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Netflix Informative - Netflix's big rate increase marketed as lowest price ever? Huh?
LOS GATOS, Calif., July 12, 2011 /PRNewswire/ -- Netflix Inc. (Nasdaq:NFLX - News) announced today it is launching new unlimited DVD-only plans in the U.S. at their lowest price ever– only $7.99 a month for the 1 DVD out at-a-time plan and $11.99 a month for the 2 DVDs out at-a-time plan.
New members can sign up for these plans by going to DVD. Netflix.com.
Netflix also announced it is separating its unlimited streaming and unlimited DVD plans in the U.S. to better reflect the costs of each and to give members a choice: a streaming-only plan, a DVD-only plan or the option to subscribe to both.
With this change, Netflix will no longer be offering unlimited plans that include both streaming and DVDs by mail. The unlimited streaming plan will remain at $7.99 a month. The price for getting both unlimited streaming and unlimited DVDs will be $15.98 a month ($7.99 + $7.99).
For new Netflix members, the changes will be effective immediately. For existing members, the new pricing will start for charges on or after September 1.
"Netflix members love watching instantly, but we've come to recognize there is still a very large continuing demand for DVDs by mail," said Andy Rendich, Netflix Chief Service and Operations Officer. "By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail members."
Netflix introduced streaming to its popular DVD-by-mail business in 2007. Since then, membership has climbed from 6 million to 23 million in the U.S. as people have embraced the idea of watching instantly an ever-expanding library of movies and TV shows on the hundreds of consumer electronics devices capable of streaming movies and TV shows from Netflix right to members' TVs.
New members can sign up for these plans by going to DVD. Netflix.com.
Netflix also announced it is separating its unlimited streaming and unlimited DVD plans in the U.S. to better reflect the costs of each and to give members a choice: a streaming-only plan, a DVD-only plan or the option to subscribe to both.
With this change, Netflix will no longer be offering unlimited plans that include both streaming and DVDs by mail. The unlimited streaming plan will remain at $7.99 a month. The price for getting both unlimited streaming and unlimited DVDs will be $15.98 a month ($7.99 + $7.99).
For new Netflix members, the changes will be effective immediately. For existing members, the new pricing will start for charges on or after September 1.
"Netflix members love watching instantly, but we've come to recognize there is still a very large continuing demand for DVDs by mail," said Andy Rendich, Netflix Chief Service and Operations Officer. "By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail members."
Netflix introduced streaming to its popular DVD-by-mail business in 2007. Since then, membership has climbed from 6 million to 23 million in the U.S. as people have embraced the idea of watching instantly an ever-expanding library of movies and TV shows on the hundreds of consumer electronics devices capable of streaming movies and TV shows from Netflix right to members' TVs.
Comments:
Posted by Anonymous on 2011-07-12:
My boyfriend will not be happy about this. He has both the streaming and the mail order plan. Good review Churro
Posted by Churro on 2011-07-12:
Wow this is a big price increase. I'm on the $9.99 a month plan for unlimited streaming and one disc out at a time. Now it's gonna be $15.98? Heck, it's time to drop down to the $7.99 streaming only or suffer a 60% price increase.
Why is it the more things change the more they suck?
Why is it the more things change the more they suck?
Posted by madconsumer on 2011-07-12:
great review Churro (not charro)
i found this very helpful!!
i found this very helpful!!
Posted by BEJ on 2011-07-12:
It will be interesting to see what my rate will be. I get unlimited 3-dvd at a time plus streaming. Might have to change my plan.
Thanks for the review!
Thanks for the review!
Posted by Churro on 2011-07-12:
BEJ, If you log into Netflix then click on your account -> change rate plan ... it will explain your new rate.
Thanks shorty, mad and BEJ.
Thanks shorty, mad and BEJ.
Posted by MRM on 2011-07-12:
So far, I havent had the need to sign up for NetFlix as I go to my local video store and rent movies. I only rent 1 or 2 movies a month.
Posted by ktisnumeroUNO on 2011-07-12:
Yeah I got the email about this today.. we were on the 1 DVD at a time with unlimited streaming for $9.99. Now I downgraded to streaming only because I totally refuse to pay $16 for Netflix. Its so bogus. I'm also irritated that long standing customers aren't being grandfathered into their plan, and are being forced to switch. Boooooo!
Posted by Churro on 2011-07-12:
MRM, You're all the time bragging on here about pirating movies off the internet and you advocate it for others as well. Basically you're a freeloader benefiting from the rest of us who are willing to do the honest thing by paying for content. So of course you have no need to sign up for Netflix.
Posted by kinthenorthwest on 2011-07-12:
The reason there is such a demand for the DVDs by mail is that 90% of their streaming videos are like a year or so old...
I figure for the price and the turnaround..I will either rent from one of my other applications, my local store or wait...
Turn around for many ends up with you getting maybe 2 dvds with the cheaper plan and just maybe 4 with the next step up a month.
I have some friends that said there can be a wait of a month or two for the newer shows too.
So figure it out guys I have...
Might want to ck into VuDU, which is a pay as u use streaming..
It has a $2 for 2 nights which ends up being much better....Also VuDu has this daily $1 a day that changes..I actually got some really good bargains on that part of VuDu, once it was one that had just gone into the DVD circulation.
Except for the $2 bargain part, you don't have to watch it that day, but if you start watching its only good for 24 or maybe 48 hours.
Just for added info...VuDu had Part I of the latest Harry Potter for streaming, about a week before Netflix had it by mail.
I figure for the price and the turnaround..I will either rent from one of my other applications, my local store or wait...
Turn around for many ends up with you getting maybe 2 dvds with the cheaper plan and just maybe 4 with the next step up a month.
