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Most Netflix Customers Don't Realize Prices Will Increase Next Month (time.com)
An anonymous reader writes: Millions of Netflix customers are about to start paying more to stream their favorite movies and TV shows -- and chances are, they don't even realize it. In May 2014, Netflix raised the price of its standard streaming plan for new subscribers, to $9.99 a month. However, the price hike did not apply to existing customers, who were grandfathered into their current rates of $7.99 a month for a two-stream, HD plan, Business Insider reported. Unfortunately, the good times are about to end for this customer base, which analysts estimate at about 17 million people, or 37% of Netflix's U.S. subscribers. In May, all grandfathered customers will be required to fork over $9.99 to continue to watch Netflix. Even worse, about 80% of those who will be affected by the price increase did not realize it was coming, according to research from JP Morgan.
2 years ago, Netflix sent out an email explaining all of that, and avoided a backlash. I thought is was reasonable that they would wait two years to increase the cost to current customers, and in doing so gave me a lot of time to decide what, if anything I would do.
This isn't a story. If anything it was one of the first times that Netflix changed things the right way for once.
_ _ _ Go for the eyes Boo! GO FOR THE EYES!
"the good times are about to end for this customer base, which analysts estimate at about 17 million people, or 37% of Netflix's U.S."
Last official member numbers from Netflix were 74M customers (end of 2015). That means that 22% of the customer base is impacted (or 37% of Netflix's US customer base. Whether you choose to look at the 22% (since article title talks about "most Netflix customers," not "most US Netflix customers"), or the 37% number, neither represents "most."
It'd be far more correct to say that most Netflix customers for whom prices are finally going up don't realize it's going to happen.
Kinda wonder how many of them will care ...
Still way cheaper than cable TV which not only costs more out of pocket, it has tons of brain-rotting commercials.
One of the things with any cloud-based service (video streaming, AWS, etc.) is that prices are artificially low right now. AWS, Azure, Google Cloud etc. are practically giving away capacity to get companies hooked on their services. At the same time, all the VC-funded startups are subsidizing this cloud build-out so they can continue operating. Netflix and Hulu are pouring money into original content to get more eyeballs a la 1999.
The thing to consider is how fast the price on all these things will go up when Social Mobile Streaming Bubble 2.0 pops. I think this entire market is being propped up by the bubble and will have to come back to Earth sometime. Video streamers are going to have to increase their prices or not offer as much expensive content for the same price, and cloud providers are going to have to cut back on the freebies and crank up their rates.
It's still far cheaper than paying the cable company for 200+ channels I don't want. And if a $2/month increase means Netflix can finance more of its own shows, I'll happily pay it. Daredevil and Jessica Jones alone are well worth an extra $24/year for me.
No live sports, no live politics, no C-SPAN, CNN, MSNBC, FOX News. Definite advantage over cable!
If you think you should pay less because you're still using an obsolete system that's fading away, stop paying them. You're not entitled to a rate-cut, and shouldn't be wasting resources shipping plastic discs when even old people are able to stream their media now.
If you're not happy with NetFlix, and are fixated on plastic discs, there are competing services for technology-limited people. This is all on you.
It's $2 extra a MONTH. Get a grip people!!!
I'd gladly pay double the current price for Netflix.
P.S. for those that complain Netflix doesn't have too many big movies, get the Starz direct app.
"There is more worth loving than we have strength to love." - Brian Jay Stanley