Sage and other TV viewing concepts: Netflix price hike

[tvmaster2]

As much as I hope the new Google/Sage team do something good, here's what the leader in the streaming industry is doing....hiking prices 60%, just a year after their stock went from $17 to $290. Do they really need the money with a stock price like that? If so, their business model must be a mess.
If Google/Sage wants to play in this pool, Netflix and rising costs/bandwidth use charges may have soured the waters for people by the time the new product comes out.
OTOH, If people are willing to pay $17 month for lousy, stuttering, stereo TV (as opposed to 5.1), then I have given them too much credit.
Netflix price hike has made it easier for Sage/Google to appear at a lower price point if they are smart.

http://www.cbsnews.com/8301-501465_1...06-501465.html

[gplasky]

Originally Posted by tvmaster2

As much as I hope the new Google/Sage team do something good, here's what the leader in the streaming industry is doing....hiking prices 60%, just a year after their stock went from $17 to $290. Do they really need the money with a stock price like that? If so, their business model must be a mess.
If Google/Sage wants to play in this pool, Netflix and rising costs/bandwidth use charges may have soured the waters for people by the time the new product comes out.
OTOH, If people are willing to pay $17 month for lousy, stuttering, stereo TV (as opposed to 5.1), then I have given them too much credit.
Netflix price hike has made it easier for Sage/Google to appear at a lower price point if they are smart.

http://www.cbsnews.com/8301-501465_1...06-501465.html

That's a combined DVD & Streaming price per month. If all you want is unlimited streaming it's $7.99 a month. Or for unlimited DVD-1 out at a time-it's $7.99 a month. Combined it's $15. I just added Blue Ray to my plan and that price change begins in Sept. They basically split up the plan between streaming and DVD. Seems just s streaming option is becoming more popular. And this is probably driven by the media companies because they want to get paid whether they supply the DVD media or the streaming media. Prior to this, if you had a DVD plan you got the streaming for free. It's unrealistic to think that was going to last forever.

Gerry

[stanger89]

Originally Posted by tvmaster2

As much as I hope the new Google/Sage team do something good, here's what the leader in the streaming industry is doing....hiking prices 60%, just a year after their stock went from $17 to $290. Do they really need the money with a stock price like that?

Stock prices do not mean money on hand, or revenue, they're essentially an indication of the market's value of the company.

OTOH, If people are willing to pay $17 month for lousy, stuttering, stereo TV (as opposed to 5.1), then I have given them too much credit.
Netflix price hike has made it easier for Sage/Google to appear at a lower price point if they are smart.

http://www.cbsnews.com/8301-501465_1...06-501465.html

As Gerry mentioned, they're not really raising their prices. I checked my account and it looks like nothing's changed. It's still going to be ~$28/mo for me, but that's with a 3 at a time plan with Blu-ray and unlimited streaming. Unlimited streaming alone is still just $7.99. What I think did change (and I don't know their plans that well) is they've eliminated the $9.99/mo 1 at a time, unlimited DVD, unlimited Streaming plan. If you were on that, now you're going to have to pay $16/mo.

[wrems]

Netflix is hardly strapped for cash:

http://www.cinemablend.com/televisio...ive-33408.html

Plus, they're losing content. So they're jacking prices and reducing value... That's surely a winning strategy.

[aflat]

Originally Posted by stanger89

Stock prices do not mean money on hand, or revenue, they're essentially an indication of the market's value of the company.



As Gerry mentioned, they're not really raising their prices. I checked my account and it looks like nothing's changed. It's still going to be ~$28/mo for me, but that's with a 3 at a time plan with Blu-ray and unlimited streaming. Unlimited streaming alone is still just $7.99. What I think did change (and I don't know their plans that well) is they've eliminated the $9.99/mo 1 at a time, unlimited DVD, unlimited Streaming plan. If you were on that, now you're going to have to pay $16/mo.

They also changed the 2 at a time with unlimited streaming, it went up $3.

[panteragstk]

Originally Posted by wrems

Netflix is hardly strapped for cash:

http://www.cinemablend.com/televisio...ive-33408.html

Plus, they're losing content. So they're jacking prices and reducing value... That's surely a winning strategy.

They're reducing content because of contract negotiations they are currently in. Once those are finished we should see more content. If the studios are asking for more money then the price hike makes sense. From what I've read the studio's had no clue how popular streaming would actually become, now they want to get paid for it.

OTOH, if netflix has less content and charges more and the situation doesn't change, then yes I can see the complaint being very valid. If studios didn't make negotiations so difficult (see fox on time warner, amchd, g4 on directv) then we wouldn't have this problem.

[tvmaster2]

Originally Posted by gplasky

That's a combined DVD & Streaming price per month. If all you want is unlimited streaming it's $7.99 a month. Or for unlimited DVD-1 out at a time-it's $7.99 a month. Combined it's $15. I just added Blue Ray to my plan and that price change begins in Sept. They basically split up the plan between streaming and DVD. Seems just s streaming option is becoming more popular. And this is probably driven by the media companies because they want to get paid whether they supply the DVD media or the streaming media. Prior to this, if you had a DVD plan you got the streaming for free. It's unrealistic to think that was going to last forever.

Gerry

In January of this year, my combined bill was $7.99 per month. They raised it $2.00 at the end of January, and that's when I quit.
Now, eight months later - a 60% hike for what was $7.99 at years beginning.
Since that was the business model they acquired all of their user base with, then yes, I as one of those people would expect it to last for quite some time. Apparently, people have far more money than they complain about not having when talking recession, etc.

[tvmaster2]

Originally Posted by wrems

Netflix is hardly strapped for cash:

http://www.cinemablend.com/televisio...ive-33408.html

Plus, they're losing content. So they're jacking prices and reducing value... That's surely a winning strategy.

not to mention their entrance into the South American market.... their share prices just keep on rising. When they deliver 5.1, I MAY consider them again.

