Netflix Introduces New Plans and Price Changes

[riffjim4069]

Netflix price hike angers users, some drop plan

Source

Netflix price leads thousands of angry customers to vent online, some to cancel movie service

Some Netflix customers called it a slap in the face. Others a betrayal. Many threatened to drop the movie service.

On Wednesday, many of them vented on Twitter, Facebook and elsewhere, seething over Netflix Inc.'s decision to raise its prices by up to 60 percent for the millions of subscribers who want to rent DVDs by mail and watch movies online.

"I can definitely afford it but I dropped them on principle," said Joe Turick, a technology engineer in Monroe, N.C., who has been with Netflix for about a decade, cancelled his subscription within an hour of learning of Tuesday's price changes and plans to try competitors.

By Wednesday afternoon, more than 40,000 people had responded to a post on Netflix's Facebook page announcing the change, with some saying they would switch to rivals such as Hulu.com's paid service and to Redbox's DVD-rental kiosks.

Outrage bubbled on Twitter, and on Netflix's blog a posting about the new plans had garnered 5,000 comments -- the limit allowed by the site's host, Google Inc.-owned Blogger -- which included many seething customers.

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[TheForce]

Some were wishing for Charlie to capitalize on this Netflix price increase: You'll be happy to read this just in:

Blockbuster Looks To Woo Netflix Customers With DVD Promo
2:42p ET July 14, 2011 (Dow Jones)
Blockbuster Looks To Woo Netflix Customers With DVD Promo

DOW JONES NEWSWIRES

Blockbuster LLC on Thursday unveiled a DVD-rental promotion aimed at swiping customers from Internet-based rival Netflix Inc. (NFLX), taking aim at the online video service two days after Netflix raised its prices.
Blockbuster, the assets of which Dish Network Corp. (DISH) acquired out of bankruptcy, has been slashing its prices recently amid fierce competition from Netflix and vending-machine operator Redbox, a subsidiary of Coinstar Inc. (CSTR).
In a move aimed specifically at the online rental service, Blockbuster is offering a 30-day free trial to Netflix customers who switch to one of its two most popular DVD rental plans. The plans, called Total Access, allow customers to rent one disc at a time for $9.99 a month or two discs at once for $14.99 a month.
Netflix on Tuesday said it is separating its streaming and mail-order DVD subscription plans in the U.S. to better reflect the cost of providing each plan. Netflix customers who want both unlimited streaming and to receive one DVD at a time by mail must subscribe to two plans, each for $7.99. Previously, subscribers paid $9.99 under a single plan for the same services.
Blockbuster said it offers an added edge over Netflix by letting customers choose between mailed DVDs and access to brick-and-mortar stores. Customers must bring a piece of their Netflix DVD envelope to take advantage of the offer.
DISH shares were recently off 2% at $30.97 Thursday amid a broad decline in the market. Netflix shares were down 3.6% to $288.05, trailing the market.

 

[TheForce]

These people jumping to Hulu or other rental services got an F in math I'll bet. Las Vegas will want them with open arms.

 

[Ilya]

So, which Netflix service will you keep (if any)?
Please vote: http://www.satelliteguys.us/chit-chat-club/260642-netflix-poll-streaming-discs-mail.html

 

[BlackHitachi]

These people jumping to Hulu or other rental services got an F in math I'll bet. Las Vegas will want them with open arms.

I think it's more the principle. At least for me then the cost.

 

[TheForce]

Giving up something you like in principle is like what Catholics do for Lent. It's temporary. Downsizing something you felt was a bargain before and then protesting a price increase, even a huge one, but one that is affordable will soon wear out, you put down your placards of protest and resume with the subscription. If it is something you had because it was ridiculously cheap but never used, then this becomes your opportunity to get off your butt and tidy up your unnecessary monthly costs. Protestors are never committed for life, except those rare oddities we call hippies.

 

[Ilya]

When Netflix introduced free streaming to its disk-by-mail subs, I thought it was ingenious! An excellent business decision: a win-win for everyone. Customers got more choices without paying more. And Netflix saved a bundle on discs and postage, and got an opportunity to become the leader in content streaming. Did I start watching more movies with streaming? Not really! Perhaps just for the first couple of weeks. But I significantly reduced the rotation frequency of Blu-rays. So, essentially, I was now paying the disk-by-mail price for a streaming service (which is a great gain for Netflix!), and I would've probably continued doing that, just to have both options available to me.

