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Netflix Raises Unlimited Plan Prices And Offers Stream-only Service




Netflix Inc said it will offer its first unlimited streaming-only subscription plan in the United States for $7.99 a month, and raise prices of its popular unlimited streaming and unlimited DVD plans by a dollar -- eventually shifting away from its mail business. Netflix shares rose 7 percent to $184.71 in morning trading following the announcement. The move is part of Netflix's push to phase out its DVD-by- mail business, said Gabelli & Company analyst Brett Harriss. "For a while, the goal of the company was to change its business model from DVDs to streaming because it recognizes the DVD has a limited shelf life at this time and streaming has higher margins," Harriss said. The company said on Monday the plan will take effect immediately for new subscribers and in January for current members. Netflix, which gained success as a DVD rent-by-mail service, ended the third quarter with 16.9 million members in the United States and Canada. It debuted its first streaming-only service in Canada in September. Its streaming video library is still tiny compared with its DVD by-mail selection and Harriss said the company would have to continue spending on expensive content deals to boost its digital offerings.


For links and more stories visit the new Streaming Media section at HomeToys.com
 

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Gotta say, I'm pretty disappointed with Netflix for this one...


Call me a whiner if you want, but I don't like the pricing of the streaming-only plan. If it was $6.99 or $5.99, I'd switch to streaming only in a heartbeat. The fact of the matter though is that to save $1 (from the current price, $2 from the new price), you lose a large amount of Netflix's overall library to select from. I'm pointing my finger mostly at TV shows, but it applies across the board that Netflix still is lacking in the streaming department. I'm not saying they're not strong, even excellent. But to save $1 from what I'm currently paying? Not worth it.


I think in order to make this work it should drop an extra $1-2. Otherwise it seems like the $10 1-disc plan is still the way to go (at least for me). Which reminds me, I'm not opposed to the $1 increase on the 1-disc plan. Physical media has certain overhead when compared to streaming. (And it works the opposite way too, but to a lesser extent)


Another nice feature would be to add a "per-disc" fee to the streaming account, such that you could pay $1.50 for a disc that isn't streamable yet and then return it before you are able to spend another $1.50 (or however much) on renting another disc.


Anyone else feel the same?
 

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I'm never happy with price increases but I like Netflix and use it a lot and don't feel the streaming service is totally prime time yet--not enough that I would want to get rid of the disk at home service. I have 3 at home with Blu Ray option and will keep it as long as they continue to send the Blu Ray discs I want in a timely manner. Hopefully streaming will continue to evolve enough so the mail service will no longer be necessary--but I doubt that will be anytime soon. Especially when compared to Blu Ray.
 

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They pulled Farscape from streaming last week. I was in the middle of watching the series. What else have they pulled/are they going to pull from streaming? Why would I want to switch to streaming-only under these conditions?


Sad to see options for renting discs slowly drying up. I rent so I don't have to buy every disc I want to see. Streaming is no where near reaching the video and audio quality of Blu-ray, and with the limitations of bandwidth on the Internet, I doubt it will ever match Blu-ray.
 

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Everyone would be cool with streaming only, even prefer it, if they had bluray quality video and sound. Until they do that many of us will continue with bluray. Currently streaming is only for DVD or TV shows that weren't ever filmed in HD. I guess now that they have some HD feeds to PS3 that helps, but we're going to pay for HD audio/video or we won't pay at all.
 

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I have no problem with the current streaming availability, but the least they could do is increase the quality. Hell, the Starz Play titles are still being shown in 4:3 when most of the ones they offer are readily available in HD.
 

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I'm perfectly happy with my 1-out BD with streaming. We get roughly 5 movies a month, plus countless others through streaming. Show me another place I can get that for $11/month.


Would they get more customers if streaming-only was $5/month? Probably. Is $8/month too much for streaming-only? No.
 

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Quote:
Originally Posted by msmCutter /forum/post/19530083

Everyone would be cool with streaming only, even prefer it, if they had bluray quality video and sound. Until they do that many of us will continue with bluray. Currently streaming is only for DVD or TV shows that weren't ever filmed in HD. I guess now that they have some HD feeds to PS3 that helps, but we're going to pay for HD audio/video or we won't pay at all.

