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Comments on news posted 2014-05-08 08:21:03: Last month Netflix stated in a letter to investors (pdf) that the company would soon be raising prices for new streaming video customers by a couple bucks, while strongly hinting that a price hike would be coming down the road for existing customers .. ..

page: 1 · 2 · next

Toguro

join:2003-10-23
Chicago, IL

4 recommendations

And of that 50%

Only 1% would actualy bother to cancel.

Majestik
World Traveler
Premium
join:2001-05-11
Tulsa, OK

Re: And of that 50%

I have no problem with it. I own shares and it has done well.
Don't use Netflix as much as I use to though but my niece likes it when she's here,my mom use my account in Virginia,and it's nice to have when you're traveling.
--
The adventure continues...Sanctuary....
elefante72

join:2010-12-03
East Amherst, NY
Reviews:
·Verizon FiOS

1 edit

1 recommendation

Maybe more than that, but Netflix is not immune to the reason for the cost going up : Content Licensing Fees.

The cost to deliver is going down FOR NOW, but once the operators shred NN and force Netflix to peer directly, those transit costs will go up.

So Netflix is the cream in the Oreo and the content owners and operators are the bloodsuckers taking their vig.

The operators complain the Netflix is taking up their precious bandwidth (unfair) that people in the US pay a great premium for, so since we live in liberal times the "bad guys" need to pay their fair share even though operators have margins 80 points or more. You can never have enough jets.

Now Amazon jacked their Prime, Pandora theirs, etc. This is normal when a product reaches a certain mass they need to monetize, so they raise prices. The cost sensitive folks aren't likely worth the acquisition costs, so that is a known factor in any retail environment. In the case of these guys once they become big enough their supplier (content owners) have them over a barrel because their product depends upon the supplier. The same problem exists w/ cable, except the operators are now moving to voice/internet which are now more profitable.

Netflix, et al doesn't have any other choice at this point but are developing original content to create stickiness. That doesn't help the service cost tho.

They will probably go to $9.99 to keep it under $10.

Verizon taps me almost $4 a month for RSN of which I have never watched. Now that's a problem. I am oh so close to dumping down to Select or broadcast...The fam probably won't even notice.
rradina

join:2000-08-08
Chesterfield, MO

1 recommendation

Re: And of that 50%

For me, I probably wouldn't cancel but it's a rather bitter pill to swallow knowing at least part of the increase is because of peering shenanigans. It's almost easier to accept getting shafted for content creator fee increases even though most of the stuff on Netflix has already been fully funded and there's no particular reason to increase fees since it's already pure profit.

battleop

join:2005-09-28
00000
And they know it.

canceller

@37.235.48.x

1 recommendation

I did cancel 1 year ago. Not because of price but because of a shitty content.
rfrooney

join:2006-02-26
Antioch, TN

Re: And of that 50%

Same here.
tabernak

join:2013-08-10
Reviews:
·AT&T U-Verse
·AT&T DSL Service
I'm on the cusp of cancelling their streaming portion as well. Their content is pretty stagnant, but I was recently excited a new (to me) season of Mad Men was available and started watching. The quality was so poor it killed the experience.

I'm tired of them simply blaming the ISPs (At&t for me), they could spend money to make more access points to their content, so it's their fault too. The quality of service between Netflix compared to Hulu/Amazon is astounding in my case.

They increase their prices and I'll cancel my streaming plan and just leave the DVD portion. I'll just funnel the extra $10/month towards Amazon Prime episodes that are available the next day.

cableties
Premium
join:2005-01-27

To not

think there will ever be a price increase is foolish.

Considering that Verizon raised their Fios data plans (dropped previous tiers) by 21% for 2014... how many have complained or cancelled?

But $10/month from $8/month is 25% increase. More than the Fios increase.

$24/yr more isn't unreasonable. But there better be content and reduced lag. Oh wait, is this part of the Comcast-Netflix shakedown???
--
Splat

tshirt
Premium
join:2004-07-11
Snohomish, WA
kudos:5
Reviews:
·Comcast

Re: To not

said by cableties:

Oh wait, is this part of the Comcast-Netflix shakedown???

No, because the increase was already in motion before Comcast AND Netflix began negotiation and signed an agreement.

Also, If estimates are correct the Netflix deal costs less than $0.20 per shared sub per year, certainly far less than $2 per each Netflix sub.
this is about content cost and profitability.

Anybody who actual wants to quit should, but very few who weren't already going too will, and Netflix numbers will be higher than ever in 6 months.

weaseled386

join:2008-04-13
Port Orange, FL
kudos:1
Reviews:
·Bright House
·AT&T U-Verse

I recently cancelled...

