Netflix raises price of Blu-ray rentals...again! (April 09)
#26
DVD Talk Legend
Re: Netflix raises price of Blu-ray rentals...again! (April 09)
I got the email as well.
Let's see now... Netflix is claiming that the Blu-Ray catalogue is getting bigger, that they have to purchase more titles, while the number of Blu-Ray household is increasing, if not at RECORD pacing, then at a decent clip.
So why RAISE prices? It doesn't make sense one whit.
I went from 4 titles + Blu Ray, which was costing me $25 and is being raised to $29, to 3 titles + Blu Ray, which will now run me $21. In other words, their idiotic price increase has resulted in LESS revenue from a subscriber whose history with the company goes back to 1998. Instead of getting $4 more out of me, they are getting $4 less. And given my frequency of rental and turnover time per rental, they will end up with LESS reveune generated with much less of a blip in variable costs savings -- 1/4 less postage per month, but even if I rent 16 titles a month (which is generous) they "save" postage on 4 items, which at most is $1 at bulk rates, while "losing" $4 in subscription fees.
Watch what happens Netflix. This is a BONEHEADED move.
Let's see now... Netflix is claiming that the Blu-Ray catalogue is getting bigger, that they have to purchase more titles, while the number of Blu-Ray household is increasing, if not at RECORD pacing, then at a decent clip.
So why RAISE prices? It doesn't make sense one whit.
I went from 4 titles + Blu Ray, which was costing me $25 and is being raised to $29, to 3 titles + Blu Ray, which will now run me $21. In other words, their idiotic price increase has resulted in LESS revenue from a subscriber whose history with the company goes back to 1998. Instead of getting $4 more out of me, they are getting $4 less. And given my frequency of rental and turnover time per rental, they will end up with LESS reveune generated with much less of a blip in variable costs savings -- 1/4 less postage per month, but even if I rent 16 titles a month (which is generous) they "save" postage on 4 items, which at most is $1 at bulk rates, while "losing" $4 in subscription fees.
Watch what happens Netflix. This is a BONEHEADED move.
#27
Re: Netflix raises price of Blu-ray rentals...again! (April 09)
I already dropped to the two at a time plan.
If you have to high of a turnaround time, you get throttled by Netflix. The new throttle method is to allocate new releases to new customers while long term customers deal with "Short Wait" or "Long Wait." Since I don't rent as often due to this crap, I can deal with one less disc.
Besides, Family Video sells PV DVDs cheap and iNetVideo always has sales on Canadian Blu-ray Discs. These companies will earn my money, Netflix can just take whatever they can get from me.
If you have to high of a turnaround time, you get throttled by Netflix. The new throttle method is to allocate new releases to new customers while long term customers deal with "Short Wait" or "Long Wait." Since I don't rent as often due to this crap, I can deal with one less disc.
Besides, Family Video sells PV DVDs cheap and iNetVideo always has sales on Canadian Blu-ray Discs. These companies will earn my money, Netflix can just take whatever they can get from me.
#28
DVD Talk Legend
Re: Netflix raises price of Blu-ray rentals...again! (April 09)
Be sure and wait before you change your account and lower it. Depending on you billing statement, it may be May before you get billed the extra amount. I plan on sending an unhappy email to Netflix as I hope many plan to do. Many if they hear from enough unhappy customers, they may reconsider or lower their fee. Bumping it another buck per plan would have seemed maybe a little more reasonable but I personally think there should be no increases for BD at all.
As someone else pointed out, new BDs cost the same as new dvds did a few years ago. Nowadays they are paying way less for standard dvds, new and old. Why not pass along those savings to paying for the BDs?
As someone else pointed out, new BDs cost the same as new dvds did a few years ago. Nowadays they are paying way less for standard dvds, new and old. Why not pass along those savings to paying for the BDs?
#29
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
It's a real shame that despite record profits, Netflix feels that that have to tack on even more fees. Wait times are not going to decrease, and we are not going to see more titles. They won't even go out and get copies of released catalog titles, like Ronin. I have heard how great this movie is and want to see it for the first time on Blu, but no Blu-ray Ronin on Netflix.
I for one am done with Netflix and after building a 100+ Blu-ray library, I am on the verge of abandoning Blu-ray all together. The cost of movies and lack of reasonable rental options is just ridiculous. The Blu-ray Disc Association should have been working with rental retailers from the start to ensure a strong rental outlet, but instead all the greedy giants who comprise the BDA wanted to make consumers spend $30-40 to buy the movies they watch. While have prices have dropped notably over the past year, they are still too high. Netflix was the great equalizer and now they have gone and ruined it. Today it's $3, but rest assured that if enough members don't quit, next time around it will be $5 and there will be more price increases, especially with Blockbuster tanking. Oh well maybe enough people will quit and go back to Blockbuster to keep them afloat and keep the competition in the rental business alive.