But unfortunately some decision makers at Netflix (or perhaps some content providers) got blinded by the initial success of this business model. They started increasing the price and decided that they can even charge for each service separately and increase their revenues by doing that. And that, I think, was a grave mistake! It was that bundle of disc-by-mail and streaming that made Netflix so unique and so attractive. No one else could offer that same combo! And now they lost that unique advantage. They gave it up! And upset a lot of loyal customers in the process! Bad business move!!!

 

[Bodo Fenrirsson]

I'm just going with streaming online with Netflix. I'm getting my Blu-ray discs with Blockbuster now. As someone mentioned earlier,they are slower in getting their discs mailed out than Netflix,but they seem to have the latest movies earlier on DVD(& Blu-ray) than Netflix.

 

[riffjim4069]

Terminating our Netflix account at the end of the month.

Sent from my HTC EVO using SatelliteGuys App

 

[pjw318]

Streaming online with netflix... will be canceling the dvd by mail. We get dvd at blockbuster kiosk for now... until that goes under too

 

[riffjim4069]

Nearing end of the billing period...Netflix dropped like a rock today!

 

[yaz96]

Nearing end of the billing period...Netflix dropped like a rock today!

as did every other stock. what's your point?

 

[riffjim4069]

as did every other stock. what's your point?

I meant to say "I" dropped Netflix like a rock today. I wonder how many customers they are going to lose over the 60% price increase?

 

[isaacmorseMI]

I'll probably keep it for now. Netflix still is the best deal for DVD rentals. Don't know if i'm keeping streaming or not yet.

Sent from my iPad 2 using the SatelliteGuys App

 

[yaz96]

I meant to say "I" dropped Netflix like a rock today. I wonder how many customers they are going to lose over the 60% price increase?

Ah, makes sense. I will be dropping my streaming, the bastards. The kids used it for Thomas and Dino Train, but not enough for $8 a month.

 

[B_Kranski]

Well, my billing cycel is in two days and was conteplating what to do and decided to completely cancle the service and switch to blockbuster. I decided this to help blockbuster/dish network out and to basically tell netflix to screw off for raising my price twice in less then a year. Also since there streaming service sucks, no point in even using it since there is hardly ever any newer movies on it. Good luck netflix when you lose 30-60% of you customers because you raised the prices in a economic downturn. Was nice knowing you.

 

[rockymtnhigh]

Well, my billing cycel is in two days and was conteplating what to do and decided to completely cancle the service and switch to blockbuster. I decided this to help blockbuster/dish network out and to basically tell netflix to screw off for raising my price twice in less then a year. Also since there streaming service sucks, no point in even using it since there is hardly ever any newer movies on it. Good luck netflix when you lose 30-60% of you customers because you raised the prices in a economic downturn. Was nice knowing you.

I get more than enough value out of Netflix streaming for $8. Between tv shows and the occasional movie, I use it pretty much every day.

 

[Ilya]

The new price goes into effect on Thursday. So, I went ahead and canceled the streaming and downgraded my plan to 1 at-a-time with Blu-ray.

And since Netflix no longer has the advantage of the free streeming I am actually thinking of dropping it completely and giving BB a try.

It's a free market. Netflix is free to increase the price three times in a row. And the only thing we can do as customers is to vote with our wallets. I've just submitted my vote...

 

[NightRyder]

Canceled Netflix today. Good riddance! With the new TV season ready to start and Amazon Prime adding a ton of new content I have no use for their overpriced service.

 

[riffjim4069]

We may have considered keeping Netflix if their streaming service matched their DVD rentals. It does not. Their streaming service is pretty good...if you want to a Peter Sellers Pink Panther movie or other stuff you can catch on cable, not so much if you're wanting to see a new release. With the upcoming fall TV season, along with football and hockey season, we have more than enough programming to watch until the spring/summer. As Ilya and others have mentioned, Netflix is free to raise their rates and we're free to cancel the service. Next year we'll look at signing up with Blockbuster just because we feel : by Netflix.