... because I didn't think I was using it enough to justify $8.62 per month. I was watching one or two movies every other month, and my daughter had the same cartoons on replay.

Then I found out a similar service is included with my tier of cable service. Sure, it may not include Game of Thrones or Orange is the New Black, but I don't watch either of them anyway.

maartena
Elmo
Premium
join:2002-05-10
Orange, CA
kudos:3

2 recommendations

No problem

$100 to DirecTV.

Or...

$10 to Netflix.

Nope, i'll eat the $2, no worries.
--
"I reject your reality and substitute my own!"
Skippy25

join:2000-09-13
Hazelwood, MO

Re: No problem

Not really an apples to apples comparison, but you ultimately need to decide for yourself if the content/price meets your value/usefulness terms.

jseymour

join:2009-12-11
Waterford, MI

We Won't Be Happy About It

We won't be happy about it, but we'll probably stick with it. We probably watch more Netflix than we do OTA TV.

Jim

Jason Levine
Premium
join:2001-07-13
USA

Re: We Won't Be Happy About It

Same here but with cable TV. My kids primarily use Netflix (and other channels on our Roku). It's a rare moment when I find them watching live TV. (Usually that's them putting on the TV but paying attention to something else and using it for background noise.)
--
-Jason Levine

camper
Premium
join:2010-03-21
Bethel, CT
kudos:1
Reviews:
·Comcast

1 recommendation

Poor survey questions...

"If the price of Netflix’ streaming video service went up by $1 a month, would you cancel your subscription?"

That's one of the questions on the survey. Anyone in market research would throw out that question immediately because the question itself is biased by mentioning "cancel your subscription". The question itself is prompting the person towards canceling.

Better wording would be along the lines of:


If the price of Netflix’ streaming video service went up by $1 a month, would you:

  1 - very likely cancel

  2 - likely cancel

  3 - probably keep the service

  4 - definitely keep the service




Of course, that wording wouldn't produce the headline-grabbing results of the original wording.

RWSI

join:2012-11-27
Albuquerque, NM

Now pay up

With netflix having to pay Comcast for peering the money has to come from somewhere. It's only going to get worse.
smcallah

join:2004-08-05
Home

1 recommendation

Re: Now pay up

The money would come from the now satisfied Comcast users and future Comcast users that would sign up knowing that the service is great.
silbaco
Premium
join:2009-08-03
USA

1 recommendation

By some estimates, the Comcast peering deal looks like it is going to cost between $12-18 million per year. When you subtract the cost they were paying Cogent for the same transit, the price increase is likely extremely low and possibly even.
78036364

join:2014-05-06
USA

1 recommendation

said by RWSI:

With netflix having to pay Comcast for peering the money has to come from somewhere. It's only going to get worse.

Firstly the costs are minimal. Second they are just swapping Cogent with Comcast. Why people still are not getting this is amazing. If you switch from DirecTV to Dish are you paying for BOTH? Nope.
jjeffeory

join:2002-12-04
USA

Re: Now pay up

Comcast customers or Verizon Customers are the ones asking for the content. There is no "transit" across the internet. It's apples to oranges.
Skippy25

join:2000-09-13
Hazelwood, MO
Maybe they can just raise the rates to Comcast and Verizon people.
serge87

join:2009-11-29
Reviews:
·Verizon FiOS

Re: Now pay up

said by Skippy25:

Maybe they can just raise the rates to Comcast and Verizon people.

If ISPs could filter which customers used Netflix and charged them a fee separately from non-Netflix users I would support it
amungus
Premium
join:2004-11-26
America
Reviews:
·Cox HSI
·KCH Cable

I don't care

I only ever signed up for Netflix when they finally offered Streaming, as Vongo (anyone else remember that?) was dead by then, and "magically," Netflix (at the time) had all the Starz content.

I imagine that a lot of other folks also signed up for Netflix for streaming only as well, at $10/mo. at the time.

The way I see it, they've been giving me a break for years, since I didn't do the 1 disc at a time service with it. Here we are, some YEARS later, and they're finally needing to up the price by all of a dollar or two... not at all a big deal to me.

