Skip to comments.Higher Netflix prices equals fewer subscribers (imposes a 60% price hike!)
Posted on 09/16/2011 12:57:06 PM PDT by LibWhacker
Horror show: Netflix losing more customers than expected on price hike, stock plunges 19 pct
SAN FRANCISCO (AP) -- Netflix's decision to raise prices by as much as 60 percent is turning into a horror show.
The customer backlash against the higher rates, kicking in this month, has been much harsher than Netflix Inc. anticipated. That prompted management to predict Thursday that the company --the largest U.S. video subscription service-- will end September with 600,000 fewer U.S. customers than it had in June.
(Excerpt) Read more at finance.yahoo.com ...
Make that 600,000 and 1.
Just do a google search on free online tv movie sites.
I am actually paying less now since I dropped the dvd service and use streaming exclusively now.
Availability of good On Demand content has plummetted with the price increase. So I am paying more for less. First poster is right, it must be run by dem\libs\progs.
Hows that working for you? Is the streaming service the same as the instant queue? Cuz I gotta say, the instant queue SUCKS big uns for selection.
Bailout for Netflix! Now Showing!
I dropped them and I know several other people who have dropped them as well. You raise the rates 60% during the current economy and expect people will find a different means of entertainment.
My family already has family night on Tuesdays. We are just gonna have more family nights!
I’ll never join Netflix only because their popup ads all over the net irritate the crap out of me. Those damn popups make Netflix someone I don’t want to do business with.
Yes, its the same as the que. I like it, but I primarily use it for whole series of kid shows for my children. I add HBO to my basic cable package for the new releases and their original shows.
HBO GO is an amazing service too, which allows you to steam all of HBO’s content to your IPAD for free, assuming you have a subscription to it through your cable or satalite provider.
Netflix raised the price last year on me and I went with 2 movies at a time instead of 3...this kept the price even or less...if they do it again I’ll drop to one movie at a time...after that then I’ll be streaming one at a time...which is probably what they want in the grand scheme anyway...less overhead.
Game show host:
“And now, for the bonus round:
What comes next in this sequence: rate increase, poor selection...”
Game show host:
When does the price hike start? I just went on their web site and it’s $7.99 per month. (that’s for 1 movie at a time but it’s not bad)
I dropped instant streaming for 1 DVD a month.
Still cheaper than Blockbuster.
They signed a deal with the devil not to provide new releases via the instant streaming option.
It’s just a matter of time before every movie ever made is available via streaming.
I’m probably going to on demand only also. Most new releases that are only on Blu-ray I usually buy anyway.
Netflix, Inc.(NasdaqGS: NFLX )
Real Time 155.36 -13.89 (-8.21%) 4:04PM EDT
We decided to keep Netflix for the time being.
We dropped cable and sattelite about 10 years ago. The price is still reasonable in comparison and we can still find a lot to watch. That and each TV has a device that can play Netflix streaming.
The price hike only hits people that are stream and DVD. It’s pretty much $4 a month more for all plans that cover both, which is a significant chunk if you were on 1 disk and stream (the 60% number being waved around) and not so much for anybody else (under 25% for me on the 3 disks and stream plan).
I changed my 2DVD+streaming to 1DVD+streaming at the first of September. My bill still increased from $16.11 to $17.18.
Some have complained about their DVDs being ‘throttled’ [slow mailing so they get fewer per month]. So far, my turnaround time is still 3 post office days from return to receive. That gives me roughly 7-8 DVDs per month.
I heard today, however, that the PO may be closing the regional mail processing center that is 30 miles away [city where the regional Netflix distribution is also located] to the state capitol 200 miles away. That may impact the frequency of Netflix DVD deliveries, and they may cause cancellations.
But Netflix is getting it from all sides. I'm just now checking out Amazon Prime's month-long free trial, and it's a better product. They have all the same stuff and more. The amazon prime is cheaper ($79 for the year.) It has a vast catalog available for free to prime members, plus you can pay 3 bucks and rent most anything else you can think of. AND you get free shipping from amazon on any purchases.
I like what I'm seeing from Amazon prime, and I've been a netflix customer for years. But this is the real deal. They are going down.
And that's just streaming. REDBOX is kicking their butt in dvd rental. Redbox has a website, I can lookup which kiosk has the movie I want and rent it on the net.
You should check out Amazon prime. It’s better and cheaper.
When did they raise prices? I just checked our account and they were charging us for streaming, which we aren’t capable of doing. I had to change back to the original plan, which is what we signed up for. Can’t believe I missed this.
I suspended my account for 3 months and changed the plan to cheapest available DVD only plan when I come back. Wonder if they’re counting me as a cancellation or current customer? If the latter, I bet the backlash is worse than they are indicating.
I didn’t cancel, but I switched from 3 movies out at a time plus streaming to 2 movies out at at time plus streaming. So I’m paying about the same for less. :( At least they didn’t get *more* $$ from me; they are getting the same as before the price hike. Guess they still save $ by mailing to me less.
plus Amazon Prime gives you free 2 day shipping on any Amazon purchases.
I like the Netflix instant/streaming for many of the older series that were on cable or on stations I couldn’t receive where I lived when the series were on.
Some of the providers are also upping their prices to Netflix, since Netflix is making so much $$$. Some have even dropped from Netflix and think they can do better on their own. Hulu has/had a similar problem.
They didn’t have a choice. The cost of their licensing quadrupled in the space of 6 months. There’s a certain amount of increased costs that can be eaten, but not that much.
