And of that 50% Only 1% would actualy bother to cancel.
| 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.
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.
Re: To not
said by cableties: No, because the increase was already in motion before Comcast AND Netflix began negotiation and signed an agreement.
Oh wait, is this part of the Comcast-Netflix shakedown???
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.
No problem $100 to DirecTV.
$10 to Netflix.
Nope, i'll eat the $2, no worries.
"I reject your reality and substitute my own!"
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.
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.
| |said by RWSI: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.
With netflix having to pay Comcast for peering the money has to come from somewhere. It's only going to get worse.
Re: Now pay up
said by Skippy25:If ISPs could filter which customers used Netflix and charged them a fee separately from non-Netflix users I would support it
Maybe they can just raise the rates to Comcast and Verizon people.
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).
Re: Already Cancelled
said by SpaceJamFan :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.
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.
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...)
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.
Netflix thinks they are Comcast Netflix thinks they are Comcast with all the rate hikes.