Will likely still keep it around for the occasional entertainment. Hopefully, they can work out some further deals for some newer content while they're at it.
masterbinky

join:2011-01-06
Carlsbad, NM

Could be worse

At least I'm not paying them to show me commercials in the middle of my shows. Yeah, I'm looking at you hulu plus. I would actually pay to see those media companies with voting stake lose money. I care very little about doomsayings that if those media companies go under then all TV is gone forever. That's flagrant BS, in reality if they flop something better will come about that they won't be around to stop. For example Dr. Horrible was made low budget during the '07 writers guild strike and was received better than the majority of shows that get pushed out now. To me that's just empirical evidence that the massive budgets the giant media corps 'have to have to make shows' is flat out untrue (like most reasonable already believe). It becomes believable if they have to have those budgets to control a market, crush competition, and grease some political wheels, but that's not what they are claiming. Don't even start with the 'what about all the other people that need jobs' fallacy either. If two companies of equal size merge, into one large company their total headcount drops after they eliminate redundant positions in the supporting services such as accounting, payroll, HR, etc. It's just a matter of economies of scale. So multiple smaller companies would actually support more jobs especially in the businesses that support such companies (such as a caterers providing lunch at multiple locations vs providing lunch at a single location).
BlueRidgePro4

join:2010-07-21
Paris, VA

What people say in a poll and what they will do are quite different.

Responding that they will cancel is simply saying "don't raise my price".

Not many will cancel.

What did the poll expect? People to say "OK to raise my price, I'll stay whatever you do"?

SpaceJamFan

@68.42.244.x

Already Cancelled

To me the content on Netflix flat out sucks. Once the WWE Network came out (big wrestling fan) I dropped Netflix in a second. Even without the WWE Network no way would I have paid $10 a month for what Netflix offers.
78036364

join:2014-05-06
USA

Re: Already Cancelled

said by SpaceJamFan :

To me the content on Netflix flat out sucks. Once the WWE Network came out (big wrestling fan) I dropped Netflix in a second. Even without the WWE Network no way would I have paid $10 a month for what Netflix offers.

And the extra $2 is going to be used to acquire more content. People complain about wanting more content but don't want to pay for it.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Already Cancelled

We shall see what the extra $2 will get us.

I am guessing it wont be much better content being that it is the content companies that are reluctant to sell their content for streaming being it water downs their content to sell to other closed end systems (Cable/Sat/HBO/Showtime).

intok

join:2012-03-15

Re: Already Cancelled

Netflix knows they need to make more original content, thats probably where this $2 is headed. If they follow the AMC model they could have several very well made and popular shows out that are 100% exclusive content(torrents not withstanding) which will get more customers on board.

Packeteers
Premium
join:2005-06-18
Forest Hills, NY
kudos:1
Reviews:
·Time Warner Cable
agreed - between hulu+ and ota content, i spent very little time trolling netflix for anything to watch beyond House of Cards, so i let my sub expire.
at this point the only thing i would gladly pay extra (instead of pirating) would be hbo go, should it ever become affordable (without a cable tv sub).

•••

TOPDAWG
Premium
join:2005-04-27
Calgary, AB
kudos:3

I'd pay

prices going up suck ass but I'd pay it. Netflix even at 10 is a damn good value.

canceller

@37.235.48.x

Re: I'd pay

Yeah, for watching BS maybe
Acarney

join:2003-01-27
Richland, WA

Improvements...

I would probably stick with it, but I probably would drop the DVD/Bluray plan. I'm curious how many others are in my boat. I get maybe one or two bluray's a month (and sometimes none) but the price still seems "worth it" for having it when ever. I figure they make a lot of profit off people like me. However, bump my price up $2 without a noticeable improvement and I'll probably feel like I need to cut something to "save" that money again. Thus dumping the mail out plan.

What I really want to see is Netflix being more transparent with the content they are adding and when something is coming/how long it'll be there. I know there are some 3rd party sites that break down what is added on which days, but why can't Netflix promote it better? (And the "just added" and "new release" does not cut it... By that list they add like two or three items a month... I know more content is showing up then that!)

I would love to know movie X was coming June 1st or "summer 2014" or something so I had something to look FORWARD to rather then impulse and reaction watching. Guess the studios would hate that, but if Netflix wants to become a focus instead of an impulse or "might as well" service, they need to sells themselves as being worth while a month from now, not just what they currently have.

Also, drives me INSANE that some popular old items don't show up. Can some of Wes Anderson's old movies really be that expensive?? Probably not, when he's releasing a new movie this year (Grand Budapest Hotel, fantastic, go see it) would it maybe make sense that people would go home & want to watch some of his other stuff? Yes! NetFlix needs to move quicker with this stuff and rotate in content from currently hot directors/actors.

I think we're all over the awe and fuzzy feeling of NetFlix being a huge video rental store with the best employee in the world that can pick out something you've never heard of but might like watching. If they want to be premium they need to start acting like it and anticipating what's going to be popular and hot.

(Also, they better not be blowing all their cash on things like The Avengers or Hunger Games, giant blockbusters like that probably are the ones that move bluray's anyway for the 3D/commentary/extras/deleted stuff/etc. Don't fill it with way random obscure crap, but common, some of the best grossing movies... People have seen those, people will buy those...)
amungus
Premium
join:2004-11-26
America
Reviews:
·Cox HSI
·KCH Cable

Re: Improvements...

