Good news, everyone! Netflix jacking prices again!

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Chaz
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Good news, everyone! Netflix jacking prices again!

Post by Chaz »

As of Sept 1, streaming and discs will be separate plans, and there's no discount for having both. Basically sounds like the current plan with one disc at a time with bluray access that I'm paying ~$12 for (already higher than I'd like), will be going up to $18 on Sept 1.

This kind of shit is really starting to sour me on Netflix. Looks like I'll be ditching discs altogether.
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Re: Good news, everyone! Netflix jacking prices again!

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Chaz wrote:As of Sept 1, streaming and discs will be separate plans, and there's no discount for having both. Basically sounds like the current plan with one disc at a time with bluray access that I'm paying ~$12 for (already higher than I'd like), will be going up to $18 on Sept 1.

This kind of shit is really starting to sour me on Netflix. Looks like I'll be ditching discs altogether.
I think I will be ditching discs too. We only get one or two a month. Can do that on redbox easy.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Arcanis »

Our roommates recently got streaming and i've been disappointed in the lack of content on it, in addition to how much is disk only. Though I really doubt I would ever go with a disk plan with them, as I wouldn't be able to decide what i'll be in the mood to watch far enough in advance.
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Re: Good news, everyone! Netflix jacking prices again!

Post by McBa1n »

ah dang. I like the 1 disc out at a time dealy with streaming, It's perfect and at a great price. The newer plan is not good enough to justify the cost, especially since they don't deliver quite a lot on dvds until after they've been on pay per view for a period. The streaming is great, I don't know if I'll give that up.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Smoove_B »

Suddenly Amazon Prime instant streaming just gained value.
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Re: Good news, everyone! Netflix jacking prices again!

Post by msduncan »

Canceling netflix
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Re: Good news, everyone! Netflix jacking prices again!

Post by Archinerd »

msduncan wrote:Canceling netflix
Thinking about it.
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Re: Good news, everyone! Netflix jacking prices again!

Post by paulbaxter »

I'm not sure why this would be terribly upsetting. If some other provider gets you what you want at a better price it's quite easy to drop netflix. I never imagined that they would just continuously offer increasing services without ever raising their prices.

In my house we love the fact that we don't have any broadcast tv, but that we can watch shows or films that have been recommended on our own schedule. And for all this it's way cheaper than cable plans. We'll probably switch to the 2 at home+streaming, since that's the same price as what we've been paying, and we have tended to not watch our disks very quickly when we get them.
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Re: Good news, everyone! Netflix jacking prices again!

Post by dedewhale »

my plan is going from 9.99 to 15.99 a month, that is ridiculous. I almost never use steaming because of the lack of quality. I may just cancel netflix and if I want first run movies go with pay per view.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Chaz »

The annoyance is what happens any time prices increase. In order to get the same product I currently have, I have to pay 33% more per month. I don't get 33% more service or 33% better service, but they'd be getting 33% more money. This means that, yes, everyone get to re-assess the product's value to them. I don't feel that having disc rentals is worth the premium, so I'll be dropping to streaming-only. You've obviously decided that you're willing to accept less services for the same amount of money, so you're adjusting your plan options accordingly.

The big question, for me at least, is whether it's worth it to have Netflix at all. I'll definitely be looking into the Amazon streaming options. I already pay for Prime as a service by itself, and if the streaming service I get with that is comparable to Netflix, I may just drop Netflix completely.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Ralph-Wiggum »

This likely is why the prices are going up:
That spells trouble for Netflix's streaming content costs.

"Netflix has another year or two on most of these contracts, and then the game completely changes," says Michael Pachter, analyst at Wedbush Securities.

Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.

When streaming video was new, Netflix was able to secure contracts with the likes of Warner Bros. Studios and MTV to license big TV and film catalogues for about $5 million to $10 million per year. This time around, Pachter says, those costs could increase more than tenfold.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Smoove_B »

When it first started, the Amazon Prime streaming options were pretty bleak in comparison. I still don't think they close to catching up (in terms of the number of things offered), but there is a lot of overlap between the two. For something you're given as part of a Prime membership, it's definitely worth comparing to the current Netflix streaming options with respect to what you watch. Right now Netflix is awesome for children's movies and TV programs, so I'm sort of held hostage. But there's no way I'm paying $16 a month to get 1 DVD and a streaming option -- I would have to turn around 2+ DVDs a week to make that worth it and I'm lucky if I get through one every 14 days.
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Re: Good news, everyone! Netflix jacking prices again!

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And with that, you can hear the sound of the studios sharpening their axes, getting ready to slaughter the goose that laid the golden eggs.
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Re: Good news, everyone! Netflix jacking prices again!

