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Thursday, 14 July 2011 08:40

Netflix price increase has people steaming

Written by David Stellmack

Many claiming they will drop the service
It has only been one day since Netflix announced their new plan for division of their DVD rentals and streaming. However, many users are so hot about the huge price increase they have threatened to drop Netflix and vow to look for other ways to get their content to watch.

Netflix claims that due to continued cost increases they were unable to continue the combined business model they had been using; instead, they opted to move to a pricing model that separates the DVD rentals and content streaming. Previously, subscribers would pay for monthly DVD rentals and the streaming was thrown in as bonus, so to speak.

With the new pricing that will become effective in September, customers who want both DVD rentals and streaming will be forced to play $7.99 for DVD rental and $7.99 more if they also want the streaming, for a total of $15.98 per month. This is a 100 percent price increase, and many are complaining that the company is just being greedy. While we expect Netflix to lose some subscribers who will seek other options, the big winners could be those like Redbox and Hulu Plus, and maybe even the local independent video store (that is, if you are still lucky to have one of those around).

The latest from Netflix indicates that the company is still talking tough and seems to have no plans to re-think its new pricing strategy. We will have to wait till the next earnings report to find out how much real damage was done by this decision.

David Stellmack

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+2 #1 tokad 2011-07-14 12:24
IMHO all countries where Netflix is available should be thankful for such a cheap service. Try to find a similar service in Europe for that price...
+3 #2 Warrior24_7 2011-07-14 12:36
When you're as big as Netflix you can start to dictate to people what you want them to do, and if they don't like it... then f*k off!! Something like what Steam tried to do to EA, and EA said...f*k off!! Netflix is now being seen as a threat by the industry and greedy by consumers. If they're not careful they'll see themselves going the way of Blockbuster!
+3 #3 willie 2011-07-14 12:43
"$7.99 for DVD rental and $7.99 more if they also want the streaming, for a total of $15.98 per month. This is a 100 percent price increase,"

its a 60% price increase, and i think the price increase will have people streaming instead of dvd.
+1 #4 gsacks 2011-07-14 19:06
I'll probably cancel Netflix and try another service if for no other reason than to protest such a steep increase. It isn't like I can't turn the service back on if I find that I don't like the alternatives. If fact, for $16 a month, I'm much more likely to just put that towards HuluPlus or Amazon prime and drop the disc rentals all together, then put the difference towards purchasing more blu-ray discs.
+2 #5 Orumus 2011-07-14 20:27
This will push more users who keep it to choose and I think most of them will choose streaming. but if they do then the new bandwidth caps being implemented by ISPs are going to be a very big problem. Supposedly these price increases are due to rising costs, who here thinks those costs are due in large part to the greed of Media companies charging Netflix more. As bandwidth demands increase, the stress on ISPs will increase and so far they have chosen to make the customer pay for upgrades they haven't made yet. I just think this is yet another sign of the way big corps. are trying to push us. Into a system where the customer is great full to pay whatever they ask for whatever quality of service they decide is adequate for the customer.
0 #6 anthonyC 2011-07-29 08:25
With a sixty percent rate growth on the way at Netflix, it is believed that the
leisure company will lose over 2 million consumers. With the gaping sinkhole opened, there is a chance that businesses like Wal-Mart will pounce in to fill the breach. Wal-Mart declared Tues that it will provide its own on-demand HD streaming movies and television via the VUDU program that it purchased less than a year ago. I found this here: Wal-Mart
introduces streaming HD content via VUDU. This outrageous decision of Netflix would definitely increase the subscriptions on its competing companies.

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