Upset that Netflix is raising its prices? Go buy meth where your local Blockbuster used to be!–robdelaney rob delaney on twitter
If your a Netflix subscriber (and I am currently not, but I do join on and off when I get in the mood to watch some movies) you have no doubt heard about the change in pricing coming up this fall making streaming and disc mailing two seperate prices and that being a pretty steep increase if you choose to stick with both (had you been only interested in one or the other not so bad for you). While quick increases might not be good, they also make some sense as getting known for pricing creep a couple bucks now and a couple bucks later adds a lot of uncertainty and Netflix has had fairly long periods of time on the pricing planes although they have changed several times in the past. The backlash at least in cyberspace has been enormous and somewhat surprising, but I have found it interesting that some of the backlash is pretty unrealistic, demanding in their “Dear Netflix” tweets that the price shouldn’t go up and oh get more streaming content. The reality of the situation is Netflix was able to grow streaming on the cheap as content providers had yet to learn the income that could be earned from it and two because they needed to grow to a certain size to get their streaming tech put into every blu-ray, connected tv, video game system, etc and one way to do that was keep it cheap/give it to everyone with Netflix. So fast forward a few years, add in some new content deals that have cost a lot more to Netflix and add that customers don’t seem happy w/ only obscure content and demand more high value content and price increases were inevitable.
But don’t worry Netflix folks there is competition out there to keep a check on Netflix despite every mail order disk besides the red envelope failing, folks like myself who would be prime users can get away from it. I am pretty stocked up on movies on our DVR right now w/ Directv (during the first three month promo we had every channel it seemed and that meant a lot of movies) couple that with the HBO Go service that streams every episode of HBO shows ever (yeah, ever, pretty neat) and you can see that Netflix doesn’t have any time at my place. Add in some things like Hulu, YouTube getting into premium content, along with RedBox, on demand content via cable/sattelite and any number of online video services, Amazon (their prime subscription gives quasi Netflix content) and iTunes. So basically yeah price increases suck, but this has to happen if online content is going to become their primary business, which there is no doubt is where they are going as mailing DVDs is not the future.