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Netflix Sorry You're Angry, But Doubts You'll Cancel
Also Announces New Plans For Facebook, But Not in U.S.
While Netflix's recent round of rate hikes up to 60% upset many customers, the company doesn't think most subscribers will cancel. "Some subscribers will cancel Netflix or downgrade their Netflix plans," the company said in a note to investors. "We expect most to stay with us because each of our $7.99 plans is an incredible value. We hate making our subscribers upset with us, but we feel like we provide a fantastic service and we're working hard to further improve the quality and range of our streaming content in (the fourth quarter) and beyond." As we've previously noted, Netflix is raising rates in part due to Hollywood, who fearing the company's growing distribution influence is preparing to jack up licensing rates substantially. After announcing their earnings, Netflix also announced that they'd be bringing video integration to Facebook -- just not in the United States where Netflix says they're concerned about legal uncertainty surrounding video sharing.
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Suprised
@pacbell.net

Suprised

Anon

Too Late

Already Canceled....

PhoenixDown
FIOS is Awesome
Premium Member
join:2003-06-08
Fresh Meadows, NY

PhoenixDown

Premium Member

Re: Too Late

I know a few people who cancelled some or all of the service.

aztecnology
O Rly?
Premium Member
join:2003-02-12
Murrieta, CA

aztecnology

Premium Member

Re: Too Late

Since my netflix pricing for streaming only didn't change, I'm very happy...
Big Dawg 23
join:2002-03-27
Northfield, MN

2 recommendations

Big Dawg 23 to PhoenixDown

Member

to PhoenixDown
People need to direct the Anger where it should.... Movie and TV Studios. Anyone that thinks Netflix did this to raise cash are idiots.
xenophon
join:2007-09-17

1 recommendation

xenophon

Member

Re: Too Late

i plan to stay subscribed to both (still cheaper than cable pay movie channels) but netflix made a mistake pandering to hollywood demands. they are allowing hollywood to alter their strategy.

vpoko
Premium Member
join:2003-07-03
Boston, MA

vpoko

Premium Member

Re: Too Late

What can they do? Studios own the content.
fredsmith
join:2010-10-23
canada

fredsmith to Big Dawg 23

Member

to Big Dawg 23
Perhaps you didn;t notice, but Netflix raised their rates in anticipation that the studios MIGHT increase their take. This was not a done deal nor is it real . . . yet.

While you can be mad at the studios, Netflix has jumped the gun and deserves to be chastised.
gruntlord6
join:2010-06-10
Barrie, ON

gruntlord6

Member

Re: Too Late

said by fredsmith:

Perhaps you didn;t notice, but Netflix raised their rates in anticipation that the studios MIGHT increase their take. This was not a done deal nor is it real . . . yet.

While you can be mad at the studios, Netflix has jumped the gun and deserves to be chastised.

More like WILL, and only for the dvd and streaming options. Streaming only is the same price, and they had very good reasons for raising prices.

mod_wastrel
anonome
join:2008-03-28

mod_wastrel to fredsmith

Member

to fredsmith
They raised the price for subscribing to both DVD and streaming plans because those who rent DVDs and stream were, essentially, getting streaming as an almost free "perk", while the cost of providing that service has gone up and up and up since it was added. Well, that free ride is over; they'll have to pay for it now just like the rest of us [streaming-only subs]... well, assuming they actually want both now.
hackztor2
join:2007-09-03

hackztor2 to fredsmith

Member

to fredsmith
Raising prices before they negotiate a deal seems odd. Now the studios know Netflix has more money available and will negotiate for high prices. In addition, when they delayed 28 days for movies they were supposed to get 50% off on the discs and MORE streaming. How come that changed? If they did not do 28 delay then I could see the price increase.

FLATLINE
join:2007-02-27
Buffalo, NY

FLATLINE to fredsmith

Member

to fredsmith
Cmon! You know damn well as does everyone else the studios are going to raise prices and that's not exactly why Netflix raised theirs. Netflix wants more of the better content to stream. Well...the better content costs more.

Thaler
Premium Member
join:2004-02-02
Los Angeles, CA

Thaler to Big Dawg 23

Premium Member

to Big Dawg 23
said by Big Dawg 23:

People need to direct the Anger where it should.... Movie and TV Studios. Anyone that thinks Netflix did this to raise cash are idiots.