I have some friends that said there can be a wait of a month or two for the newer shows too.
So figure it out guys I have...
Might want to ck into VuDU, which is a pay as u use streaming..
It has a $2 for 2 nights which ends up being much better....Also VuDu has this daily $1 a day that changes..I actually got some really good bargains on that part of VuDu, once it was one that had just gone into the DVD circulation.
Except for the $2 bargain part, you don't have to watch it that day, but if you start watching its only good for 24 or maybe 48 hours.
Just for added info...VuDu had Part I of the latest Harry Potter for streaming, about a week before Netflix had it by mail.
Posted by Vinnie11 on 2011-07-12:
I think this is outrageous. I am going to cancel it. I have Amazon.com Prime shipping. I shop on Amazon quite a bit and when you purchase Prime, you get unlimited 2-day shipping. They recently added free streaming videos and for streaming, I can usually find what I want to see there more often than Netflix. They will probably find this is a very bad move for them as a business. I didn't mind the $2 increase we had just a few months ago but not biting on this one :(
Posted by kinthenorthwest on 2011-07-12:
Vinnie I saw that ... How is that working out.
I was thinking of dropping my Netflix in favor of it when I found it..
I was thinking of dropping my Netflix in favor of it when I found it..
Posted by Vinnie11 on 2011-07-12:
I enjoy Amazon. Sometimes it isn't available on the free side and if Netflix didn't have it either, I would pay for it on Amazon but the costs are low. I think $3.99 is the highest I've paid for something and $1.99 is the lowest. So if Netflix is going to be $16.00, I could rent about the same amount of Amazon movies that I watch thru Netflix and even better if they were included free thru Amazon Prime. They have a decent selection.
Posted by Old Timer on 2011-07-12:
Cox on demand isn't bad if you don't rent to many current titles a month. You only have to pay for what you rent. The year old stuff is often free or $1.99 - $2.99. Movies get in the way of sports broadcasts so I'm not a good potential customer for any of the movie rental houses.
Posted by Vinnie11 on 2011-07-12:
I have Cox. I'll have to check them out!
Posted by madconsumer on 2011-07-12:
mrm it is not good to brag about pirating software and movies.
Posted by MRM on 2011-07-12:
You are right, MadC. From now on I shall deny everything and burn my stash of movie collection.
Posted by Vinnie11 on 2011-07-12:
MRM, you know that's illegal. Right?
Posted by MRM on 2011-07-12:
Its only for personal use. As long as Im not selling softwares or movies I'll be alright.
Posted by Anonymous on 2011-07-12:
Don't worry MRM. Nobody will find you. You're safe in mommy's basement
Posted by Anonymous on 2011-07-12:
Hush now MRM, baby, don't you cry.
Mamma's going to check out all your girlfriends for you,
Mamma won't let anyone dirty get through,
Mamma's gonna wait up until you get in.
Mamma will always find out where you've been,
Mamma's gonna keep baby healthy and clean.
Oooh MRM, Oooh babe, Oooh babe,
You'll always be baby to me.
Mamma's going to check out all your girlfriends for you,
Mamma won't let anyone dirty get through,
Mamma's gonna wait up until you get in.
Mamma will always find out where you've been,
Mamma's gonna keep baby healthy and clean.
Oooh MRM, Oooh babe, Oooh babe,
You'll always be baby to me.
Posted by Anonymous on 2011-07-12:
Love Pink Floyd, rip
Posted by Casper on 2011-07-12:
My cable provider warned me that Netflix was going to raise their rates but I never expected a 60% price increase. I wish I had known of their underhanded intentions before I invested in the extra equipment required to use their service. I'll use their $7.99 streaming service just until I can find a more honest company to do business with. Unforunately I've been recommending Netflix to all my friends. I guess I've got some calls to make and perhaps a few apologies.
Posted by raven2010 on 2011-07-12:
This also annoyed me when I read my email today. I had the unlimited streaming plus one DVD (for those things i want NOW that are not yet available on streaming)
So sure, I go from 10 bucks to 8, but I lose the DVD. I refuse to increase my bill by over 50% for the same exact service.
So sure, I go from 10 bucks to 8, but I lose the DVD. I refuse to increase my bill by over 50% for the same exact service.
Posted by clutzycook on 2011-07-13:
You know, I never got the email about this from Netflix. I heard about it via facebook (and then Hubby heard about it on the radio and called me). You should see the backlash they got on their facebook page about this. Within 3 hours, they had over 6000 posts basically telling them where they can stick their plan changes. By the time I went to bed last night, there were over 10,000 messages telling them to shove it. As of right now, there are over 27,000 posts. I tried several times to call them yesterday but they just disconnected the calls because they had too high of volume. I'm on hold with them right now and they say my average wait time is 27 minutes. I may or may not stay on the line.
Posted by Anonymous on 2011-07-13:
We have Netflix ( streaming only )...We found that when we did receive discs at home they would just sit forever unwatched, so we cancelled that part of the service..
Posted by Old Timer on 2011-07-13:
Even with the 1,000's of complaints everywhere on the web, mostly on FaceBook NetFlix stock is up today. Wall Street must have liked the move.
Posted by Anonymous on 2011-07-13:
good review. I used netflix for a free trial period. Im not sure how long ago, but found renting at the library or streaming them on youtube more convenient $$
Posted by Vinnie11 on 2011-07-13:
Clutzy, I just got the e-mail this morning. They must be sending them out in batches.
Posted by clutzycook on 2011-07-13:
Could be, Vinnie. Of course, if you haven't heard the news by now, you're probably living under a rock and don't even get email :). The internet: better than the small town grapevine :).
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