Netflix Prices to Rise 60%

By Jeralyn, Section Media
Posted on Tue Jul 12, 2011 at 06:55:20 PM EST
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Update: Netflix customers are not taking the news well.

Is Netflix shooting itself in the foot by raising prices 60% and de-bundling streaming from physical dvds?

Customers in the United States who want both services will pay $7.99 per month to rent one DVD at a time plus $7.99 for unlimited streaming, or a total of $15.98 per month, the company said on Tuesday. The previous cost of this plan was $9.99 a month.

I think the problem for Netflix is that its offerings are dated. The best of the new movies aren't available for streaming. Why pay $7.99 for a new movie on DVD from Netflix when you can get it the same day it's released in HD for $5.99 via On Demand? (And avoid the hassle of fast-forwarding through four or five previews?) [More...]

For those who want to watch older fare they missed, and past seasons of TV series, Netflix makes sense. But for those of us who want to watch the most recent releases, On Demand is cheaper, available sooner and you don't have to pre-order.

When I first read about the increase this morning, I thought I'd cancel the DVD service. But then I asked myself how often do I watch their streaming service? The answer: Not often, it's really a "B" list of offerings. Then I thought maybe I'll cancel the streaming and keep the DVD service. But I hate deciding in advance what I'll feel like watching, and if you can only pay for the one or two at a time plan, the DVD's lie around for days because I'm not in the mood to watch today what I ordered three days ago.

My plan (2 dvd's and streaming) will now be $22.98 a month, before taxes. That's too steep. Netflix, it's been wonderful, but your offerings just aren't worth the price. I think I will end up canceling both streaming and DVD's.

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Netflix Prices to Rise 60% | 28 comments (28 topical)

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Guess I'll just keep going to the movies (5.00 / 2) (#8)
by oculus on Tue Jul 12, 2011 at 07:35:49 PM EST

every once in awhile.

Where else can I get that theater feeling? (5.00 / 3) (#15)
by Militarytracy on Tue Jul 12, 2011 at 09:01:17 PM EST

The too cold air conditioning after sitting there for an hour, and the always sticky floors of the old theater here. I don't know why they are always sticky, it makes me imagine that it could be generations of Jolly Rancher film mopped into the floor.

Josh and I want to see Cowboys and Aliens. There is an operating drive-in here and I don't know why but Josh and I love the silly drive in once in awhile, my husband hates it and he hates the idea of a movie about cowboys and aliens and he invited Josh and I to just go to the drive-in and leave him out of this. We will be delighted to :)


Does the drive-in still charge per car? (none / 0) (#16)
by oculus on Tue Jul 12, 2011 at 09:15:44 PM EST

How much? Have they improved the sound quality?


The sound comes through your (none / 0) (#20)
by Militarytracy on Tue Jul 12, 2011 at 10:32:41 PM EST

radio system now, you dial in the station number they give you. They usually charge per person but they do have carload nights sometimes. I think the last time we went it was $8 for me and $5 for Josh. You get two movies though. They attempt to pair up the current in theater movies so that a car of family will have two appropriate movies or adults can a very adult movie night out. They have an amazing snack bar though, like they used to have at drive-ins when I was a kid. They have hamburgers, fries, ice cream, the works.


Through the car radio? (none / 0) (#29)
by sj on Wed Jul 13, 2011 at 10:37:46 AM EST

If so, how does that work? Wouldn't it wreak havoc on your car battery? If not... ??

Still having trouble picturing it, but a drive-in movie sounds fun.


I suppose if you had a weak battery (none / 0) (#30)
by Militarytracy on Wed Jul 13, 2011 at 10:42:25 AM EST

it could be a problem. Everybody usually runs their car during intermission, but I think it is because we need some AC sometimes or some heat.


: heat and humidity in Bama (none / 0) (#32)
by jeffinalabama on Wed Jul 13, 2011 at 01:57:57 PM EST

means folks are unlikely to take out the back seat and sit in front of the car... off works for the bugs, but the sultry? She be there.