Actually, they did do this to raise cash...for the increased studio fees. Even though the blame rests with these studios, as a consumer I still have to evaluate if Netflix's new pricing plan justifies keeping my subscription. I'd love to give them money simply for fighting the good fight, but my fun money slush fund has been dry as of late.

SLD
Premium Member
join:2002-04-17
San Francisco, CA

SLD

Premium Member

Re: Too Late

The raw fact is that if enough people cancel Netflix due to the impending price increase, the studios will be forced to evaluate if their products are actually as valuable as they claim. The consumer has *all* the power and will determine the market - dont' forget it.

nekkidtruth
YISMM
Premium Member
join:2002-05-20
London, ON
Netgear R7000
Asus RT-N66
Hitron CODA-4582

nekkidtruth

Premium Member

Re: Too Late

This logic is flawed. Boycotting the studios through Netflix would be like refusing to eat apple's cause you want them to stop planting orange trees.

The studios are who consumers should be pointing the finger at. And in most cases, the studios don't want Netflix to be around as it cuts into their cable market. Hence the projected price hike between the studios and Netflix.

SLD
Premium Member
join:2002-04-17
San Francisco, CA

SLD

Premium Member

Re: Too Late

The logic is quite sound. There is no law the forces the studios to do business with Netflix. Netflix is a viable outlet for generating profits to the studios. If they didn't want to do business with Netflix, they wouldn't; but because they profit in licensing content via Netflix, they continue their agreements.

If consumers stopped buying the content via Netflix, then certainly Netflix would be hurt worse than the studios, but the studios would in turn lose a profitable segment of their business. DVD sales and rentals are a very large portion of that profit model.
sunstarr
join:2009-08-01
Grandy, NC

sunstarr

Member

Re: Too Late

I actually read an article about this and it stems mostly from Sony and their contract coming to end shortly with Netflix. Other distribution channels are surfacing and becoming more popular. Since the popularity is increasing (Hulu Plus, Amazon, Google, etc) and more companies are joining in, Netflix has to be able to compete with those larger companies with much more money to work with. They did not anticipate streaming to become so popular and now that it has they want more money to provide the content. If Netflix doesn't pay for the content, the other companies will, and they will definitely pass that charge on to us. I don't like it but I completely see it. Netflix, even with the increases, are still cheaper and better than the other mediums offered currently. Its the studios we need to be the most angry with. I have heard lots of stories about Sony specifically being a greedy company (esp in relation to movies).

Thaler
Premium Member
join:2004-02-02
Los Angeles, CA

Thaler to SLD

Premium Member

to SLD
said by SLD:

The raw fact is that if enough people cancel Netflix due to the impending price increase, the studios will be forced to evaluate if their products are actually as valuable as they claim.

Actually, if Netflix was forced to shutter their online services, then the studios would be absolutely delighted. That way, they can point towards Netflix's "failure" as a precedent to not having online offerings ever again.

SLD
Premium Member
join:2002-04-17
San Francisco, CA

SLD

Premium Member

Re: Too Late

[See my post to nekkidtruth]

Thaler
Premium Member
join:2004-02-02
Los Angeles, CA

Thaler

Premium Member

Re: Too Late

Unfortunately, your assumption is based upon the belief that the studios make logical, rational decisions. These companies have a history of cutting off their nose to spite their face, and trashing future markets to retain focus on the dwindling one. Yes, it would behoove them to actually work with Netflix on the matter...but that doesn't mean it will happen.

SLD
Premium Member
join:2002-04-17
San Francisco, CA

SLD

Premium Member

Re: Too Late

My "assumption" is quite valid, not unfortunate.
Your conjecture is base on opinion. My argument is based on standard business practices, and financial / historical facts.

You are welcome to share your opinions, but please don't stipulate that your opinions are the only valid arguments.

Thaler
Premium Member
join:2004-02-02
Los Angeles, CA

Thaler

Premium Member

Re: Too Late

said by SLD:

My "assumption" is quite valid, not unfortunate.
Your conjecture is base on opinion. My argument is based on standard business practices, and financial / historical facts.

Then I must be watching the wrong entertainment industry then. All their latest moves have been to bring more theoretical dollars to their coffers - irregardless of whether or not that has been proven to historically not work.

