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OT: Netflix price increase


Synthoid

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First, if I practiced as much as I spend watching movies over the years, I might be Godzilla. Escapism, though, is too much fun.

 

I hardly use the streaming but it was the motivating factor for me to join this service. I can't see myself spending $15 unless I reorganize my whole home entertainment. I currently spend $160 for internet/phone/TV (hbo,starz.) I am going to investigate some wireless internet so I can have either at home or away, loose HBO and Starz and then maybe the Netflix increase might be a good idea.

 

I wish they had a plan - 1 DVD out and 3 streams a wk for no increase in money.

 

Gee - home internet, TV, phone, smart phone, steaming offerings, satellite radio, internet monthly subscriptions - No wonder there were some great musicians back in the 40s, 50s, and 60s...

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Gee - home internet, TV, phone, smart phone, steaming offerings, satellite radio, internet monthly subscriptions - No wonder there were some great musicians back in the 40s, 50s, and 60s...

 

People had more money back then because they weren't paying for all that stuff.

 

:facepalm:

 

When an eel hits your eye like a big pizza pie, that's a Moray.
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We only have the streaming package at our house. It is great for our son or when we have guests at the house. We do use it often enough to justify the $7.99 per month but for new releases their streaming selection is relatively pathetic.

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My understanding is that netflix is slowly transitioning to all streaming and zero physical media. I just figured this was a way to coerce customers into dropping the DVD plan.
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Hmmm, timely. As many of you know, I've been going through divorce and recently bought my ex out of the house - I move back next week. I'm going to need to trim expenses. One way I was going to do this was to cancel all my movie channels on cable and get Netflix streamed through my PS3. I don't rent dvd's, so I would just be a replacement of what's available on HBO, Starz, Showtime, Encore. I want TrueBlood...other than that, random movies are fine - I'm not picky. I would like HD and was under the impression you could get it through Netflix. Am I wrong? Are there better economical options?

Dan

 

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Maybe it's time to switch to Watch On Demand at Amazon.

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Maybe it's time to switch to Watch On Demand at Amazon.

 

Amazon does seem to be improving and could steal some or all of Netflix' customers if they play their cards right. I think this is a big reason why the outrage is news. Netflix gambled with their regular and new subscriber's love, normally a bad idea but especially when you consider that people 'feel' broke these days.

 

*edited to add: As a customer, I was personally miffed that I found out about this change from a news website before Netflix bothered to send out an email about it. That shouldn't have happened.

 

We'll see, I think Netflix will be ok but I'm betting they will suffer more than they should have due to this not-so-well-executed gamble.

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I don't like the increase either, but I also don't have a TV or cable, so my options are limited. And $16/month for unlimited DVDs and streaming is still a better value than paying $13 to see most movies in the theater.

 

You seem to be misinformed. $16/month will get you DVD's, but to add streaming it will be $24/month.

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I don't like the increase either, but I also don't have a TV or cable, so my options are limited. And $16/month for unlimited DVDs and streaming is still a better value than paying $13 to see most movies in the theater.

 

You seem to be misinformed. $16/month will get you DVD's, but to add streaming it will be $24/month.

 

no, you're misinformed

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You seem to be misinformed. $16/month will get you DVD's, but to add streaming it will be $24/month.

 

Streaming + Unlimited DVDs (1 at a time) = $16

 

Streaming + Unlimited DVDs (2 at a time) = $20

 

Streaming + Unlimited DVDs (3 at a time) = $24

 

Streaming + Unlimited DVDs (4 at a time) = $30

 

etc.

 

 

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My understanding is that netflix is slowly transitioning to all streaming and zero physical media. I just figured this was a way to coerce customers into dropping the DVD plan.

 

Other way around. The DVD plan was the big cash cow. They're losing money hand over fist on the on-demand streaming, because of the bandwidth moreso than the licensing...

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Other way around. The DVD plan was the big cash cow. They're losing money hand over fist on the on-demand streaming, because of the bandwidth moreso than the licensing...

Do you have a source for that? I read that their bandwidth costs are quite low. With DVDs, they have two big expenses... acquiring the content (DVDs), and postage. With streaming, the big expense is acquiring the content (licensing), but the bandwidth is pennies per stream, like 3 to 5 cents per movie. Even if you watched 50 movies a month, that would only cost them about $2 (on an $8 subscription).

Maybe this is the best place for a shameless plug! Our now not-so-new new video at https://youtu.be/3ZRC3b4p4EI is a 40 minute adaptation of T. S. Eliot's "Prufrock" - check it out! And hopefully I'll have something new here this year. ;-)

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What I've heard is happening in that realm is giant ISP's like Comcast are coming back at Netflix and demanding service fees of their own because of the increased bandwidth they're having to serve.

Not sure the ISP would squeeze the content provider as easily as they could squeeze the consumer. It's easier to impose tiered/metered service charges to high bandwidth consumers or flat rate hikes spread across all subscribers.

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What I've heard is happening in that realm is giant ISP's like Comcast are coming back at Netflix and demanding service fees of their own because of the increased bandwidth they're having to serve.

Not sure the ISP would squeeze the content provider as easily as they could squeeze the consumer. .

Here's an article that describes what Comcast is doing.

 

http://arstechnica.com/tech-policy/news/2010/12/comcastlevel3.ars/

 

Comcast did add a premium to what they had been charging Level 3 who provides the "gateway" service for Netflix, and Level 3 agreed to pay to avoid and interruption/slowdown on their service, although they publicly challenged the legitimacy of the higher fee. However, it's still cheap. Quoted from that article:

" 'It's not about the money that we're now being forced to pay Comcast,' [the Level 3 rep] added. It's about the precedent.. and what it might have to pay in the future."

