UPDATE: I found five TV and movie services that are cheaper than Netflix.
PREVIOUSLY: Shocker! Netflix is raising its prices by as much as 60%. A whopping 80% of Netflix customers will be affected by the price hike, according to an LA Times story, which says:
The changes take effect immediately for new customers and in September for existing ones.
Basically, Netflix is separating it’s streaming and DVD-in-the-mail plans. Before, you could get 1 DVD at a time and unlimited streaming for $9.99 a month. Now, each part of that plan costs $7.99, adding up to $15.98 for both if you want to keep the same service you had previously. That is a 60% price increase. You can read more about the changes on the Netflix blog.
From a business standpoint, I can see how this makes
financial sense for Netflix, which years ago predicted it’s future was in streaming movies. Now that the mail and streaming plans are separate, Netflix can focus on its target customers and price plans more effectively. Plus, with the drastic price increase, for every 125 people who bump up to the $15.98 plan, Netflix can have 1,000 customers drop from the $9.99/mo plan to a $7.99/mo plan and still make the same amount of money.
I am a Netflix customer and I never got a notice that my bill would be increasing, though it could have gone to my husband’s email. Before the massive price increase, I was already conflicted about paying Netflix $10 a month for movies. Now it seems like a pretty crappy deal. We watch two DVDs a month and stream many more. Maybe it’s time to go to a streaming-only subscription?!
What do you think of the price hike? What will you do about your subscription?