Actually, I'm hard strained to come up with any facts or basis to your opinions. I can't think of too many examples where they embraced technological change. Whenever they do make a move "forward", it's very minimal and often driven by forces outside the industry entirely.
said by SLD:

People won't go back to traditional renting if they cancel Netflix which is less expensive and easier to use.

Why not? If traditional renting is the only legal path left to their customers, what other choice is there (other than possibly a mass exodus to piracy)?
MichelR
join:2011-07-03
Trois-Rivieres, QC

MichelR to SLD

Member

to SLD
said by SLD:

The raw fact is that if enough people cancel Netflix due to the impending price increase, the studios will be forced to evaluate if their products are actually as valuable as they claim. The consumer has *all* the power and will determine the market - dont' forget it.

No, they won't. It's not like people will stop watch movie by canceling Netflix. They'll go back to renting, or pay TV or whatever. The studios still get their money, and Netflix goes away - which will make all their dinosaur competitors happy. Basically you'll be paying a lot more and hurting the wrong party.

SLD
Premium Member
join:2002-04-17
San Francisco, CA

SLD

Premium Member

Re: Too Late

People won't go back to traditional renting if they cancel Netflix which is less expensive and easier to use. They might try it for a short period, but true consumers will vote with their dollars where Netflix wins.
And premium cable is such a small segment, it is hardly worth mentioning.

megarock
join:2001-06-28
Fenton, MO

1 recommendation

megarock to PhoenixDown

Member

to PhoenixDown
I cancelled but not because of this - because I don't use the streaming during the summer months. I DID cancel any going to the movies or anything I can that supports Hollywood and it's greed.

That's who we need to be angry with - HOLLYWOOD and the MPAA. Target them.
FastLearner
join:2003-09-14
Arvada, CO

FastLearner

Member

Re: Too Late

This price change made me step back and look at how much I use Netflix and I came to the concision to cancel the service entirely.
Streaming just is not worth $7.99 under its own merit. It fine as a perk to the DVD plan. The streaming content is abysmal.
As for the DVD side I just don't use it as much as I thought. I end up renting more DVDs from Redbox out of convenience.

Six Gun Kid
Premium Member
join:2001-07-02
Huntsville, AL

Six Gun Kid to Suprised

Premium Member

to Suprised
Placed a hold on my account until I can explore some options. For what they are offering thru the "Instant Queue" at the moment, I don't know if the new prices are competitive.

SayNo2Flix
@charter.com

SayNo2Flix to Suprised

Anon

to Suprised
As I did, as my mother, in laws, sister in law, grandmother, and co worker. To see such an increase for a business with record membership and profits in this economy is outrageous and a slap in the face to it's customers.

urdrwho
join:2006-10-10

urdrwho

Member

Re: Too Late

But the Hollywood people need a new Bently, and the woman need their Jimmy Choo $2,500 shoes. You don't expect the elite to wear a pump from anyone other than J Choo do you?

Oh_No
Trogglus normalus
join:2011-05-21
Chicago, IL

Oh_No to Suprised

Member

to Suprised
The DVD only went down in price and the streaming stayed the same. Only those that want both have to pay $6 more.
I only know people that have streaming only so nothing changed for them.
FoilingFool
join:2001-04-26
Painesville, OH

FoilingFool

Member

Re: Too Late

Not true at all. I currently pay 24.99 for 4 at a time with streaming. My rate will go to 34.99 with no changes. And 26.99 if I drop streaming. So, 2.00 increase plus lose streaming!

mod_wastrel
anonome
join:2008-03-28

mod_wastrel

Member

Re: Too Late

You seem to have a lot of built-in "redundancy" what with 4 at a time and streaming. How many people do you have to "keep happy"? (BTW, the DVD-only that most/all have been referring to is the 1 DVD at a time, so not exactly "not true at all".)
firedrakes
join:2009-01-29
Arcadia, FL

firedrakes to Suprised

Member

to Suprised
i dont use it. but them saying to themselves. we think we know what the customer thinks... is stupid. plain and simple

herb77
join:2005-02-23
Fort Myers, FL

herb77 to Suprised

Member

to Suprised
How soon before you sign up again?
etaadmin
join:2002-01-17
united state

etaadmin to Suprised

Member

to Suprised
Same here, I was going to pay more than $18 a month (stream, 1 CD and bluray) when I was paying $10 the month before.

