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Netflix Price Changes


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#1 of 27 OFFLINE   jon_ad

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Posted April 16 2004 - 12:16 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

#2 of 27 OFFLINE   GarySchrock

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Posted April 16 2004 - 12:41 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 Posted Image.

#3 of 27 OFFLINE   Luis M

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Posted April 16 2004 - 02:01 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.

#4 of 27 OFFLINE   Zack_H

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Posted April 16 2004 - 02:34 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!"

#5 of 27 OFFLINE   GlennH

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Posted April 16 2004 - 02:42 PM

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

#6 of 27 OFFLINE   danak

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Posted April 16 2004 - 03:16 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

#7 of 27 OFFLINE   TonyD

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Posted April 16 2004 - 04:05 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.
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#8 of 27 OFFLINE   EricSchulz

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Posted April 16 2004 - 04:09 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...

#9 of 27 ONLINE   Nelson Au

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Posted April 16 2004 - 04:54 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.

#10 of 27 OFFLINE   Mark Walker

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Posted April 16 2004 - 05:09 PM

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.

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#11 of 27 OFFLINE   jon_ad

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Posted April 16 2004 - 06:29 PM

Yeah I checked there investor website and saw they lost about 6 mill in the first quarter of 2004 so i can see a reason for the increase but it still hurts the wallet. I would like to have their 27 million dollar dvd library.

quarterly report

#12 of 27 OFFLINE   Jeff D Han

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Posted April 17 2004 - 12:06 AM

I have the 3 movie subscription, so an extra $2
a month is no biggie. I would definitely downgrade
if I had the 8 movie plan- a 25 percent increase is
a bitter pill to swallow.

It would be a shame to see Netflix go belly up. I love
the service- it beats going to rental stores and worrying
about late fees, the selection is great, and their service
has been problem-free for me.
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#13 of 27 OFFLINE   Tim-H.

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Posted April 17 2004 - 02:04 AM

I have the 3 movie subscription, too, and another $2 is fine by me.
I've seen so many great movies through Netflix that I would NEVER find to rent at a store, and would have been impoverished buying them all. (I almost never blind buy any more. I've rented movies from Netflix, like Once Upon a Time in America, then gone straight out to buy it.)

And if they are going to start offering video games, that's a huge plus for me. Dropping $50 for a game, even a good one, is hard for me. I used to rent games from Blockbuster--what few they had on the shelves--but will no longer cross their threshold, even if invited.

Another factor to the mailing expenses must be the damaged and missing discs. In about 3 years, I've gotten 6 or 7 cracked discs, and not received 5 or 6 movies in the mail. Gotta add up.

Lastly, I do think the upper-tier renters (5- and 8-out) should get a better break. Not like I wanna pay $24 a month for 3, but...
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#14 of 27 OFFLINE   BryanV

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Posted April 17 2004 - 05:08 AM

Well this is the second rate Hike is 4 years time. Do I like it? NO!!! But I would die if Netflix went under. What do you guys think about them getting into adult rentals? Do you think it would help them out. I did look online and there is an adult service in the same city as Netflix... hmmmm i just wonder.

#15 of 27 OFFLINE   Jeff_HR

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Posted April 17 2004 - 06:06 AM

This price hike is an example of why I don't rent & only buy. If I were to rent a film before buying it then I'll have spent "X" amount of money on it over & above the retail price that I'm paying. That is not a good deal in my eyes. Plus I don't see the retail price of DVDs going up.
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#16 of 27 OFFLINE   george kaplan

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Posted April 17 2004 - 08:24 AM

If I were to rent a film before buying it then I'll have spent "X" amount of money on it over & above the retail price that I'm paying.
And if you don't like 90% of the films you buy, then you've wasted a hell of a lot more money buying them, than you would have if you'd rented them first.
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#17 of 27 OFFLINE   Chris

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Posted April 17 2004 - 10:17 AM

Quote:
Ouch. I bet postal rate hikes are the main culprit.

Actually, I'd bet the biggest reason for the price increase is this:

Person A gets 8 titles at a time.
They get 8 titles on Monday, rip them, send them back in same day mail.
Netflix receives Wednesday, ships new, Customer has new on Saturday, rips, sends back same day..

And thus, someone goes through 64 titles in a month (or close)

I say this not because it's a theory, but because a good friend who works at Netflix tells me so Posted Image
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#18 of 27 OFFLINE   jon_ad

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Posted April 17 2004 - 10:43 AM

that is a good theory except that the mail turnaround is not that fast the most movies i have ever gotten in a month is about 35

#19 of 27 OFFLINE   Chris

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Posted April 17 2004 - 11:42 AM

The day after I drop movies in the mail, Netflix reports them arrived. The next day, within 2 days, I have new movies. So If I drop off on Monday, I almost always have new films back on Thursday.
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#20 of 27 OFFLINE   Sami Kallio

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Posted April 17 2004 - 12:56 PM

Won't bother me. They let you stay on the 4 movie plan for $21.99 a month. Still a good deal for me as I watch more than 5 movies a month.