Slashdot Mirror

← Back to Stories (view on slashdot.org)

Most Netflix Customers Don't Realize Prices Will Increase Next Month (time.com)

Posted by msmash on from the shelling-out-more-bucks-for-streaming dept.

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.

30 of 213 comments (clear)

  1. Danger Will Robinson! by kamapuaa · · Score: 5, Funny

    Holy shit, after two years they plan on charging customers $2 more per month!

    --
    Slashdot: providing anti-social weirdos a soapbox, since 1997.
    1. Re:Danger Will Robinson! by Richard+Dick+Head · · Score: 2

      Even so, in the big picture Netflix is insanely cheap. The opposite extreme is online dating services who want 20 bucks a month to serve tiny JPEGs, text messages, and mobs of hired fake users who chat but disengage when its time to meet up. As an alternative to a $150/mo cable bill it really rocks.

      --
      The real path to male liberation
    2. Re:Danger Will Robinson! by Archangel+Michael · · Score: 2

      Or, less than a Latte at your coffee shop.

      This reminds me of when I sold computers and stuff in the early 90s, and people would drive 90 Miles (literally) to save $5 on a printer ($500 one). Which was more than the profit on those. But they would invariably forget the Cable (Parallel ) and come in to the store go get one. We sold those for $14.95 each, and got them in bulk for around $.75 each.

      People know the price of everything and the value of nothing.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    3. Re:Danger Will Robinson! by CaptnCrud · · Score: 2

      You do know netflix has streaming services too, right? I would even go so far to say I haven't used the "disc" rental feature in 5 years....

    4. Re:Danger Will Robinson! by Cito · · Score: 4, Interesting

      Thing is since 2008 Netflix streaming titles have shrunk by 53%

      And the once epic Anime section all gone but a few.

      Because once they got popular and net neutrality debated "fast lanes" and filtering Netflix, to try and kill it 15 studios pulled all their content off Netflix

    5. Re:Danger Will Robinson! by j-beda · · Score: 4, Informative

      Hopefully the "family" plan will be better. My wife has her own basic subscription too (she used to be a DVD only person until we got married and I bought her an iPad). I think we could save a buck by combining. eh. She likes the independence and a buck is worth that.

      I don't know what "independence" she might be enjoying that is not available in a single subscription - the online stuff can be segregated into different "profiles" (or whatever they might be called) so your "My Little Poney" viewing habits do not pollute her "Serious Cinema" choices. As I recall from our days of DVD Netflix - there are similar features for ordering disks. You could alway cancel your subscription and ask to join her's - give her all the control.

    6. Re:Danger Will Robinson! by phishybongwaters · · Score: 2

      That's interesting, some of the content you say they removed is available, right fucking now, on the canadian netflix. Anyhoo, it's not really netflix who is at fault for the lack of content, you can thank the insane copyright and licensing laws, and only those laws. I'm still paying, and I'm getting my 9.99$ worth every single month. The content not available to me via netflix legally can always be obtained elsewhere. It really depends on how you consume media, netflix doesn't fit everyone. And after reading the rest of your comment I do have to ask, in all seriousness, where the fuck do you live? Netflix has a shit load of ways to find movies, including "popular" "trending" and any other way you can describe a movie "exciting movies" "old movies" so honestly, i'm at a loss to figure out what the fuck service you actually have, cause it doesn't sound like netflix. It sounds like popcorn time.

    7. Re:Danger Will Robinson! by Swave+An+deBwoner · · Score: 2

      Some films they offer are available only on DVD, not streaming. I've encountered several that I wanted to watch but couldn't because I don't pay extra for their DVD subscription service.

    8. Re:Danger Will Robinson! by Gr8Apes · · Score: 2

      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.

      Until the wannabe streams are anywhere near the quality of disks (BDs, not DVDs) then I'll consider switching. Until then, you can watch your pixelated Dolby Stereo 3 Mbps streams. To get anywhere near BD quality with Dolby Atmos / DTS:X quality, you're going to need a stream somewhere above a combined 15Mbps at a minimum. No one is streaming anywhere near that, not even those supposed 4K streams. To get a semblance of what's happening, take a 20MB photo of a city scene with a tree and flowers and cars and convert it to a 100KB JPEG, and then take a lossless CD rip of something interesting with wide dynamic range and convert it to a 64Kbps audio stream. Those would be the rough comparisons of what the streaming companies are doing to your video and audio.

      --
      The cesspool just got a check and balance.
    9. Re:Danger Will Robinson! by xrobertcmx · · Score: 2

      Some of us still prefer the mail order blu-ray/dvd service. Be it annoying caps some internet providers impose, the lack of decent broadband in many rural, urban, and American communities.

    10. Re:Danger Will Robinson! by Darinbob · · Score: 2

      CBS gives you 5 episodes of a show for free; but if you subscribe you get 7! Wow, two extra episodes. Clearly CBS has their finger on the pulse of penny pinching Americans.

      All these other wannabe streaming services haven't quite figure it out. We want one subscription with a large variety, not 10 different lackluster subscriptions that cost more combined than the original satellite or cable plans.

  2. Netflix by the_Bionic_lemming · · Score: 5, Insightful

    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!
  3. Funny use of "most" by CrankyFool · · Score: 3, Insightful

    "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 ...

