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Author Topic: Netflix splitting DVD and Streaming fees (now splitting into two entities!!!)  (Read 5580 times)
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leo8877
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« on: July 12, 2011, 06:08:50 PM »

http://www.businessinsider.com/netflix-is-raising-its-monthly-rates-again-2011-7

Starting Sept 1, all subs will have to choose a DVD plan AND a streaming plan (if they want), they will no longer be combined.

Sad face.

EDIT:  Link from Netflix directly:

http://blog.netflix.com/2011/07/netflix-introduces-new-plans-and.html
« Last Edit: September 19, 2011, 04:57:57 AM by leo8877 » Logged
Chaz
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« Reply #1 on: July 12, 2011, 06:13:28 PM »

The net result of this will be a lower monthly cost to me (because I'll be ditching disc rentals), and higher amounts of piracy (to get what cannot be streamed). 

The monthly cost of the one at a time + bluray plan I'm on will be going up by $6/month.  No thanks.
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« Reply #2 on: July 12, 2011, 06:16:03 PM »

I was already debating whether or not to cancel the DVD rentals, guess this settles it.  Three Redbox kiosks within walking distance helps.
« Last Edit: July 12, 2011, 06:42:05 PM by Laner » Logged
Crawley
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« Reply #3 on: July 12, 2011, 06:17:42 PM »

Ditching the DVDs as well. Its nice to have the 1 DVD available for movies not on the streaming service but I've let those discs sit around for weeks before watching.
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« Reply #4 on: July 12, 2011, 06:22:08 PM »

Looks like I'll be paying 5 bucks more per month for streaming w/ 2 discs. They should drop the blu ray surcharge if they do this.  I'll just make sure to return my movies a lot more often than I currently do to make up for the higher cost.
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PR_GMR
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« Reply #5 on: July 12, 2011, 06:25:48 PM »

Uncool. I currently pay $12.67 a month for the 1DVD/Unlimited Streaming plan w/ BluRay option. So after Sept 1, it'll be (for me) around 20 bucks for the exact plan. Gonna have to think about this one. Redbox is an option... but I really, really do prefer to get that DVD delivered at home.
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gellar
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« Reply #6 on: July 12, 2011, 06:26:28 PM »

I already ditched the physical discs like 6+ months ago.  Streaming + OnDemand + iTunes are pretty much all I need.
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Harkonis
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« Reply #7 on: July 12, 2011, 06:31:16 PM »

Quote from: gellar on July 12, 2011, 06:26:28 PM

I already ditched the physical discs like 6+ months ago.  Streaming + OnDemand + iTunes are pretty much all I need.

same, we never had the disk plan in the first place though. 
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Chaz
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« Reply #8 on: July 12, 2011, 06:38:04 PM »

Yeah, if they'd softened the blow by removing the bluray surcharge, I wouldn't be so annoyed.  Charging for discs separately and then still leveraging the silly bluray bonus fee on top of that is just stupid.
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Jumangi
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« Reply #9 on: July 12, 2011, 07:09:32 PM »

Netflix wants people to drop their DVD/Bluray plans. The mailing costs, buying discs, and running the distribution centers eats up allot of their money. Plus when the next round of licsensing deals starts to come around they will cost them allot more.
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gellar
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« Reply #10 on: July 12, 2011, 07:29:57 PM »

Quote from: Jumangi on July 12, 2011, 07:09:32 PM

Netflix wants people to drop their DVD/Bluray plans. The mailing costs, buying discs, and running the distribution centers eats up allot of their money. Plus when the next round of licsensing deals starts to come around they will cost them allot more.

I sincerely doubt that.  That distribution has proven to be profitable over the years (and actually only gotten more profitable) and is their competitive differentiator.  Their streaming content is very similar to Amazons.  Without the physical disc model, Netflix would only be able to compete on price/platform, neither of which have high barriers to entry.
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Nth Power
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« Reply #11 on: July 12, 2011, 08:02:33 PM »

I'll probably be dropping the discs from my plan.  I mostly watch over streaming anyways, but it was nice being able to get the disc when it's not being streamed.
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Azhag
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« Reply #12 on: July 12, 2011, 08:12:37 PM »

With my dvr I might consider dropping discs now... not real pleased about a $5 increase. Sure, grand scheme it's not huge, but I don't see how they can justify that kind of gouging.
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« Reply #13 on: July 12, 2011, 08:24:59 PM »

Quote from: Azhag on July 12, 2011, 08:12:37 PM

With my dvr I might consider dropping discs now... not real pleased about a $5 increase. Sure, grand scheme it's not huge, but I don't see how they can justify that kind of gouging.