I'll just cancel it... (5.00 / 2) (#10)
by jeffinalabama on Tue Jul 12, 2011 at 08:33:59 PM EST

I like the streaming, because I watch a lot of Film Noir, old black and white stuff.

But economizing means a lot of things, and to tell the truth, even internet access is on the table given all of the free wifi available.

Film Noir.... (5.00 / 1) (#18)
by Rojas on Tue Jul 12, 2011 at 10:18:50 PM EST

That's my habit.
What can I say, old school or old fool....


Detective/crook, (none / 0) (#19)
by jeffinalabama on Tue Jul 12, 2011 at 10:26:40 PM EST

suits, a hat, a cigarette, a convertible, a blonde, drinks...

John Garfield.


john garfield, (5.00 / 1) (#23)
by cpinva on Tue Jul 12, 2011 at 11:11:59 PM EST

one of the most underrated actors of all time. had he not died so young, he'd have given bogey a run for his money. better looking too.


: And I like his politics, (none / 0) (#24)
by jeffinalabama on Tue Jul 12, 2011 at 11:14:53 PM EST

as well. Of course, that's part of what killed him so young.

i think im going to just stream (none / 0) (#1)
by pitachips on Tue Jul 12, 2011 at 07:04:16 PM EST

i really missed out on a lot of the tv shows in over the last 5+ years. that's really the only time i even fire up netflix nowadays.

Wow, I have not seen this yet (none / 0) (#2)
by ruffian on Tue Jul 12, 2011 at 07:08:59 PM EST

I will have to look. I don't use the streaming all that much. They don't seem to have much of what I want available that way. I think I will go with DVD only - I mostly use Netflix for old movies and TV series' that I missed the first time around, and most of them are not 'streamable' anywhere as yet. For streaming new releases I can use apple tv or amazon streaming.

Increased price for less service - that really blows.

Story is that Netflix is getting squeezed (none / 0) (#3)
by andgarden on Tue Jul 12, 2011 at 07:14:02 PM EST

by the content providers. I read about something like a 10x increase in cost for them for the streaming stuff.

That said, I don't think it's going to work out wonderfully for them. I'm sure they would like to offer new movies on demand. But what's the point of replicating cable?

If they had better streaming (none / 0) (#13)
by Militarytracy on Tue Jul 12, 2011 at 08:55:45 PM EST

Some people feeling pinched could probably drop expensive monthly cable packages and seek more service from them. If they could replicate cable a little more closely I see my daughter who is on a tight budget going in that direction. But it doesn't look like that is going to happen.


But doesn't Hulu have a lot of stuff (none / 0) (#17)
by jeffinalabama on Tue Jul 12, 2011 at 09:28:50 PM EST

the day after? Heck, when I mis "Burn Notice," I go to USA the next day and watch it. Commercials? yep... just like television.


I don't watch much Hulu (5.00 / 1) (#21)
by Militarytracy on Tue Jul 12, 2011 at 10:50:13 PM EST

Josh does though. Because of the toddler lifestyle my daughter leads right now, she doesn't have much computer time and having one out around toddler hands and toddler fingers and juice boxes just doesn't work well :) Netflix works really well though through a game system that you can place in a safer place like your DVR. Sometimes when Josh stays with her he will Q some kids movies that are streaming on Netflix and take his Xbox over there.

I went to see her the other day and her T.V. screen was covered in a strange milky film with hand prints. She wasn't exactly sure what substances they had put together to do that one :) Naomi got ahold of one her lip glosses today and drank it. We assume that since it is okay for putting it on your lips, sucking it out of the skinny tube won't be the worst thing that can happen to you.


: heh, interestingly (5.00 / 1) (#22)
by jeffinalabama on Tue Jul 12, 2011 at 11:08:56 PM EST

colored poop. I remember the eating crayon days.
I don't have any game stuff, a fact my boy sorely lamented today. I had forgotten Netflix can stream through game equipment.