I for one am done with Netflix and after building a 100+ Blu-ray library, I am on the verge of abandoning Blu-ray all together. The cost of movies and lack of reasonable rental options is just ridiculous. The Blu-ray Disc Association should have been working with rental retailers from the start to ensure a strong rental outlet, but instead all the greedy giants who comprise the BDA wanted to make consumers spend $30-40 to buy the movies they watch. While have prices have dropped notably over the past year, they are still too high. Netflix was the great equalizer and now they have gone and ruined it. Today it's $3, but rest assured that if enough members don't quit, next time around it will be $5 and there will be more price increases, especially with Blockbuster tanking. Oh well maybe enough people will quit and go back to Blockbuster to keep them afloat and keep the competition in the rental business alive.
Last edited by MoviePhanatic00; 03-30-09 at 04:20 PM.
#30
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
I'll be dropping down to 2 at a time - unlimited.
#32
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
Oddly enough, that immediately stopped happening to me after the original $1 increase. Go figure.
#33
DVD Talk Gold Edition
Re: Netflix raises price of Blu-ray rentals...again! (April 09)
I think this is probably worth it. I know people keep claiming BR prices will come down. But, I don't see major changes on BR pricing... just the same sale deal here or there that always existed.
Meanwhile, even at this increased prices... these are a bargain. Although currently between rental memberships, I'd probably be using BBO over Netflix until pricing parity returned. $1 is not bad. But $4-5 for the plans I'd like is a enough to make me switch over.
Meanwhile, even at this increased prices... these are a bargain. Although currently between rental memberships, I'd probably be using BBO over Netflix until pricing parity returned. $1 is not bad. But $4-5 for the plans I'd like is a enough to make me switch over.
#34
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
If you look at the graduated plan I actually think this makes sense. They felt the need to charge Blu-ray users extra since the discs cost extra. Most people around here seemed okay with since it was a "fair share" price increase.
So now the assumption is that Netflix, in a recognized time of economic downturn, is "arbitrarily" charging customers more? I seriously doubt this. I'd bet that their analysis shows that most Blu-ray users are only renting Blu-ray titles. As a result, the fee increase became disproportional again and negated the original intent. I'm not saying the scale couldn't use some adjustment, but it appears they are taking steps necessary to address Blu-ray supply and demand.
So now the assumption is that Netflix, in a recognized time of economic downturn, is "arbitrarily" charging customers more? I seriously doubt this. I'd bet that their analysis shows that most Blu-ray users are only renting Blu-ray titles. As a result, the fee increase became disproportional again and negated the original intent. I'm not saying the scale couldn't use some adjustment, but it appears they are taking steps necessary to address Blu-ray supply and demand.
#36
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
I'm in the same boat. Been a member since either '99 or 2000. I'm at the 4 out at a time plan for $16.99 due to grandfathering in. I don't think I'm going to change b/c I still think it is a great value. I really can't complain. Quite a few of you are forgetting that Netflix actually dropped prices when BB started to complete with them in the same market. I was paying $21 in the past, then it got dropped down to $17. So, essentially, I'm back to where I was before the price drop. As long as they speed up wait times, I'm not going to be too vocal about it. If they don't speed up with this additional revenue, I'll complain.
And I agree with the theories that the cost increases haven't been calculated to their actual costs, but to what they think will get them the most benefit. They know they're going to get cancellations and reductions, so they figure out that loss versus the increased-cost gain. Could be that Blu-ray subscribers tend to be higher turnaround and thus more costly for them to serve than others. Meanwhile, they don't increase supply at all but availability improves as people drop Blu-ray from their plan, giving the impression that they've devoted resources to it.
#37
Re: Netflix raises price of Blu-ray rentals...again! (April 09)
I just buy the movies now. I used to rent, but even at $17+ a month, I could have been buying a Blu-ray movie once a month, at the least. Figure around $200+ a year, I'd rather spend it on Amazon Buy 10 Save $100 sales or something similar.
Netflix probably has too many customers for the amount of Blu-ray discs they have (and maybe even DVD movies in general, eventually). They are thinning the herd.
Netflix probably has too many customers for the amount of Blu-ray discs they have (and maybe even DVD movies in general, eventually). They are thinning the herd.
#38
Re: Netflix raises price of Blu-ray rentals...again! (April 09)
Bummer. I still think Netflix is a good deal though. I'm going to keep the same plan (2-out unlimited w/ Blu access).