Their current streaming deals with all the major studios are about to come to an end, and what once cost them $10mil for rights to a studios work is estimated to soon cost them over $1 Billion per studio, so they had to raise prices. No way around it.
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« Reply #14 on: July 12, 2011, 08:30:31 PM »

Quote from: PR_GMR on July 12, 2011, 06:25:48 PM

Uncool. I currently pay $12.67 a month for the 1DVD/Unlimited Streaming plan w/ BluRay option. So after Sept 1, it'll be (for me) around 20 bucks for the exact plan. Gonna have to think about this one. Redbox is an option... but I really, really do prefer to get that DVD delivered at home.

How much is a Redbox rental?  It seems like you could evaporate your 'savings' pretty quickly renting stuff on demand or from a store/machine...
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« Reply #15 on: July 12, 2011, 08:34:44 PM »

Quote from: kratz on July 12, 2011, 08:30:31 PM

How much is a Redbox rental?  It seems like you could evaporate your 'savings' pretty quickly renting stuff on demand or from a store/machine...

Don't know if the price is nation-wide, but around me

DVD = $1/day
Bluray = $1.50/day
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naednek
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« Reply #16 on: July 12, 2011, 08:36:44 PM »

I dropped the streaming version.  Lack of new movies/shows kills it.  Until they start offering more of that I could care less about streaming.

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farley2k
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« Reply #17 on: July 12, 2011, 08:42:02 PM »

Quote from: Crawley on July 12, 2011, 06:17:42 PM

Ditching the DVDs as well. Its nice to have the 1 DVD available for movies not on the streaming service but I've let those discs sit around for weeks before watching.

+1

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« Reply #18 on: July 12, 2011, 08:47:11 PM »

Even with the combined price (we have 2 DVDs at a time), it's still a lot less than cable or satellite would be, and my wife is never lacking for something to watch.  When she runs out of things she's interested in watching, we'll reconsider; till then, I guess I don't mind paying the bill.

I work for one of the content delivery networks which provides the streaming video for Netflix.  Netflix alone makes up a large percentage of our total traffic every day, and keeps growing.  Honestly, I'm surprised prices haven't gone up sooner.
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soulbringer
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« Reply #19 on: July 12, 2011, 09:35:25 PM »

Im gonna drop streaming.  With this increase and AT&T bandwidth cap that I come perilously close to now with the streaming I currently do, If I dropped the discs and went streaming only, not only would I not get the new stuff but I would be paying more for my DSL. 
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Soulchilde
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« Reply #20 on: July 12, 2011, 11:55:27 PM »

Thinking about dropping the streaming.  if they offer some of the newer stuff I might keep it.  Still undecided
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Chaz
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« Reply #21 on: July 13, 2011, 12:04:17 AM »

I like documentaries and TV shows, so I've got plenty to watch on streaming.  With a one at a time plan, at absolute best, I can get through two discs a week.  Streaming is a much better value proposition than having discs.
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« Reply #22 on: July 13, 2011, 12:18:08 AM »

Quote from: farley2k on July 12, 2011, 08:42:02 PM

Quote from: Crawley on July 12, 2011, 06:17:42 PM

Ditching the DVDs as well. Its nice to have the 1 DVD available for movies not on the streaming service but I've let those discs sit around for weeks before watching.

+1



+2

Quote from: Shinjin on July 12, 2011, 08:34:44 PM

Quote from: kratz on July 12, 2011, 08:30:31 PM

How much is a Redbox rental?  It seems like you could evaporate your 'savings' pretty quickly renting stuff on demand or from a store/machine...

