Netflix lowered monthly rates, what about their future? (1 Viewer)

[TonyD]

it appears that netflix is testing different rates for new customers.

if you clear your cookies and go to netflix you will see a variety of different sign-up prices.
15.99
17.99
19.99 and the regular price of 21.99.
this is for the 3 out plan.
apparently there is a rumor that amazon is about to start an online rental program.
more discussion here.

http://www.dvdtalk.com/forum/showthr...57#post5431357

 

[Chris Lockwood]

It's more than testing- they announced they are cutting their rates. Their stock price took a tumble, since this will wipe out the projected profit.

http://money.cnn.com/services/ticker...7_FORTUNE5.htm

 

[Derek_C]

So, do current Netflix customers need to cancel and then re-sign up to get this new price?

 

[Chris Lockwood]

Cutting their rates means cutting their rates. Why would you need to rejoin?

I can't rejoin, because I can't get my 4-at-a-time plan if I do that.

 

[David Illingworth II]

Not working for me. I just went there (after clearing out everything), and it still say $21.99 a month. Weird.
I recently switched to Blockbuster because of the lower price, but I'm not satisfied with their service ... everything I put in the queu is listed as "short wait" "long wait." It's ridiculous.

 

[GlennH]

I've tried several times to clear all netflix.com cookies and reload and I always get $17.99 as the price, both with IE and Firefox browsers. Haven't been able to get the $15.99 to come up. Not sure I want to sign up anyway.

EDIT: Tried it some more and was able to get $21.99, $19.99, and eventually $15.99 to come up. So if you're interested definitely keep trying to clear cookies and get the best price.

 

[Tom B]

Straight from the Netflix site:

"Q: Is Netflix reducing prices? When?
A: We are lowering the prices on all of our subscription programs effective November 1st, 2004. We will automatically change your billing rate to the new lower price at the time of your November billing cycle."

Tom

 

[David Illingworth II]

excellent! I guess I'll stay with Blockbuster until November at least. We'll see.
Apparently, neither Blockbuster or Netflix has the Hellboy Director's Cut, so no need to switch based on selection just yet.

 

[Steve Tannehill]

My corner Blockbuster had Hellboy DC for sale...

- Steve

 

[ScottNJ]

Just got a e-mail from Blockbuster online saying their $17.49 pricing plan (3 movies out at a time) starts October 25th.

 

[Aurel Savin]

I really don't care much if they lower prices or not. For the year or so I've had Netlfix, their service has been unbeatable.

 

[Keith I]

Current customers do not need to do anything. Starting with your November billing cycle, you will get the new price if your number-of-discs-out per month is the same as their new structure. For example, those who have the 3-out for $21.99 will get the new $17.99 price automatically starting November.

To find the information, log in and go to "Your Account."

Go to "View Membership Terms."

In the right column under "Related Questions," the first Question (for me, anyway) was the information Tom B posted above.

So ... when (if) Netflix starts making a profit, will their prices go up again?

 

[Steve Tannehill]

Conventional wisdom would be that they need to raise their prices until they make a profit, which they don't project until next year.

That's why their stock took a hit.

- Steve

 

[Steve Tannehill]

(duplicate)

 

[Eddy-C]

I was going to cancel my subscription in November to save money but I guess I'm not doing that now.

 

[Sami Kallio]

Just got an e-mail about this. Needless to say I'm happy but I would have been a happy customer even with a higher price than $21.99. The service is awesome.

 

[Chris Lockwood]

> Conventional wisdom would be that they need to raise their prices until they make a profit, which they don't project until next year.

Not really. They would have been profitable if they had kept the higher pricing AND the same customer base. The question is how many people would they have lost to lower-priced competitors, especially if Amazon got into the game.

I'm glad to save a few bucks a month, but I hope they made the right call so they'll be in business long-term. I'm glad I didn't buy their stock, though.

The problem with their business model is that it's so easy to copy for anyone who has the money to do so. Go look at Blockbuster's site to see what a close ripoff it is. They don't really even try to make it different.

 

[Dick]

I just rejoined Netflix for the sixth time (!) and suddenly I find their service incredibly fast - they just added an outlet only 50 miles from me, and now suddenly it takes only a day each way for the movies to be shipped. This (finally) makes the service an incredible bargain after years of waiting 3-5 days for DVD's to reach me in Maine, and I just heard that the company was bordering on Bankruptcy. How bad is the situation - any really know?

 

[TonyD]

thats why i thought the coupons and bargain section was good for this (were it was moved from). oh well, i've been wrong before

 

[Steve Tannehill]

I only noticed this because it was in Coupons and Bargains...

- Steve