Of course this assumes everybody who uses Netflix has a reliable high speed internet connection. Reality is not everyone does (for a variety of reasons).
 

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Quote:
Originally Posted by In2Photos /forum/post/19529865


Not happy at all about the $3 increase for 3 discs with BD access.
I might drop back to 2 after this month.

I have to agree, and will probably do the same. A 17.5% price increase, is just way to much. I already dropped blu-ray access when they jacked the price of that up.
 

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..not to pick on netflix but these service companies have lost their minds....I like technology...I've invested in more than my share over the years but I've had just about enough with bottomless monthly "fees".....
 

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Funny Thing:


Last week I canceled my Netflix completely. The reason: Over the past month I have compared what's available from netflix (streamed or mail) against newer releases being available from Redbox.


I found more and newer New BluRay releases were available sooner from Redbox than from Netflix
 

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Quote:
Originally Posted by msmCutter /forum/post/19530158


It's a fine price provided they have A) content and B) quality. Presently, they're lacking both.

It's not perfect, I'll wholeheartedly agree with that...


But, the truth of the matter is that it's getting better. As long as it continues to do that, and I can continue to find shows that I want to catch up on via the streaming (shows like Eureka, or Battlestar Galactica, or even older movies like The Sting & The Godfather that my wife hasn't seen yet), I'm ok with it.


And the PS3 Netflix streaming is pretty good, I have to say...Again, not GREAT, but certainly not as bad as it could be.


I will admit that I used to torrent TV shows until I found Netflix. Now, being legit and finding a lot of the shows I want on the Watch Instantly that I can enjoy? I'm satisfied with that.
 

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I just switched to the "streaming only" option. Have had good to great results with it via my PS3, and as Netflix continues to ramp up its instant titles, HD and surround sound output, it's just going to be cheaper and easier to use the streaming option. Granted, there may be isolated titles that aren't available via streaming, but that's what the internet is for.

 

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Went from two discs with Blu-ray and streaming down to one disc with Blu-ray and streaming. My main gripe is that there are certain new releases that are in my queue that have been "long wait" now for months.


I've been trying to watch the final season of Lost since it aired (stupid me should have just DVR'd the episodes when they aired), and to this day I still cant get the first disc of season 6, and it's not available to stream.


Netflix is a great service, but raising prices when they don't have enough discs to satisfy demand is a colossal screwup.


So because of the price increase, they will now be getting less money from me.
 

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Streaming is fine for smaller screens but the current quality simply won't cut it on our 12 wide screen. I will be dropping the 3 at a time plan to a single disk and will up my use of redbox now that they have blurays available. I was very disappointed to see the price increase. Remember that the streaming is limited to six devices and in our house that leaves us about 5 devices short when you count everyones iphones and bluray players, not to mention laptops and netbooks....
 

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First it was $1 more for Bluray, then $4 more. Now a $1 per disc increase(3 for me).


Now my decision is whether to step down to 1 or 2 discs at a time.


I wonder how many others are contemplating this? Though, it's ultimately netflix's goal to eliminate disc rental, perhaps they are pushing for it too soon?


Fact Remains, Streaming =/= Discs. When I can get Bluray quality sound/picture/features/chapters/etc from streaming without comcast throttling me for watching it, along with a wide selection of more current content, then we'll talk.


One thing is for certain, share holders are excited. And if Blockbuster ever goes completely under, expect prices to go higher.
 

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Quote:
Originally Posted by davidcrowe /forum/post/19531010


Streaming is fine for smaller screens but the current quality simply won't cut it on our 12 wide screen. I will be dropping the 3 at a time plan to a single disk and will up my use of redbox now that they have blurays available. I was very disappointed to see the price increase. Remember that the streaming is limited to six devices and in our house that leaves us about 5 devices short when you count everyones iphones and bluray players, not to mention laptops and netbooks....

I'm sure netflix would be very happy if you had another account for Streaming Only. Margins are better.
 

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I was thinking about streaming only but now Charter just imposed a bandwith cap on all of us users so that idea just flew out the windows
. I am thinking about just dropping it all together and just do Redbox rentals and the occasional trip to Family Video Store. I wonder what will happen to the Netflix streaming plan if all of the Providers start imposing caps?
 
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