Don't know if the price is nation-wide, but around me

DVD = $1/day
Bluray = $1.50/day

Same here in Chicago.  And there's a redbox every 12 feet it seems.  My brother is addicted to them.  Reserves movies on their web site and everything. 
« Last Edit: July 13, 2011, 12:20:21 AM by hepcat » Logged

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« Reply #23 on: July 13, 2011, 01:08:52 AM »

Not pleased that my disc plan will be increasing in price, but considering it costs about the same price today as it did 10 years ago, I'm fine with a small increase. 

I'd go full streaming but there are so many movies that never make it to Instant Watch, let alone the massive delay for even crappy movies to move there, that I don't see my DVD/Blu-ray option going away any time soon.
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« Reply #24 on: July 13, 2011, 01:25:16 AM »

I was grumpy about the blu-ray surcharge, but this new one is enough to push me over the edge and cancel.  It really is their loss, too, in my case.  I'm such a low volume user for both discs and streaming that they're getting my $12/month without much cost on their side.  I like having access to the service whenever I do choose to use it, like a utility, but not at $18/month.
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« Reply #25 on: July 13, 2011, 01:42:37 AM »

I'll probably drop streaming due to the lack of new movies. I may cancel it all and use the local rental boxes but not enthused about that option. I'd love for on-demand to be cheaper but at $5 a movie then Netflix is the better deal. I really miss my local video stores.

Often thought now would be the time for the local mom and pop video store to make a come back. All the huge corps are going out of business and there is a demand for this service from a lot who have no internet access (poor and many seniors).

A family rented a local Movie gallery after it closed and renamed it Family Video. It stays very busy but it's a bit out of my way.
« Last Edit: July 13, 2011, 01:46:56 AM by Lassr » Logged

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« Reply #26 on: July 13, 2011, 02:12:40 AM »

I'll probably cancel.  Your loss, Netflix.

1.  It was $7.99 when I started less than a year ago.  That's an absurd increase, not to mention I have a Blu-Ray and I don't want to pay another $2 for Blu-Ray disks.  This seems even more idiotic given that we have to wait 30 days for most new DVD releases.  So double the price with worse service in about 8 months...the very principle of the thing makes me want to cancel.
 
2.  It's most definitely not worth it for the streaming because their selection is pretty damn mediocre.  Streaming on my IPhone was pretty neat when I was stuck somewhere, but other than that it's just not all that useful.

3.  It might be worth it for the mail DVDs, but with Redbox so pervasive around here, it makes sense to look at renting from them for a buck or (Blu-Ray) a buck and a half.  I hate having to return movies, but that might be the end result.

4.  For that price, I can also rent a bunch of movies from Dish and/or get HBO or Showtime.  Though I probably won't. 
« Last Edit: July 13, 2011, 02:16:11 AM by Blackadar » Logged

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« Reply #27 on: July 13, 2011, 03:23:56 AM »

Hey Netflix.... finger  Two price hikes in less than a year?  No thanks.
 I can buy new blurays for as low as $5 and usually find them between $7 and $10.  If its something I dont care to own and just want to see Ill use Red box for $1.50 , considering I averaged less than 4 discs a month from Netflix, they basically just priced themselves out of my household.
 I wont miss the streaming that much and I am an Amazon Prime member so Ill fall back on that.   
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« Reply #28 on: July 13, 2011, 04:10:51 AM »

Crazy that $6/month or less of an increase is such a deal breaker for so many people.
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leo8877
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« Reply #29 on: July 13, 2011, 04:21:38 AM »

I'll probably cancel streaming because I never use it.  If they offered new stuff, then I'd keep it for sure.  No way I'm canceling my blu-ray deliveries though, I never go to the movies, so that's how I get to see stuff.  Screw $6 a pop for on-demand stuff.
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« Reply #30 on: July 13, 2011, 04:30:02 AM »

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Most of us ain't gellar.  icon_razz

And I got the email from Netflix:

Quote
Dear Armando,

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $11.99 a month membership for unlimited streaming and unlimited DVDs (including Blu-ray access) will be split into 2 distinct plans:

   Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
   Plan 2: Unlimited DVDs (including Blu-ray), 1 out at-a-time (no streaming)
              for $9.99 a month

Your price for getting both of these plans will be $17.98 a month ($7.99 + $9.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

A rate increase of 6 bucks over my current plan. Will have to meditate on this one.  icon_razz
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« Reply #31 on: July 13, 2011, 04:31:13 AM »

Quote from: gellar on July 12, 2011, 07:29:57 PM

Quote from: Jumangi on July 12, 2011, 07:09:32 PM

Netflix wants people to drop their DVD/Bluray plans. The mailing costs, buying discs, and running the distribution centers eats up allot of their money. Plus when the next round of licsensing deals starts to come around they will cost them allot more.