I have not seen whether any of this actually resulted in an additional cost to Netflix. Level 3 may have passed the increase along, or may have absorbed it. (The quote above implies that it was not a huge business-model-impacting increase; and Level 3 may have been contractually obligated to continue to provide the service to Netflix at its agreed upon terms for some length of time, so we don't know if they could have raised Netflix' price even if they wanted to.)

 

At http://www.siliconvalley.com/news/ci_16264945 straight from the horses' mouth, prior to the Comcast flap, Netflix CEO Reed Hastings is quoted as saying "It's less than a nickel to deliver over the Internet compared to $1 to deliver by mail." From another article, I saw the actual postage figure quoted as 78 cents, but that was from 2006... it's probably gone up since then, enough for $1 to be a fair rounded figure for conversational purposes. Another article quoted the nickel as the cost to deliver a movie in HD; many NF movies are delivered in SD, and those cost the company less, the figure I saw quoted for that was 3 cents.

 

An aggressive watcher on the 3-out plan could get 25+ disks in a month for his $16, Netflix could easily lose money on such a user on postage alone. Netflix has always counted on light users balancing out heavy users, and the heavy users are the price they pay to advertise "unlimited" use to attract enough of the market to have plenty of relatively light users to more than offset them.

 

Even if Comcast had added, say, a 20% additional fee (and I doubt it was that large if it "wasn't about the money"), and all movies were delivered in HD, and the cost could be passed onto Netflix (3 big IFs), cost per movie stream would still be <6 cents. A subscriber would still have to stream over 130 movies in a month to come close to being a money loser for NF in delivery costs. Even a big family streaming on multiple devices simultaneously wouldn't do that so easily. Though the no-longer-available option of adding streaming to a DVD plan for $2 could have been more reasonably "maxed out." Still, I'd say "they're losing money hand over fist on the on-demand streaming, because of the bandwidth" seems very unlikely. I would guess streaming is more profitable for them overall than DVDs, and it's no secret that they have long seen streaming as the future direction of the company.

Maybe this is the best place for a shameless plug! Our now not-so-new new video at https://youtu.be/3ZRC3b4p4EI is a 40 minute adaptation of T. S. Eliot's "Prufrock" - check it out! And hopefully I'll have something new here this year. ;-)

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What I've heard is happening in that realm is giant ISP's like Comcast are coming back at Netflix and demanding service fees of their own because of the increased bandwidth they're having to serve.

Not sure the ISP would squeeze the content provider as easily as they could squeeze the consumer. It's easier to impose tiered/metered service charges to high bandwidth consumers or flat rate hikes spread across all subscribers.

 

They tried that in certain test markets. The backlash was immediate and swift - cancellations all over the place.

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10-15 years ago, we had 3 locally owned video rental places in my college town of about 50,000. One of them in particular was staffed with certifiable film nerds who you could count on to recommend an interesting film that you'd never seen before. Then, the Blockbusters and Hollywood Videos moved in, and the local places closed, the cool one morphed a few times and finally shut down about 4 years ago. Last year, Hollywood and both Blockbuster locations in town shut down, citing competition from Netflix. Now Netflix are raising their prices. Meanwhile, what had been a cool little person-to-person, face-to-face social network in my town has completely disappeared. This is supposedly better?

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10-15 years ago, we had 3 locally owned video rental places...Meanwhile, what had been a cool little person-to-person, face-to-face social network in my town has completely disappeared. This is supposedly better?

 

Not better for Anytown, USA. But, I had the same feeling when record stores closed. They could no longer compete with big box retailers and internet companies.

 

As the songwriter penned, "Everything Must Change". Hopefully, new social networks will rise from the ashes in the physical realm.

 

Heaven knows, we don't need more Best Buy, Amazon, Netflix, Facebook, Google+, etc. :laugh:

 

Otherwise, folks are left with 3D, Wi-Fi compatible TVs, Blu-Ray, PCs, portable devices and streamed content on demand, never having to leave their seat or home. :cool:

PD

 

"The greatest thing you'll ever learn, is just to love and be loved in return."--E. Ahbez "Nature Boy"

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Otherwise, folks are left with 3D, Wi-Fi compatible TVs, Blu-Ray, PCs, portable devices and streamed content on demand, never having to leave their seat or home. :cool:

 

Boring. :snax:

When an eel hits your eye like a big pizza pie, that's a Moray.
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Otherwise, folks are left with 3D, Wi-Fi compatible TVs, Blu-Ray, PCs, portable devices and streamed content on demand, never having to leave their seat or home. :cool:

 

Boring. :snax:

I didn't write that it was a good thing. Especially not for artists and musicians.

 

I hope a movement will occur that encourages folks to leave home. Of course, they will still be tethered to some type of device. :laugh::cool:

PD

 

"The greatest thing you'll ever learn, is just to love and be loved in return."--E. Ahbez "Nature Boy"

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Otherwise, folks are left with 3D, Wi-Fi compatible TVs, Blu-Ray, PCs, portable devices and streamed content on demand, never having to leave their seat or home. :cool:

 

Boring. :snax:

I didn't write that it was a good thing. Especially not for artists and musicians.

 

Yes, I realize that. But it is a sad statement about many people today--so much easier to rely on devices instead of getting out there and experiencing life. I need to do more of that myself.

When an eel hits your eye like a big pizza pie, that's a Moray.
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