Netflix price change

[cellio]

So Netflix just raised my subscription fee 60% (effective September 1). They did this by splitting streaming and DVDs into two separate plans, each costing $8/month, instead of bundling streaming with DVD plans as they do now. They argue that the price increase is due to the high cost of (and demand for) streaming (see recent news about them and Sony, for instance), but if so their pricing doesn't make sense. They didn't raise the price of the current streaming-only plan, and they are now asserting that DVDs cost $8/month to support (for one out at a time) instead of the $2/month suggested by the current pricing model. My current plan is $10/month for streaming + one DVD at a time. If streaming is $8 of that, then they have just raised DVD-rental fees 400%. (Ok, less half the overhead of having a customer account -- but I'm betting that's pennies a month.)

I, unlike others, am not looking for an alternate streaming service. Netflix has the largest streaming catalogue out there (though it has many deficiencies) and it already works for me. I want easy DVD rental because of those gaps in the streaming catalogue. What alternatives do I have for that?

Comments

[goldsquare.livejournal.com]

One has to wonder how predominant that class of DVD only is. If it is predominant, perhaps the message makes more sense. But my feeling is that DVD only is not only a minority of their business, but not where their future growth is going to come from.

It really is much gnashing of teeth over very little. For other consumables I would happily pay $16 and not think twice.

But the message came across as "we're lying and picking your pocket", and that is not a very forgivable marketing message.

[cellio]

Exactly. If Netflix just cost $16, well, that's still way cheaper than cable. But the way they did it feels slimy and I'm having a visceral reaction to that.

And by the way, they sent individual notices to their customers, and they of course know what plans we have, so they had the opportunity to tailor the message. They didn't; I got the "saving you money" line along with my price hike.