

Surprised? (1)

Gavrielkay (1819320) | more than 3 years ago | (#36766216)

The blog post that was published about this price increase actually tried to sound surprised that the DVD by mail business hadn't dried up in favor of the streaming side. But with less than half the content available for streaming this should never have surprised anyone. You need both sides of Netflix to make a worthwhile service. I was looking for an actual explanation along the lines of the studios dramatically raising licensing costs for streaming content. Instead they tried to spin it as a "good thing" that they were putting out new subscription plans. The marketing double speak made this rate increase even worse. You can't tell people that paying more for the same service is good for them. You can try to convince them that it is necessary or inevitable and they may understand, but good? Not a chance.

Went streaming only awhile ago.. (1)

Roogna (9643) | more than 3 years ago | (#36766220)

But what I might cancel over is the horrible new website...
I mean, the sorting is gone, they lost at least a thousand ratings I'd marked, and apparently no longer have any suggestions for things I should watch for Drama... except for things I specifically have marked as "Not Interested". ...

I was playing nice... (1)

SeeSp0tRun (1270464) | more than 3 years ago | (#36766224)

The only reason I had Netflix was to play civilly with the MPAA. Netflix has betrayed me, and thus, I go back to the dark reaches of the internet 100% of the time.

What's the opposite of killing two birds with one stone? That's what just happened in this case.

You're just a consumer ... (1)

Anomalyst (742352) | more than 3 years ago | (#36766234)

... suck it.
Signed,
Your corporate overlords

Latte? (0)

Anonymous Coward | more than 3 years ago | (#36766248)

That thing that I stopped buying two years ago because the economy is in the shitter?

Really? (0)

Anonymous Coward | more than 3 years ago | (#36766272)

Paying $15 a month to stream media is comparable to the poverty of the French revolution? Kenja said it perfectly, don't pay it if it's not worthwhile to you. Not sure why people complain about optional things.

How much of this is Netflix vs.content makers? (1)

Bloodwine77 (913355) | more than 3 years ago | (#36766292)

I know there has been a lot of outrage over Dexter disappearing from instant queue. However, that was the decision made by Showtime, not Netflix. Showtime is going to start streaming Dexter and Californication exclusively via their new streaming service, Showtime Anytime.

I also wonder how much of this price increase will go towards extending their streaming library. I would suspect streaming licenses is more expensive than DVD rental licenses and content producers are increasing what they charge Netflix.

I am not saying that Netflix is without fault, but a lot of the streaming availability issues and price issues may be due to content producers rather than Netflix themselves.

"most people" (1)

jonotown (1916722) | more than 3 years ago | (#36766294)

"most people" dont drink $3 latte's or have netflix accounts, they sure dont have a global perspective....

Unlimited Streaming not really Unlimited (0)

Anonymous Coward | more than 3 years ago | (#36766306)

I just got off the phone with tech support (because they don't have email or instant chat--way to go Internet based business) and I wanted to ask them if the new unlimited streaming service is really unlimited. I wanted to stream to 2 devices, under the current plan I cannot do that unless I upgrade to 2 DVD's at a time. The new "separate" plan coming is September is the same bull. If you want to stream on 2 devices you need the 2 DVD's at a time.

Personally all I want is to be able to stream on 2 of my 3 Netflix devices at one time. I can live without the DVD's in the mail.

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