I sincerely doubt that.  That distribution has proven to be profitable over the years (and actually only gotten more profitable) and is their competitive differentiator.  Their streaming content is very similar to Amazons.  Without the physical disc model, Netflix would only be able to compete on price/platform, neither of which have high barriers to entry.

This.

Plus, Netflix in their own blog post about the rate changes stated they have a very large segment of their subscriber base who have zero interest in streaming.
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« Reply #32 on: July 13, 2011, 05:31:43 AM »

Quote from: Jumangi on July 12, 2011, 07:09:32 PM

Netflix wants people to drop their DVD/Bluray plans. The mailing costs, buying discs, and running the distribution centers eats up allot of their money. Plus when the next round of licsensing deals starts to come around they will cost them allot more.

Well then that backfired. I'll save $5 a month by dropping streaming. I expect that most of their customers are still DVD dinosaurs like me.
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« Reply #33 on: July 13, 2011, 12:39:53 PM »

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.
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« Reply #34 on: July 13, 2011, 12:47:30 PM »

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Its $6 a month plus the $2 increase already placed on us this year.  Thats an $8 increase in less than a year.  Thats almost double what I was paying a year ago.  I was fine with the cost as it provided me a nice convenience, home delivery at about $3 per disc (based on my usage)    I pass at least 3 RedBox locations on my way to work.  Paying $1.50 per disc instead of $4 on the new plan seems like the smart way to go.  For me, with the recent and future price hikes, the convenience is no longer worth the cost.  Is it a major amount of money that I can not afford? No, but all expenses add up and dismissing it out of hand seems crazy to me.  There will be a lot of people who will swallow the price increases and be happy with the service.  There will also be a lot of people who wont.  For me, anyway, the additional expense is no longer worth the minor convenience Netflix provided me.  Its as simple as that.

I will point out one more issue I have with Netflix.  It seems to me that the longer I remained a customer, the longer I ended up having to wait to get the newest releases.  At first, I would get a new release almost immediately but over the past year the delays got longer and longer. The worst example was the TV series Sherlock.  I had that at the top of my queue for almost 5 months before I received it.  Inception took 4 weeks.  Dexter, 3 months.    I refuse to pay more for a service that has degraded its value like that.  
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« Reply #35 on: July 13, 2011, 12:52:21 PM »

/em hugs his Blockbuster.
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« Reply #36 on: July 13, 2011, 12:56:26 PM »

Quote from: Blackadar on July 13, 2011, 12:39:53 PM

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.

Their streaming licensing fees are about to go up 1000% in 2 years.  What do you expect?
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« Reply #37 on: July 13, 2011, 01:10:09 PM »

Quote from: pr0ner on July 13, 2011, 12:56:26 PM

Quote from: Blackadar on July 13, 2011, 12:39:53 PM

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.

Their streaming licensing fees are about to go up 1000% in 2 years.  What do you expect?

I expect them to continue raising their prices until they go out of business. 
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« Reply #38 on: July 13, 2011, 01:14:11 PM »

Quote from: rshetts2 on July 13, 2011, 01:10:09 PM

Quote from: pr0ner on July 13, 2011, 12:56:26 PM

Quote from: Blackadar on July 13, 2011, 12:39:53 PM

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.

Their streaming licensing fees are about to go up 1000% in 2 years.  What do you expect?

I expect them to continue raising their prices until they go out of business. 

 icon_lol

NFLX investors would disagree with that statement - the stock is up $8.50 in pre-market trading this morning.
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« Reply #39 on: July 13, 2011, 02:04:39 PM »

Quote from: ibdoomed on July 13, 2011, 12:52:21 PM

/em hugs his Blockbuster.

/em blockbuster reaches into ibdoomed's back pocket during the hug and steals his wallet.
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