Haven't had the disc option since they dropped it however long ago. Guess you can keep it for the +$1/mo. or however much, but I simply dropped it and kept streaming only.

The organization is also a huge pet peeve of mine, which they still haven't addressed. Haven't bothered browsing the site in so long because it just hurts. Too much flash, and it's still a mess.
wispalord

join:2007-09-20
Farmington, MO

not till more current content

not worth it I stopped al ready there's nothing there that's not on hulu or crackle and hulu is more current on shows if I want archives of old show I will torrent them once something is 25 years old it public domain there is no more copyright how you think all these sites are full of old shows and movies
masterbinky

join:2011-01-06
Carlsbad, NM

1 recommendation

Re: not till more current content

Which is exactly what media companies were trying to get you to do when they imposed delays on content (only for netflix) and limited the catalog netflix is allowed to offer. They want to offer a larger more current selection, and media companies decide not to let them by outright refusing or setting absurd prices. Too bad it isn't regulated so any delivery system had to pay the same prices.

Netflixuser

@67.183.72.x

I can live without it

I would cancel because I don't "need" video entertainment. Netflix is currently a bargain and my kids wouldn't like if I closed it but in reality its a time waster. I currently pay for cable and leave it unhooked and I only have it because it lowers my comcast internet bill $20 and the cable comes out to be free. Don't get me wrong I do watch netflix in the late evening.
signmastr

join:2004-06-21
Fallbrook, CA

Re: I can live without it

$2 more for the same old " nothing to watch". They'll loose me and mine for sure...

beck
Premium,MVM
join:2002-01-29
On The Road
kudos:1
Reviews:
·Stablehost.com

price and content

I just re-signed up for Netflix. I'm SO disappointed. I knew I wouldn't use it that much since I have a very low cap on my wireless. But I go through all the movies and there just isn't anything I really want to watch. I invited some friends to be on it with me and they have watched a total of 1 movie in 3 weeks. So I guess they don't see anything hot either. I'll probably cancel. Not worth 8 or 10 for nothing to watch.
--
Are YOU just a turkey voting for xmas?
chances14

join:2010-03-03
Michigan

not surprised

most people nowadays want everything for nothing. so it's not surprising that people would cancel over a $2.00 hike rate
DigitalManny

join:2014-01-08
Glendale, CA

Re: not surprised

How long have you been with Netflix? IF you have been with Netflix as long as I have been than you would understand why customers are annoyed about the price hike because there was a lot on Netflix and almost everything did exist through streaming. This type of comment that Netflix customers post shows how bad Netflix is doing now everyone is too cheap.
chances14

join:2010-03-03
Michigan

Re: not surprised

my comment was more directed at society as a whole not just with netlfix. most people don't have a clue at how much money it costs to run a business and the costs of running a business are only going up.

Do people expect netflix's prices to never change?
DigitalManny

join:2014-01-08
Glendale, CA

The only way Netflix customers would they stay if they add more movies & TV

the only way the price hike will keep customers if they add movies and TV Shows in timely manner like Amazon Prime does now instead Netflix Recycles movies that were just removed few days ago or a month ago they even try to cover up moving movies or TV Shows around by giving a new genre to cover the loss of movies or TV Shows. The only customers that do not mind this are new customers they seem to think people who make complains about this are trolls, well being a customer of Netflix over 6 years where DVD and streaming was together we have seen every changes.

Another reason customers are or wanting to leave because they know the $2 hike is for Comcast and Verizon agreement and do not believe Netflix is going to add more movies or TV Shows because of the price hike which I agree with this people.

Let me say also this I have 1 month free DVD/Blu-Ray with Netflix right now and trust me it is like Blockbuster there is almost no Blu-Rays not even a single movie available for rent only a green icon to save it if the DVD is ever available, few years back they were all available not sure why the loss and most of the DVDs are also bootleg bad quality Full Screen that are Region 0 release. This is a sad sign for Netflix all they are worried right now is about 4K seriously how many customers have 4K TVs at home and not worried about getting capped?
JJV
Premium
join:2001-04-25
Seattle, WA

1 recommendation

Netflix thinks they are Comcast

Netflix thinks they are Comcast with all the rate hikes.

Pathfinder
Dazed Confused
Premium
join:2000-03-26
Mount Vernon, NY

Re: Netflix thinks they are Comcast

They haven't raised rates since 2011!
True

join:2013-08-08

they just did $1 like 2 weeks ago.

umm this already happened did't it uped like a buck 2 weeks ago.