Netflix goes from $7.99 a month to $16...WHAT???

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Originally posted by ecgordon:
No one is saying anything about the cost of producing the content. It's how much the studios are now charging Netflix for the rights to the content as opposed to how much they were charging when they began the streaming process.

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That's why I'm asking. Is the increase in the rights justified by a similar increase in the cost of production? If not then it's price gouging.

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From Wired.
http://www.wired.com/epicenter/2011/07/netflix-price-hike-anger/

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It’s not as if Netflix was struggling — profits were up 88 percent in the first quarter and, at the time of writing, the stock is up 66 percent in 2011. It’s also one of those companies whose customers really seem to like it. With its DVD price hike, Netflix seems to have wiped out a bunch of good will in one fell swoop.

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This isn't the first time they've played bait n switch, or lied, either.
http://paidcontent.org/article/419-netflix-enrages-subscribers-by-limi
ting-dvd-queue/
That one was a big middle finger for folks who use a PS3 or Xbox instead of a PC, mind you.

http://en.wikipedia.org/wiki/Netflix#.22Throttling.22_2
And of course, that how-dare-you-actually-USE-the-service kind of attitude, that was the deal breaker for me to begin with, if I pay you money for a service, and you start screaming like a damned soul when I USE it, then taking action against me for doing so...
You're a fekkin thief, and don't even have the decency to be honest about it.

-Frem

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Originally posted by Zeek:

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Originally posted by ecgordon:
No one is saying anything about the cost of producing the content. It's how much the studios are now charging Netflix for the rights to the content as opposed to how much they were charging when they began the streaming process.

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That's why I'm asking. Is the increase in the rights justified by a similar increase in the cost of production? If not then it's price gouging.

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There hasn't been a huge swell in production cost, no. It goes up gradually, but nothing drastic. So, if it's gouging, it's coming from the studios.

But the flip side to that is, the rights for streaming were vastly undervalued. They're probably asking too much now, granted. But a price increase of some degree is justified just because they were not getting what it was worth to begin with.

I'm thinking there has to be some middle ground, but I don't think the studios want to find it. They're rather kill Netflix anyway, and have you pay them directly. Which will likely happen next - Sony and Disney are already looking at setting up their own proprietary streaming services. The others will follow suit, especially since the studios invested in Hulu are trying to sell of their interest in that now.

"I thoroughly disapprove of duels. If a man should challenge me, I would take him kindly and forgivingly by the hand and lead him to a quiet place and kill him."

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Originally posted by Fremdfirma:

From Wired....

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Rather telling that they don't mention the higher costs the company is facing. So many sites more interested in whipping up the excitable than looking at the whole picture.

"I thoroughly disapprove of duels. If a man should challenge me, I would take him kindly and forgivingly by the hand and lead him to a quiet place and kill him."

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Originally posted by Storymark:

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Originally posted by Zeek:

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Originally posted by ecgordon:
No one is saying anything about the cost of producing the content. It's how much the studios are now charging Netflix for the rights to the content as opposed to how much they were charging when they began the streaming process.

---

That's why I'm asking. Is the increase in the rights justified by a similar increase in the cost of production? If not then it's price gouging.

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There hasn't been a huge swell in production cost, no. It goes up gradually, but nothing drastic.

But in this case, the rights for streaming were vastly undervalued. They're probably asking too much now, granted. But a price increase of some degree is justified just because they were not getting what it was worth to begin with.

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Sounds like a good strategy. Let Netflix build up a customer base and then move in for the kill. They either have to piss off their customers by removing the feature or eat the cost.

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Yeah, more or less (though I edited and expanded my prior comment).

Netflix proved to them that there was an audience for streaming, something they were reluctant to embrace before. Now that they know there's value in it, they're going to either ride Netflix for all they can, or drive it into the ground to soak up that audience with no middle-man.

"I thoroughly disapprove of duels. If a man should challenge me, I would take him kindly and forgivingly by the hand and lead him to a quiet place and kill him."

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Netflix swears up and down that higher costs of the new studio contracts for streaming video have nothing to do with the price change. Netflix was not able to fulfill the requests for old-fashion DVDs at a price of $2.00 per month. DVDs are a separate business unit from internet streaming video and DVDs must make its own profit. - http://pogue.blogs.nytimes.com/2011/07/14/why-netflix-raised-its-price
s/

“Pay $8 for unlimited streaming—and get one DVD for $2 more!” would have put the DVD side of Netflix out of business.

The Joss Whedon script for "Serenity," where Wash lives, is
Serenity-190pages.pdf at www.mediafire.com/two

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Of course. Because companies never spin with press releases. I'll take math over PR until I see something more convincing.

I'm sure there are several factors at play here, but the licensing fees they're paying going up by hundreds of millions isn't as insignificant as they want to make it seem.


You might notice that even the author of the article says their excuse doesn't add up. Did you read past the first couple paragraphs?

I do agree with the bit at the end. The increase equates to the cost of a latte. People need to unbunch their panties, it's hardly the end of the world.

"I thoroughly disapprove of duels. If a man should challenge me, I would take him kindly and forgivingly by the hand and lead him to a quiet place and kill him."

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Originally posted by Kwicko:
Instead, when I want movies, I go to my local indy-vid place and rent them. They have an amazing documentary section, and knowledgable staff who get to know you and your preferences and make recommendations based on that.

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That's what I did when I lived in Tallahassee, but there ain't shit for video stores around where I live now, so I went with Netflix.

I'd like to applaud my fellow browncoats here for a nice, civil and rational discussion of the news as opposed to the baby-want-another-bottle filth being spewed out here: http://blog.netflix.com/2011/07/netflix-introduces-new-plans-and.html

It was a great deal while it lasted and I will continue to enjoy it for a slightly higher price. I get the 1 DVD + streaming option and that's good enough for me. Sure the streaming selection could be better, but that's why I get the DVD and still pay for cable (although if it weren't for sports, I'd probably drop that last one).

-----------------------------
I pray for one last landing,
on the globe that gave me birth.
Let me rest my eyes on the fleecy skies
and the cool, green hills of Earth.

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