Post by dbt1949 »

I don't think too highly of their streaming collection so if I had to drop that I would.
I haven't received any notice about this yet tho.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Chaz »

Agreed, if studios start pulling support from Netflix streaming, it's going to get ugly. I'm sure the studios will start trying to create streaming portals of their own content. The problem is that Netflix's success was due to convenience. All this content available for one price in one location, with ways to view it on a multitude of devices. Fragmenting that so you need to pay one fee and use one set of apps for Universal, another fee and app for Fox (which may not be available on your device of choice, etc will go a long way toward killing the fledgling streaming video market.
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Re: Good news, everyone! Netflix jacking prices again!

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Isgrimnur wrote:And with that, you can hear the sound of the studios sharpening their axes, getting ready to slaughter the goose that laid the golden eggs.
Whose golden egg? How much do the studios make on this? How much does Netflix make?
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Re: Good news, everyone! Netflix jacking prices again!

Post by noxiousdog »

440 comments on that blog now and of the first 200 only 2 aren't negative.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Smoove_B »

LordMortis wrote:Whose golden egg? How much do the studios make on this? How much does Netflix make?
The golden egg that is allowing movie and TV show producers to get content to the end user through a single (or small) conduit. But now that they all see how much we all like Netflix Streaming, they don't want deal with the Middleman anymore. See: HBOGo and the current battle between STEAM and EA Games Online (a.k.a. Origins).

In an effort to try and capture more money, the market is going to fracture and your choices for diverse streaming content are going to diminish severely.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Davidbld »

Just got the notice, hurray, a 50 percent increase! I rarely use there streaming so Im thinking about going Disc only and using Hulu and other sites for streaming. Its still not to bad of a value for what you get, but still its kind of a rediculous price jump in my opinion.

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Re: Good news, everyone! Netflix jacking prices again!

Post by LordMortis »

Smoove_B wrote:
LordMortis wrote:Whose golden egg? How much do the studios make on this? How much does Netflix make?
The golden egg that is allowing movie and TV show producers to get content to the end user through a single (or small) conduit. But now that they all see how much we all like Netflix Streaming, they don't want deal with the Middleman anymore. See: HBOGo and the current battle between STEAM and EA Games Online (a.k.a. Origins).

In an effort to try and capture more money, the market is going to fracture and your choices for diverse streaming content are going to diminish severely.
But the question is still, how much money is being made now and by whom. Obviously if 10 million people are paying $10 a month, there's 100 million a month being made but who is seeing that money? If I'm netflix and I'm not getting the lion's share of that 100 million a month after all of these years and I've established the model and driven my competition under then it's time to start making my goose show off her fertility or kill her as a failure trying.
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Re: Good news, everyone! Netflix jacking prices again!

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I just went to my preferences and changed it to (2) dvd's (unlimited amount)only and saved $4 a month.
The good news is it's going to piss off my stepson.
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Re: Good news, everyone! Netflix jacking prices again!

Post by noxiousdog »

LordMortis wrote:
But the question is still, how much money is being made now and by whom. Obviously if 10 million people are paying $10 a month, there's 100 million a month being made but who is seeing that money? If I'm netflix and I'm not getting the lion's share of that 100 million a month after all of these years and I've established the model and driven my competition under then it's time to start making my goose show off her fertility or kill her as a failure trying.

I looked up netflix's financials and they are doing fantastic. Very high ROE.
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Re: Good news, everyone! Netflix jacking prices again!

Post by funnygirl »

Archinerd wrote:
msduncan wrote:Canceling netflix
Thinking about it.
Ditto

But since I go to movies fairly frequently, I tend to use Netflix to watch HBO, Showtime and AMC series'. I rarely watch the streaming unless I am completely bored and have nothing else to watch. Thinking maybe I'll switch to the lowest priced DVD option and fill in with Redbox.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Daehawk »

I've cancelled before. I get disks and seem to keep them forever. We get a LOT more use out of Netflix on my Xbox 360. The wife loves just streaming movies off of it.
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Post by LawBeefaroni »

Same. Haven't gotten a disc in over 2 years. Streaming gets regular use. I'll just dump the disc portion.
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Re: Good news, everyone! Netflix jacking prices again!

Post by LordMortis »

noxiousdog wrote:I looked up netflix's financials and they are doing fantastic. Very high ROE.
High enough to sustain this?
Ralph-Wiggum wrote:This likely is why the prices are going up:
That spells trouble for Netflix's streaming content costs.

"Netflix has another year or two on most of these contracts, and then the game completely changes," says Michael Pachter, analyst at Wedbush Securities.

Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.

When streaming video was new, Netflix was able to secure contracts with the likes of Warner Bros. Studios and MTV to license big TV and film catalogues for about $5 million to $10 million per year. This time around, Pachter says, those costs could increase more than tenfold.

