My Take on Netflix Price Changes
As a Netflix subscriber, with the current $9.99 DVD-streaming combo option that will cease to exist come Sept. 1 to current subscribers, I thought I’ll weigh in on what’s going on.
As most people are aware, Netflix made a streaming only option for 7.99, while increasing to 9.99 for having unlimited streaming and DVDs (1 at a time), last November. Going from 8.99 to 9.99 wasn’t a big deal, I think most people understood as it costs money to send out DVDs (you know, postage). Now, with Netflix set to separate their two services, having the already existing 7.99 streaming only, and adding a 7.99 DVD-only, meaning to have both, you add those together to get the $15.98/mo, which is what current $9.99 subscribers will be paying, starting Sept 1, unless they decide one way or another, or as some people (stupidly) are threatening to do, canceling altogether.
I find canceling to be stupid, as Netflix is by far the best paid streaming option out there. Right now, even the paid Hulu Plus has ads, while Netflix doesn’t. The streaming limits of Netflix is why people liked the DVD option. All the other streaming sites have limitations to what they offer, because it’s all a matter of what licensing rights they can get. It’s not Netflix’s fault that Warner Bros. doesn’t want Netflix to even had the DVDs available until 30 days after release date (I believe same goes with Redbox). It’s not Netflix’s fault that HBO and Showtime don’t want their shows available to stream, even after a season has been released to DVD/Blu-Ray and is available to rent in that form. Though, in our eyes, being able to rent the DVD or Blu-Ray out should be seen as the same as streaming, when it comes to studios, they don’t see it that way.
From their fear that streaming is easier to rip (though, DVDs are easy to rip, but whatever), or they think people won’t subscribe to their premium network if they can just stream it, about eight months after the season ended (I’m using True Blood‘s releases as a guide for that number). Well, same can be said if they can rent it as well, but, whatever.
None of these are Netflix’s fault. And, now, their partnership with Starz could be lessened when the contract is up (I believe in January). Right now, current shows from Starz as a 90-day wait period, as Starz is hoping some people would subscribe for the course of a season to what a show now, versus waiting. If this experience shows that people were okay to wait, it wouldn’t surprise me that Starz doesn’t renew any deal with Netflix.
But, if Netflix can phase the option for DVDs out completely (as it is their goal), then funds could potentially go towards purchasing more (or even better) rights to streaming shows and movies. Of course, don’t expect HBO, as they have their HBO Go service, which is only available to subscribers (and not even all, as I know Time Warner customers don’t get it). Would it be nice to allow people who don’t want to pay an arm and a leg for digital cable (which, I think is at least required to even get premiums, so set-top box fees on top of minimum digital cable, it’s just ridiculous).
Worse yet, ISPs aren’t happy with Netflix, which accounts for a good chunk of web traffic in peak hours now. That’s why ISPs experimented and implemented bandwidth caps. This is one reason why we need government regulations to prevent ISPs from jacking up prices while speeds see no improvement. If we can get some good investments into fiber optics in more places, then cable companies will have more competitors, and thus, will have to have lower prices just to compete.
But I’m getting into something else, so back to Netflix. I myself like the DVD option, but like others, I only rent out a DVD about once a week (I work full time, I hardly have time to stream with Netflix). Though I get why Netflix is doing this (phase out DVDs by pushing people to go streaming), I think they could go about it better. If someone makes use of the unlimited DVDs on top of the streaming, then they should essentially pay for the two options (If they squeeze 2 DVDs in a week, that $7.99 a month plan is cheaper than buying from Pay-Per-View (which is about $4 a movie), cheaper than renting from iTunes (again, $4), renting from any Blockbuster or video store that has somehow managed to stay in business (and those require going out and using gas, plus risk of late-fees which apparently plagued people who rented a movie without considering if they had time to watch it that night or couldn’t get it returned in time), and is about that same as the $1 rentals of Redbox ($1 a day, that is, so if you have the movie in your possession for two days before you get to return it, it could add up.
But, if you’re like me, you don’t rent but no more than 4 DVDs a month from Netflix, so, I think it’ll be fair to keep a 9.99 plan with a DVD limit of, say, 2 a month. I think that would be fair.
So, come September 1st, would I drop my DVD side and go streaming only? I don’t know. There is a large streaming library, but, new releases are DVD only and come with wait times as everyone wants to see a new movie. Right now, my DVD Queue has some TV shows not available to stream and aren’t syndicated on any network (I’m watching Night Court now (which I’ve had since Thursday), actually, so I can send it off tomorrow and get a new one Friday (I Am Number Four is next on my list).
I have until September to ponder over it, but for the extra 8 bucks, I would need to squeeze in two a week to justify the increase, which could be possible when hours are cut in the fall (I got Netflix when I was unemployed, and used a lot of it when I got a part time job, but full time, I can afford it better but not using it as much, interesting huh?).


