Netflix Price Changes

jon_ad · 04-16-2004, 07:16 PM

I Just got this email today. Does anybody know what the pricing will be for the other service levels. Also does anyone know of a place that will be cheaper than this for the same amount of movies?

We hope you're enjoying the convenience and selection of Netflix. Our goal has always been to offer a great service at a great price, and we're dedicated to bringing you the largest library of films delivered quickly to your home.

We haven't changed the subscription rate for the 8-at-a-time program in almost 3 years. We've added more than 20 distribution centers in order to provide one business day delivery to most of our members. We've also expanded our library by thousands of titles and now offer more than 18,000 to choose from. During the three years, improvements such as these, as well as postal rate changes, have increased the cost of doing business.

Beginning June 15, 2004, we will be raising the prices of all our subscription programs. Your plan, the Netflix 8-at-a-time program, will change from $39.95 per month to $49.99 per month.

We believe our service offers an exceptional value and hope you'll continue to enjoy the benefits of Netflix at the new price. We realize that you have many home entertainment choices, and we appreciate your business.

Yours Truly,
The Netflix Team

Doesn't it seem strange that at a time when netflix is going more national (ie commercials on TV, etc.) and there is more competition (WALMART) that they would increase prices this much(five bucks maybe.... but over ten)? Seems like bad business to me

GarySchrock · 04-16-2004, 07:41 PM

Ouch, haven't gotten an email from them myself, but I'm currently grandfathered in on the 4 disc plan, at the 3 disc plan price. If you go to their site and go to the help section, it looks like they have the changed price levels for all of them:

Standard - 3 movies out a time for $21.99
Plus - 5 movies out a time for $33.99
Ultimate - 8 movies out at a time for $49.99
Economy - 2 movies out at a time (limit: 4 rentals per month) for $14.99

So it looks like the 3 disc plan goes up about $2. If they let me stay at 4 discs for that price, I'll probably stay. If they try making me drop to 3 discs, or go up to the 5 disc plan I'll probably drop them.

Besides, I haven't been getting the best value out of netflix lately anyways, because I'm over a hundred hours of watching behind on my tivos

.

Luis M · 04-16-2004, 09:01 PM

I can understand when a company hikes thier prices to customers, there's always good reasoning behind it (money) and since everything seems to be going up I don't blame them for it, That is why I will end my deal with Netflix when the time comes. It was fun while it lasted.

Zack_H · 04-16-2004, 09:34 PM

I currently have the 8 dvd plan too. Ya, $10... ouch. I've been thinking of downgrading anyway. But i see the advertisments now... "Rent as many dvds as you like for ABOUT $20 a month!"

GlennH · 04-16-2004, 09:42 PM

[rationalization] Even more reason to keep on buying. [/rationalization]

**HTF Ads**

danak · 04-16-2004, 10:16 PM

To compare old and new prices:
3 out: From 19.95 to 21.99 (10% increase)
5 out: From 29.95 to 33.99 (13% increase)
8 out: From 39.95 to 49.99 (25% increase)

8 out is the biggest hike, at a $10 or 25% increase. Ouch. I bet postal rate hikes are the main culprit. However, I'd still rather rent most of my movies than buy, so that's still a bargain for me, especially if I can rent more per month than what I could get from Blockbuster for the same price.

Dana

TonyD · 04-16-2004, 11:05 PM

still good for me at 21.99 for 4. (grandfathered)

too many movies here for me to buy that this is a no brainer for me.

were else would i be able to rent the criterion movies?
for that price.

EricSchulz · 04-16-2004, 11:09 PM

I will probably downgrade to five rentals after the hike. My local public library has been doing a great job of expanding its collection of DVDs, so that and purchases will take up the slack...

Nelson Au · 04-16-2004, 11:54 PM

I don't use this service, but I heard on the news today that the reason for the price hike is that they've not been making money and they need to do this to stay in business.

Mark Walker · 04-17-2004, 12:09 AM

I had heard that if somone on their economy plan rents more than 4 films a month, they don't make any money. This from a friend who was taking a finance class and one of their projects was to do the stock market and I suggested he look into NetFlix.