I'm not too clear on things but

http://files.shareholder.com/downloads/ ... olders.pdf" target="_blank

makes it sound like they net about $60 million per quarter
Our consolidated net income of $60.2 million and diluted EPS of $1.11 were at the high end of our guidance range due to the earnings outperformance in the U.S discussed earlier. As we’ll discuss later in the letter, our international loss in Canada was right in-line with our guidance, with lower costs offsetting slightly lower-than-anticipated subscriber revenue.
Already not a lot for what they provide IMO but now they have to come up with another $1.7 billion out of the $240 million a year they are making.

Now should production companies scream for that much money? If I were making $300 million dollar movies, I'd probably start wanting more too.

Of course, I just pay for basic cable and I'm screaming bloody murder that cable and Internet are up to $67 a month for me and I'm thinking about canceling. And I compare $7 a month streaming to $30 a month for basic cable and I'm thinking streaming is a huge discount for media way more current than what I'm generally getting. So what do I know?
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Re: Good news, everyone! Netflix jacking prices again!

Post by tjg_marantz »

Lower than expected in canada. No shit. Pathetic and old selection.

I'd love to give them my money but I can't justify it.
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Re: Good news, everyone! Netflix jacking prices again!

Post by naednek »

So how much is 3 discs at a time unlimited will cost? Don't really care about streaming. But If it hits $25 I'm definetely out
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Re: Good news, everyone! Netflix jacking prices again!

Post by Isgrimnur »

3 DVDs alone will cost $15.99 a month. 3 DVDs with streaming will be $23.98 a month.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Kraken »

# The price of your Unlimited Streaming + 3 DVDs out at-a-time (Unlimited) plan will change to $23.98 (plus any applicable tax) a month starting with your next billing period on or after Sep 01, 2011.
#
You are currently in the Unlimited Streaming + 3 DVDs out at-a-time (Unlimited) plan with unlimited time to watch instantly.
# Your current period price is $19.99 plus any applicable tax.
Hmmm. Apparently there is no DVD-only option for 3-at-a-time. Looks like either I have to pay an additional $4 to keep our existing plan or downgrade to 2 disks + streaming for the same price. Or maybe drop to 2 disks with no streaming to save $8.

My wife has been streaming movies to her computer lately, but I never use that feature at all.

(edit) Scratch that; I found more plans hidden under a link. 3 disks with no streaming is just $15.99, so it looks like we're in for a price cut. Whee!
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Re: Good news, everyone! Netflix jacking prices again!

Post by naednek »

nevermind. Just downgraded to 3 dvds at a time with bluray no streaming for $19. Don't stream much so I just saved $5
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Re: Good news, everyone! Netflix jacking prices again!

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Kraken wrote:
# The price of your Unlimited Streaming + 3 DVDs out at-a-time (Unlimited) plan will change to $23.98 (plus any applicable tax) a month starting with your next billing period on or after Sep 01, 2011.
#
You are currently in the Unlimited Streaming + 3 DVDs out at-a-time (Unlimited) plan with unlimited time to watch instantly.
# Your current period price is $19.99 plus any applicable tax.
Hmmm. Apparently there is no DVD-only option for 3-at-a-time. Looks like either I have to pay an additional $4 to keep our existing plan or downgrade to 2 disks + streaming for the same price. Or maybe drop to 2 disks with no streaming to save $8.

My wife has been streaming movies to her computer lately, but I never use that feature at all.

(edit) Scratch that; I found more plans hidden under a link. 3 disks with no streaming is just $15.99, so it looks like we're in for a price cut. Whee!

yes there is. Just go to your account and hit view more options
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Re: Good news, everyone! Netflix jacking prices again!

Post by Isgrimnur »

Unlimited DVDs (no streaming)
1 DVD out at-a-time$7.99 a month
2 DVDs out at-a-time$11.99 a month
3 DVDs out at-a-time$15.99 a month
4 DVDs out at-a-time$21.99 a month
5 DVDs out at-a-time $27.99 a month
6 DVDs out at-a-time$32.99 a month
7 DVDs out at-a-time$37.99 a month
8 DVDs out at-a-time$43.99 a month
Last edited by Isgrimnur on Tue Jul 12, 2011 3:46 pm, edited 1 time in total.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Daehawk »

Looks like they are going to shoot themselves in the foot. They are loading bullets now.

The movie industry seems to try everything it can to kill itself. Prices are way overboard at the theater as is not to mention the lower quality in movies.
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Re: Good news, everyone! Netflix jacking prices again!

Post by LawBeefaroni »

LordMortis wrote:
noxiousdog wrote:I looked up netflix's financials and they are doing fantastic. Very high ROE.
High enough to sustain this?
Ralph-Wiggum wrote:This likely is why the prices are going up:
That spells trouble for Netflix's streaming content costs.