Add the Sony movies fiasco and suddenly netflix is not worth it. I decided to go to HuluPlus for $8/mo.

Screavics
Premium Member
join:2011-06-23
Pearcy, AR

Screavics

Premium Member

It is a good value...

It is a good value... most rentals run you about $5.99 each but the problem is the "plan breakdown" is the hardest thing to find on the Netflix website if you do not have an account or trial already setup. I wish they would be a bit more open about their entire plan listing so people could be more open to choose what they want. Yeah I could probably find it on a 3rd party site, but why should I have to do this? I just want to browse around and pick the plan that is best for me not just the first plan that "works best for others".

That's my 2 cents

•••••••••••••••••

Transmaster
Don't Blame Me I Voted For Bill and Opus
join:2001-06-20
Cheyenne, WY

Transmaster

Member

What else could they do

Netflix is dealing with an industry that for their entire history have made an art out of ripping each other off. The paranoia these people have of anyone getting anything they think should be theirs has. over the last 120 years or so, reached level of that would bring mental health professionals in to the picture if where seen in a typical person on the street. Netflix is being treated just like everyone else who has any dealing with the movie business.

jjoshua
Premium Member
join:2001-06-01
Scotch Plains, NJ

jjoshua

Premium Member

They doubt wrong

I'll be cancelling one of my plans. My monthly spend will go from $10 to $8.

•••

PeteC2
Got Mouse?
MVM
join:2002-01-20
Bristol, CT

PeteC2

MVM

The problem is raising prices before increasing content

I did drop my dvd portion of the subscription...never rent dvds anyways. Really, I have no issue with $7.99 per month...beats the heck out of HBO on cable alone. The one problem that I do have, is that they are "working on" increasing streaming selection, which for me, is "ok", but then I am not a picky subscriber. Many are underwhelmed by what is available currently, and that is the rub! The rate changes should have been announced simultaneously with increased streaming selection. That would have made this a less contentious move. I get that Netflix is probably going to dump the DVD rental arm of the service somewhere down the road.

••••

FreedomBuild
Well done is better than well said
Premium Member
join:2004-10-08
Rockford, IL

FreedomBuild

Premium Member

Would keep from subscribing

More than likely keep me from ever subscribing. Perhaps our entertainment should regress to more productive simpler things. Such as get off the duff and do something outside - camp, fish, ride walk...actually meet your neighbors or truly connecting with family members, network, read books & perhaps get those things done we've put off....I find vegging out alone the river front or ocean is a lot more satisfying than sitting and watching movies frequently.

Support your local businesses and rent a movie on those rare occasions...

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

I'm cancelling the combined plan and switswitching to Redbox.

I'm cancelling the combined plan and switching
to Redbox. They have a kiosk minutes from my house and have as good selection of recent movies as Netflix .

•••

mod_wastrel
anonome
join:2008-03-28

mod_wastrel

Member

They're right.

Yeah, if you really want both DVD and streaming plans, then it'll cost you a bit more than it did (back when you could stream stuff for almost nothing). But it's still the best value out there for what you get, and most people aren't going to cut off their nose to spite their face. When you say "60% higher!" it sounds BIG! ...but that's still only about $6 more per month. If you have broadband and don't care at all about "DVD extras", then streaming-only is just fine (and still the same price as before ).

•••••

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

already cancelled.

I'll stick with redbox.
rick0204
join:2009-05-20
North Bergen, NJ

rick0204

Member

About $2.50 per movie

With the price increase the one at a time Bluray is $2.50 each if you watch one Bluray per week. That is an increase from the old plan which was about $1.50 per Bluray at one per week. Redbox is OK at $1.50 per Bluray but has a very small number of Blurays available. Amazon has HD weekend rentals for $3.00. I will probably cancel the Blurays but there is really no other alternative that is reliable and costs $2.50 or less per Bluray.
lymelizzard
join:2004-02-28
Robbinsville, NC

lymelizzard

Member

already cancelled

already cancelled
br1252
join:2007-04-10
Norwalk, CT

br1252

Member

Three Strikes

Here we go:

1) Raise the rates
2) Cut out titles
3) and now...Down all the time!

Typical actions for a company that grows big and fat!

Want happy customers? Then add all the DVD titles to instant and make sure the damn service is up!

•••

WoofieInPC
Premium Member
join:2009-04-04
Panama City, FL

WoofieInPC

Premium Member

Not enough new and interesting content.