#39
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
i canceled my account, one dollar more was acceptable 4 dollars more is being greedy.
the prices of blu ray media are going down every month.
just look at recent releases, a 3disc marley in me with bluray/dvd/and digital copy can be bought at best buy tomorrow day of release for 24.99 last week you could get bolt with bluray/dvd/digital copy for 24.99 as well. qauntum of solace was availble for 24.99 and catalog titles are had reasonably as well.
this is bad bussiness, for a company that posted a 48 percent increase in sales last year.
thanks for saving me 16.99 plus tax a month now.
the prices of blu ray media are going down every month.
just look at recent releases, a 3disc marley in me with bluray/dvd/and digital copy can be bought at best buy tomorrow day of release for 24.99 last week you could get bolt with bluray/dvd/digital copy for 24.99 as well. qauntum of solace was availble for 24.99 and catalog titles are had reasonably as well.
this is bad bussiness, for a company that posted a 48 percent increase in sales last year.
thanks for saving me 16.99 plus tax a month now.
#40
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
Like many of you I'm sure, I can afford the extra four dollars, but this pisses me off seeing as how I rarely get the BDs I want and mainly get regular dvds.
So, bye-bye BD access. I may even bump down to 2-out because this has reminded me that I've been watching less and less Netflix (mainly, my red envelopes just lie around for weeks on end).
Wouldn't it be more reasonable if they gave us the option of a surcharge per each BD rented? Like 40 cents or something. I find that very reasonable.
That amounts to something like $4 (extra) for 10 BD rentals, and people who anticipate needing more than that can fall back on their plan's unlimited BD access option.
Fair?
So, bye-bye BD access. I may even bump down to 2-out because this has reminded me that I've been watching less and less Netflix (mainly, my red envelopes just lie around for weeks on end).
Wouldn't it be more reasonable if they gave us the option of a surcharge per each BD rented? Like 40 cents or something. I find that very reasonable.
That amounts to something like $4 (extra) for 10 BD rentals, and people who anticipate needing more than that can fall back on their plan's unlimited BD access option.
Fair?
#41
Re: Netflix raises price of Blu-ray rentals...again! (April 09)
looks like a perfect time for me to become a first time member at Netflix since everyone is dropping theirs. I will have all the BDs avail at my disposal BWAHAHAHA! j/k
#42
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
Netflix to Raise Blu-ray Prices, Stock Surges
http://www.homemediamagazine.com/net...k-surges-15170
http://www.homemediamagazine.com/net...k-surges-15170
"We don't expect this surcharge change to impact usage or membership dramatically, given that there is not really anywhere else for people to go since Blockbuster raised prices on heavy users,” Pachter said in a note. “Thus, any revenue increase should drop to the bottom line."
A point not lost on investors, who heralded the price hikes sending Netflix stock up nearly 6% to close at $42.03 per share.
A point not lost on investors, who heralded the price hikes sending Netflix stock up nearly 6% to close at $42.03 per share.
#44
DVD Talk Godfather
Re: Netflix raises price of Blu-ray rentals...again! (April 09)
Unfortunately that's the only way they'll get the message, if people cancel in droves. I still have about 10 days on my month so I'm going to squeeze in a couple more and then cancel.
#46
DVD Talk Legend
Re: Netflix raises price of Blu-ray rentals...again! (April 09)
Those of you thinking BB Online will be a good alternative need to know that if you thought the Blu Ray wait times at Netflix were bad, you ain't seen nothing yet...
#47
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
The only reason why I've been keeping Netflix is for the streaming so I'm on the $8.99 plan (plus $2 now for Blu-Ray). I've been doing a three-month $9.99 3-at-a-time plan (because they begged to get me back) at BB. Once that's through I'll probably keep lower plans at both and more than meet my viewing needs.
#48
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
All of you dropping entirely emphasize why they are increasing the BR prices so much. If you really wanted to get the point across you'd just drop the BR component and keep the regular service. Otherwise they'll likely just chalk it up to other economic factors.
#49
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
As an added commentary on how stupid these companies can be:
Take this from Blockbuster:
* 1-out 2 DVDs By Mail - $3.99 per month plus $1.99 rentals upon in-store exchange.
So 4 rentals = $3.99 + (2 x $1.99) = $7.97
OR Total Access
* 1-out (2 DVD per month limit) with two free in-store rentals for $9.99
So 4 rentals = $9.99
Wow, they really think consumers are stupid.
Take this from Blockbuster:
* 1-out 2 DVDs By Mail - $3.99 per month plus $1.99 rentals upon in-store exchange.
So 4 rentals = $3.99 + (2 x $1.99) = $7.97
OR Total Access
* 1-out (2 DVD per month limit) with two free in-store rentals for $9.99
So 4 rentals = $9.99
Wow, they really think consumers are stupid.
#50
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Re: Netflix raises price of Blu-ray rentals...again! (April 09)
Sorry for quoting myself, but the subscriber model is an interesting one. With Netflix, the most loyal and active customers are probably the most costly. With Amazon, the most loyal and active customers are probably spending a lot of money. However, if they're Prime members and buy three $5 items a day, they become expensive. I wonder what kind of back-room conversations Netflix had about their customer retention.