    1. Re:Funny use of "most" by phorm · · Score: 2

      Oh noes, that means I'll have to pay $120/yr for Netflix, which may be slightly more than a month of cable or satellite service (and minus the commercials). I guess I'll take the other $1000 and buy the stuff that's not available on Netflix

  4. EVEN WORSE by PCM2 · · Score: 2

    Even worse ... Netflix grandfathered in all these old customers at a time when it didn't have a large and growing library of exclusive content that is winning critical acclaim left and right.

    Netflix ... the 80s schoolyard crack dealer of internet streaming. FOR SHAME!

    --
    Breakfast served all day!
    1. Re:EVEN WORSE by xxxJonBoyxxx · · Score: 2

      >> when it didn't have a large and growing library of exclusive content that is winning critical acclaim

      Netflix's original content (including and especially current "House of Cards") is for shit.

      I signed up for the "video store on demand" quality, especially the all-you-can-eat, kind-of-watch-it-in-the-background while my kids eat cereal, I work on taxes, etc.

      They're opening the door to competitors who just do the "old Netflix" if they keep it up with their current "let's make original content" kick.

    2. Re:EVEN WORSE by 93+Escort+Wagon · · Score: 3, Interesting

      Netflix grandfathered in all these old customers at a time when it didn't have a large and growing library of exclusive content that is winning critical acclaim left and right.

      You omitted the part where they've also been losing third party content left and right... and THAT's actually the content I care about.

      They keep recommending their self-produced stuff to me, and somehow it's always "best guess" rated 5 stars. Then I watch it, and it's more like 2-3 stars - it's not all that good. But I'm sure they can hunt around and find "critics" who will like almost anything.

      --
      #DeleteChrome
    3. Re:EVEN WORSE by omnichad · · Score: 2, Informative

      They're opening the door to competitors who just do the "old Netflix" if they keep it up with their current "let's make original content" kick.

      They're doing their own original content because licensing costs are going WAY up from when they first started. A competitor can't do what Netflix did at the prices Netflix charged anymore, because the content owners are asking for more money now.

  5. And we'll all happily pay it... by jasno · · Score: 4, Interesting

    to continue to have access to their mediocre collection of content.

    Hulu Plus with adblocking is far and away a better return on investment... that said, I cut the cable, so I'll happily throw $10 at them so I can keep myself busy browsing their catalog for something to watch. That activity alone eats up hours of my time every month.

    On an unrelated note... Does anyone else feel like we should be able to pay for access to content separately from the UI? I know solutions like TiVo allow you to search multiple content providers, but you still have to use a different user interface for each provider. I'd rather have a single UI(don't mind paying for it) and just pay Hulu, Netflix, Vudu, etc for access to their content. I don't need 5 streaming apps, each with it's own quirky UI.

    --

    http://www.masturbateforpeace.com/
  6. Still worth it by duke_cheetah2003 · · Score: 4, Insightful

    Still way cheaper than cable TV which not only costs more out of pocket, it has tons of brain-rotting commercials.

    1. Re:Still worth it by myowntrueself · · Score: 2

      Still way cheaper than cable TV which not only costs more out of pocket, it has tons of brain-rotting commercials.

      Hey its commercials or moonshine.

      --
      In the free world the media isn't government run; the government is media run.
  7. Question is how fast the next increase follows. by ErichTheRed · · Score: 5, Insightful

    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.

    1. Re:Question is how fast the next increase follows. by Anonymous Coward · · Score: 2, Informative

      AWS, Azure, Google Cloud etc. are practically giving away capacity to get companies hooked on their services.

      I don't know about the others, but AWS is very profitable to Amazon (just in case you missed the news):

      Amazon on the whole is famous for operating with razor-thin margins, but AWS is making a good profit. AWS had $7.9 billion in net sales in calendar year 2015 with an operating income of $1.9 billion, according to the company's latest earnings statement. Revenue and profit accelerated toward the end of the year, with $2.4 billion in sales in Q4 and $687 million in operating income. AWS would just need to boost sales to $2.5 billion a quarter to hit $10 billion in 2016.

  8. So? by macaddict · · Score: 3, Insightful

    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.

  9. True story... by PCM2 · · Score: 5, Funny

    True story ... I kinda forgot that Netflix was only charging me $7.99. I thought the price was ten bucks.

    My bad.

    --
    Breakfast served all day!
  10. So, net win for Netflix by WoodstockJeff · · Score: 3, Insightful

    No live sports, no live politics, no C-SPAN, CNN, MSNBC, FOX News. Definite advantage over cable!

  11. Re:Price Increase by tom17 · · Score: 2

    Say What again!

  12. Penny wise by Impy+the+Impiuos+Imp · · Score: 2

    I have had Netflix for almost 4 years. I don't see why $2/month is a big deal. Help me fix my $170/month cable TV + Internet + Showtime suite.

    --
    (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
  13. "Even Worse" by SuperKendall · · Score: 3, Insightful

    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
  14. Who cares? by kuzb · · Score: 2

    It's still pretty good value for what you're getting. I have no problem with this.

    --
    BeauHD. Worst editor since kdawson.