I cancelled just before the price change after about 6 months with them. Not enough new content available to stream for my taste.
cooperaaaron
join:2004-04-10
Joliet, IL

cooperaaaron

Member

Re: Not enough new and interesting content.

Right, I cancelled for the same reasons!

richdelb
Go Hawks Go
Premium Member
join:2003-01-22
Algonquin, IL

richdelb

Premium Member

Re: Not enough new and interesting content.

said by cooperaaaron:

Right, I cancelled for the same reasons!

Yep, same here. The pricing plans (which right now wouldn't affect me) were also a consideration.

hairball45
@rr.com

hairball45

Anon

Netphlix

Who cares. Havn't been to a theater in years. Almost never rent movies, redbox gets the job done if I feel the need.

JasonOD
@comcast.net

JasonOD

Anon

Perfect storm

Content owners pulling content, raising rates, plus ISP's (wireline & wireless) capping = netflix getting blasted out of the streaming business and back to the DVD's by mail age.

amazon, youtube next?

crazyk4952
Premium Member
join:2002-02-04
united state
Ubiquiti EdgeRouter Lite
Ubiquiti UniFi AP-LR
Polycom VVX300

crazyk4952

Premium Member

new price for more streaming content

OK so I have been on the plan with 1 DVD and unlimited streaming and happily paying $10/month. Sometimes the DVD would sit for weeks without being watched. So I will be changing to the $8/month plan in August (since I sure as hell am not paying $16).

Anyway, I have a great idea. I really don't mind paying the $10/month, I think it is a really good price point. What I would like is to keep paying the $10, take away my DVD rental and bring more streaming content!

Netflix spends something like 3X more acquiring physics DVDs than it does licensing streaming content. This really should be the other way around.

fifty nine
join:2002-09-25
Sussex, NJ

fifty nine

Member

It's not cheap

Studios and the film industry can't survive on your $8 per month pittance.

••••••••••••

PToN
Premium Member
join:2001-10-04
Houston, TX

PToN

Premium Member

Why is everyone being a crazy bitch with their period..???

I dont get why everyone is being so hysterical about this... Do you think that this was on Netflix's plan..? Is it their fault that studios are scare of Netflix' success?

This is the only viable way for Netflix to keep running a successful business.. How can they provide new content if the studios are charging 2 arms, 2 legs and 1 eye for contracts...?

People say: "There is Hulu Plus..." I subscribe to both and Netflix wins hands down on content. Hulu Plus is so limited on their content that it becomes frustrating at times..

You need to bitch at studios, not the middle guy...

•••
jaymerkramer
join:2002-12-11
Saint Peters, MO

jaymerkramer

Member

Already gone

Already cancelled, Blockbuster online offered $15 a month for 2 at a time out with Bluray along with unlimited in store swap outs. Streaming was very limited anyway and with my ISP starting bandwith caps it is not worth the headache to stream crappy movies.

Kilroy
MVM
join:2002-11-21
Saint Paul, MN

Kilroy

MVM

NetFlix needs to grab the cash while they can.

NetFlix founded on the idea that you could deliver a DVD by truck faster than by wire. Times have changed and that is no longer true. There are many thing looking to crush their business model, other greedy companies being at the top of the list.

They are being crushed by content providers who have priced themselves out of the range of large consumer acceptance. Then blame piracy on the reason for their losses, rather than their wrong headed pricing models. Content providers need to embrace the idea that physical media is dead. The cost savings for production, printing, shipping and storage could increase total revenues if they contracted with streaming services.

Now ISPs don't want to be relegated to dumb pipes. Sorry, that's what you are, and what we want from you. Since prices have been all you can eat at X rate you're going to have a hard up hill climb to convince your subscribers that you should be able to cap their data limits, especially when the speeds you advertise don't seem to be delivered in the real world. This is really the place where NetFlix needs to lobby, both law makers and public opinion, if they plan on a streaming business model succeeding.

If ISPs succeed in implementing data caps then NetFlix will have to go back to the mail. The problem is that the USPS is having a hard time right now and NetFlix is one of their major benefactors. If NetFlix starts shipping a lot fewer discs then it may hasten the demise of the USPS and returning to that business model may not be an option. The USPS is currently trying to get down to a five day delivery week and is talking about a three day week in five years.

•••
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