"Netflix has another year or two on most of these contracts, and then the game completely changes," says Michael Pachter, analyst at Wedbush Securities.

Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.

When streaming video was new, Netflix was able to secure contracts with the likes of Warner Bros. Studios and MTV to license big TV and film catalogues for about $5 million to $10 million per year. This time around, Pachter says, those costs could increase more than tenfold.

I'm not too clear on things but

http://files.shareholder.com/downloads/ ... olders.pdf" target="_blank

makes it sound like they net about $60 million per quarter
Our consolidated net income of $60.2 million and diluted EPS of $1.11 were at the high end of our guidance range due to the earnings outperformance in the U.S discussed earlier. As we’ll discuss later in the letter, our international loss in Canada was right in-line with our guidance, with lower costs offsetting slightly lower-than-anticipated subscriber revenue.
Already not a lot for what they provide IMO but now they have to come up with another $1.7 billion out of the $240 million a year they are making.

Now should production companies scream for that much money? If I were making $300 million dollar movies, I'd probably start wanting more too.

Of course, I just pay for basic cable and I'm screaming bloody murder that cable and Internet are up to $67 a month for me and I'm thinking about canceling. And I compare $7 a month streaming to $30 a month for basic cable and I'm thinking streaming is a huge discount for media way more current than what I'm generally getting. So what do I know?


Netflix had revenues of $718M the most recent quarter, up 45% YOY.

I don't know if/how they can absorb it, but costs don't come out of net income, they come out of revs. And Netflix will probably be over $2.8B in revs.

I'm sure that the new pricing is meant to prepare for any increases in licensing.



Here's what they said in their latest annual report:
Our core strategy is to grow our streaming subscription business within the United States and globally. We are continuously improving the customer experience, with a focus on expanding our streaming content, enhancing our user interfaces and extending our streaming service to even more Internet-connected devices, while staying within the parameters of our operating margin targets.

By continuously improving the customer experience, we believe we drive additional subscriber growth in the following ways:

• Additional subscriber growth enables us to obtain more content, which in turn drives more subscriber growth.
• Additional subscriber growth leads to greater word-of-mouth promotion of our service, which in turn leads to more subscriber growth at an increasingly cost-effective marketing spend.
• Additional subscriber growth enables us to invest in further improvements to our service offering, which in turn leads to more subscriber growth.


Our business has and continues to evolve rapidly. In 2010, we passed a significant milestone with the majority of our subscribers viewing more of their TV shows and movies via streaming than by DVD. Going forward, we expect we will be primarily a global streaming business, with the added feature of DVDs-by-mail in the U.S. We believe delivery of entertainment video over the Internet will be a very large global market opportunity, and that our focus on one segment of that market—consumer-paid, commercial-free streaming subscription of TV shows and movies—will enable us to continue to grow rapidly and profitably.

And in Risk Factors:
The increasingly long-term and fixed-cost nature of our content acquisition licenses may adversely affect our financial condition and future financial results.

In connection with obtaining content, particularly for streaming content, we typically enter into multi-year, fixed-fee licenses with studios and other distributors. As of December 31, 2010, we had over $1.2 billion in such contractual commitments covering payments due over the next several years. Furthermore, we plan on increasing the level of committed content licensing in anticipation of our service and subscriber base continuing to grow. To the extent subscriber and/or revenue growth do not meet our expectations, our liquidity and results of operations could be adversely affected as a result of these content licensing commitments and our flexibility in planning for, or reacting to changes in our business and the market segments in which we operate could be limited.
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Re: Good news, everyone! Netflix jacking prices again!

Post by tgb »

I rarely use their streaming service, and tlr never does, so switching to DVD only is no biggie, and it means our fee is going down. Fine by me.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Odin »

Boy, for the amount of crap I took in the other Netflix thread when I had the temerity to complain that the selection of content on Netflix Streaming wasn't what I wanted, there sure are a lot of people in this one who seem to agree with me.

Now I have to decide whether the amount of streaming the kids use (almost but not exclusively Futurama episodes) is worth the enormous price hike.
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Re: Good news, everyone! Netflix jacking prices again!

Post by Carpet_pissr »

I have Blockbuster for my PS3 game rentals, and Netflix 1 DVD out + streaming for movies. Since I tend to sit on both movies and games that are sent to me in the mail, I feel guilty for still subscribing to both. This makes my decision a little easier (not to mention BB does not charge extra for BluRay) I think I am paying something crazy like $6 a month for BB...now how much longer they will be around...unclear.
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Re: Good news, everyone! Netflix jacking prices again!

Post by pr0ner »

How are these price increases enormous?
Hodor.
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hitbyambulance
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Re: Good news, everyone! Netflix jacking prices again!

Post by hitbyambulance »

or if you live by a decent-sized library, you can check out DVDs for free
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