And the content providers... (none / 0) (#25)
by Dadler on Tue Jul 12, 2011 at 11:33:58 PM EST

...are also seeing this as a way to pay writers (and everyone else) less, even though with the increase and soon to be domination of downloaded/streamed movies their distribution costs are reduced to almost nothing.


My kids (none / 0) (#4)
by Ga6thDem on Tue Jul 12, 2011 at 07:17:58 PM EST

use the streaming a lot but the movies just sit unwatched because it seems nobody has time to watch them. I watch Hulu a lot more than Netflix.

CI'm Cancelling - But Can't Get Through (none / 0) (#6)
by Jade Jordan on Tue Jul 12, 2011 at 07:25:15 PM EST

The phone lines are so busy I can't get through to cancel on the day of the increase.

I prefer HBOTOGO AND SHOWTIMETOGO.

Good Luck Netflix.

According to Netflix (none / 0) (#9)
by ding7777 on Tue Jul 12, 2011 at 08:33:55 PM EST

unlimited streaming and unlimited DVDs (1 DVD at a time) will be $15.98 a month ($7.99 + $7.99).

unlimited streaming and unlimited DVDs (2 DVDs at a time)will be $19.98 a month ($7.99 + $11.99).

It looks like they are also offering a Limited Plan

2 hours of streaming per month and 1 DVD at a time (max of 2 per month) for $4.99

I think I'll get the Limited Plan

If they had better streaming stuff (none / 0) (#11)
by Militarytracy on Tue Jul 12, 2011 at 08:40:46 PM EST

I'd stream it. But it is only every once in awhile they have something available streaming that I want. They have put about half their local competition out of business here though. We are on the three movie at a time plan, and we will probably stay on it. It just works for us. And if we have a surgery with Josh pop up and a movie doesn't get sent back in for two weeks in the chaos, I never come home to a $100 in late charges :)

: Just got the mail from them (none / 0) (#27)
by ruffian on Wed Jul 13, 2011 at 06:08:56 AM EST

My current plan -3 DVDs plus streaming- would go up about 3.00 a month. Not as bad as I thought it might be. I could drop the streaming and save about 6 a month from what I pay now. I may go for that. I don't do enough spur of the moment viewing to need the streaming, and as you say, they don't stream what I usually am in the mood for anyway.

if you own netflix stock, (none / 0) (#14)
by cpinva on Tue Jul 12, 2011 at 08:57:59 PM EST

dump it, before it goes down the toilet. they provide a non-essential service, with multiple competing providers available. to do something this foolish, in the midst of a depression level economy is beyond mere stupid, it's suicidal. i'll bet money that a huge chunk of their subscribers decide it's a luxury they can no longer afford.

No cable, so I'm keeping Netflix (none / 0) (#28)
by Coral on Wed Jul 13, 2011 at 08:39:06 AM EST

It's much cheaper than cable.

I like the mix of old and new, TV series, and old HBO series where I can watch 2 or 3 in a sitting.

Might cancel the streaming as I rarely use it.

I do wish HBO would release their shows via iTunes much closer to the release date. I would gladly pay if I could get them earlier than sometimes a year late.

: Same here. (none / 0) (#31)
by Chuck0 on Wed Jul 13, 2011 at 12:57:34 PM EST

I recently bought a WiFi enabled television. I watch a lot of Netflix streaming. I think I'll cancel my DVDs though. My WiFi TV has apps for Blockbuster, VUDU, HULU Plus and Amazon. I can purchase a just released movie from there I want to see something new. I highly recommend a TV with built-in WiFi. I have very basic cable that gives me the local stations. I don't miss having 80-90+ channels at all. I download audio and listen to my favorite MSNBC shows at work the next day. I watch the Daily Show online at lunch. Don't need the high priced cable or satellite at all. Just finished watching 68 episodes of Army Wives on Netflix.