I don’t think netflix is going down at all. They’re still up above 23 million subscribers. They’re a long long way from being in trouble.
I dropped Netflix earlier this year because their DVD service turned poor suddenly. Some said it was done on purpose to force customers to use their streaming service.
I have a Wii, an Xbox and 3 BR players that all stream Netflix. I have no devices that stream Amazon and my wife really doesn’t care to have a cord running from the computer to the TV.
Sounds like the time the Pittsburgh Pirates raised ticket prices after a 100 loss season. It absolutely blew-up in their faces and they had to backtrack.
One big thing that will hurt, Netflix may be losing their Starz contract which is where they get a lot of the new movies as well as Starz series like Camelot and Torchwood. That will be a major hit if it happens.
First I heard of it. Yes,if it goes up 60% they will loose me. They are not the only movie streaming kid on the block anymore.
Everyone counted them out a year ago. I still like them even though the rates increased. I’m afraid anyone selling DVD’s as they do or renting them will not do well as each year passes due to the gradual acceptance of online streaming over dvds.
See, that's what I thought was going to happen. If I want to see a movie, I want to see it now, not two days from now.
If it's not on NETFLIX, it'll be On Demand, and if not there, I can rent and stream it from Amazon (I think that's about $3).
I've been told they're going to quit the DVD thing entirely in the next 18 months or so anyway.
I cancelled earlier this year when the CEO rationalized charging more in The US than in Canada by describing Americans as too stupid to notice. I noticed...up yours Netflix.
I was a long-time Netflix subscriber and I canceled as well. I had gotten to the point where I really didn't have time to watch all the DVDs or Blu-rays I had in my queue; and they never seemed to have the titles I wanted to stream, so I chose to cancel at the time of the price increase. I'm also an Amazon Prime member, and like you, I decided to take advantage of their "free to Prime members" streaming plan. They've got lots of documentaries and some obscure older films that Netflix does not have.
I'm still not a huge streamer. The movies I really like I buy on Blu-ray. Streaming quality is not near Blu-ray quality.
I dropped the DVD service completely and will keep the streaming most likely until about the first of the year. I prefer watching a lot of the older tv shows and the anime that’s available. I’ve been using Netflix for a really long time and would hate to switch now that they’ve finally released an android app for streaming.
They should’ve let long term customers grand father in at old rates. As for me it works out but of course now I pay less. I wasn’t really using the DVD and Blueray home delivery much so it actually worked out fine. Where they have hurt themselves is the way they did the whole thing. I’d be pissed if I got to the end of the month and I’m getting nothing new and suddenly I’m paying more than twice as much. Companies often forget that one key to success is keeping things simple. Customers like simple and zero stress arrangements.
My biggest criticism for Netflix on content is they really need to enhance their interface. They have added a lot of content but it just isn’t really organized very well. What Netflix needs is to add a vudu type service so that you can build a personal online library that can be played on any device as well as have an adhoc selection library.
They should reverse course on this or at least fix it by providing so many months free etc. They have a good model but they are going to run into more barriers as networks and cable companies enhance their own ondemand content.
They still have 12 million subscribers on DVD, and about 3/4 of their inventory is not available on stream. They ain’t quitting DVD any time soon.
Your suggestion is exactly how Netlfix stream works on my bluray and web interface. You can add things to your instant queue which is there no matter which device you access from, and you can always search the library and just grab something.
They can’t reverse course on this, the fees they’re paying went from under 700 million to over 2.5 billion, they’re just passing on costs.
I am actually paying less now since I dropped the dvd service and use streaming exclusively now.Yep. We pay a lot less now too -- dropped the streaming service.
I have an LG 570, Best Buy had two LG 590’s on clearance for $70 each so I bought them both.
No Amazon but I love the DIVX channel. I watch about as much computer nerd stuff on DIVX for free as I do Netflix streaming. My kids really like the Netflix streaming though.
I hope that Netflix doesn’t drop DVD though, I watch a lot of old TV series on DVD.
While talking to my tow truck driver yesterday :( he said he uses his friends Netflix service - apparently it can be put on 5 devices to watch - his friend gave out service to 3 people.
I watch streaming tv/movies for free on the net so the only interaction I have with Netflix is deleting those stupid pop-ups.
Amazon Prime is addictive.
I don’t go to the store anymore. Get internet quality price competition, and no shipping, and 2 day free delivery.
I use it for Christmas presents every year - guys can get away without wrapping.
I haven’t gone a store (other than grocery) in about a year. And NEtflix will get me to kill cable - as soon as I get off my butt and do something.
Mine went down as well. I have only one possible internet provider at my location and it is too slow to stream movies so I no longer have to pay for that option.
I understand that and I use that but I’m not talking about the instant library of mostly old movies and tv shows which is impressive and I like very much. They however need to add the ability to purchase content that will never go away like VUDU. Also they need to do something to get more instant next day content like comcast and other cable companies have. If comcast can get it they should be able to work something out.
Netflix is great for kids but what amazes me is the amount of older content they don’t have. They have very little Christmas stuff but they have tons of gay lesbo stuff. What leads to that kind of strategy? I also wish they’d let me control exactly what is available in my library. Just let me add shows to a block list or even better limit certain devices so that only kids shows can be available? Instead its an all or nothing thing for all my devices.
There are lot of things Netflix could do but as cable companies enhance their offerrings they are going to find themselves in the same kind of place Blockbuster was in if they don’t become more agile. I’m a big supporter of Netflix but they could’ve done all this in a much better way.
That’s all I have...I can wait for the stream release....I like it and price is good.