[tvmaster2]

Originally Posted by panteragstk

They're reducing content because of contract negotiations they are currently in. Once those are finished we should see more content. If the studios are asking for more money then the price hike makes sense. From what I've read the studio's had no clue how popular streaming would actually become, now they want to get paid for it.

OTOH, if netflix has less content and charges more and the situation doesn't change, then yes I can see the complaint being very valid. If studios didn't make negotiations so difficult (see fox on time warner, amchd, g4 on directv) then we wouldn't have this problem.

how many of the 'studios' have investments in cable companies who will likely begin charging for bandwidth overages due to streaming limits? hmmm... Nonetheless, it will be interesting to see what Google/Sage and their new product will have to offer against Netflix, etc., and how it will be priced. Let's face it: SageTV was a marvelously priced product for what you got in return. Netflix, on the other hand (in my opinion) is WAY too expensive for what it is.

[panteragstk]

Originally Posted by tvmaster2

how many of the 'studios' have invenstments in cable companies who will likely begin charging for bandwidth overages due to streaming limits? hmmm...

Exactly. It isn't right. The fact that Comcast was able to buy NBC/Universal was the beginning of the end. The NBC/Universal side wants more money for the streamed content, and the Comcast side wants more money for using it's bandwidth to stream it's own network over the internet? Talk about a win win for Comcast.

[reggie14]

Originally Posted by tvmaster2

As much as I hope the new Google/Sage team do something good, here's what the leader in the streaming industry is doing....hiking prices 60%, just a year after their stock went from $17 to $290. Do they really need the money with a stock price like that? If so, their business model must be a mess.

How is the stock price relevant? That's largely driven by Netflix's pretty incredible growth rate over the last few years.

Netflix is quite likely going to need more more to renew the licensing deals they have. Hopefully they'll try to get a better selection of movies and TV shows with Watch Now. But, that's not going to be cheap. I think content creators used to look at Netflix as something on the side- they viewed it more as an extra/new revenue source rather than one that was taking away from other revenue sources.

Originally Posted by tvmaster2

OTOH, If people are willing to pay $17 month for lousy, stuttering, stereo TV (as opposed to 5.1), then I have given them too much credit.
Netflix price hike has made it easier for Sage/Google to appear at a lower price point if they are smart.

Streaming-only is $8/month.

Originally Posted by stanger89

As Gerry mentioned, they're not really raising their prices. I checked my account and it looks like nothing's changed. It's still going to be ~$28/mo for me, but that's with a 3 at a time plan with Blu-ray and unlimited streaming.

The price changes don't go into effect for current customers for a couple months. But the prices are going up. Right now 3-out with blu-ray access and streaming is $24 per month (and if you've been paying $28 you're getting ripped off somehow). It's going up to $28.

[tvmaster2]

how is the stock price relevant? If the company was worth $17 a year ago, and is worth $290 today, I find it hard to imagine that content providers have raised their licensing fees by a multiple of 17. This is a cash grab, and from the people who made them who they were: their subscribers. LMAO

and the prices HAVE and ARE going up. I paid $7.99 monthly for streaming/DVD delivery at the beginning of the year. That was the business model that was sold to me by Sony, Tivo, WD Plus and Netflix, as all those devices had Netflix built into their core at that time. The price had been consistent for at least a year, and I purchased those products with that in mind.
To then up the price by at least 20% ($9.99) is obscene enough in a down-market (isn't that one political party keeps telling us - that were so deeply in debt the sky is falling and none of us have jobs anymore?), and then to hike it again, eight months later is to me, corporate greed above and beyond.
I won't be buying products with "built-in" apps anymore, unless there is a way for me to install my own apps.
I was a sucker once. Apparently, there are a lot of people who enjoy turning over their hard-earned money. I am not one of them.

[valnar]

Life is to short to watch crappy video. I think most of us here probably watch too much video as it is, so I certainly am not going to waste my time with highly-compressed, low-quality stereo movies. And if the cable providers get their wish, you'll be hitting their bandwidth caps all the while doing that.

I don't mind waiting for media to arrive any more than I do hopping in the car and driving to the theater. If I need something ASAP, there is always Redbox or BB. Maybe I don't know what I'm missing, but I've never had Netflix streaming for more than the month trial. I thought it wasn't quite ready for prime time yet.

[tvmaster2]

Originally Posted by valnar

Life is to short to watch crappy video. I think most of us here probably watch too much video as it is, so I certainly am not going to waste my time with highly-compressed, low-quality stereo movies. And if the cable providers get their wish, you'll be hitting their bandwidth caps all the while doing that.

I don't mind waiting for media to arrive any more than I do hopping in the car and driving to the theater. If I need something ASAP, there is always Redbox or BB. Maybe I don't know what I'm missing, but I've never had Netflix streaming for more than the month trial. I thought it wasn't quite ready for prime time yet.

Finally, a voice of reason. lol. Could you imagine how loud the complaining and whining would be if your health care costs went up 20% in eight months? Or if your taxes went up 2% in five years? How about going in and asking your boss for a 20% raise? Yeah, that's gonna happen. Yet when Netflix offers you nothing more in terms of quality and service, and yanks another 60% from your wallet, people dance and sing.
It completely dumfounds me why people find some things acceptable and others objectionable.
Still, how will Google and Sage respond? The door's wide open for them to offer a whole lot more for a whole lot less, yet I imagine they will now use Netflix's prices as a barometer.

[PiX64]

The whole netflix thing pissed me right off. I already cancelled my account. I have been with them for 2.5 years and they have jacked my price 5 times now. I'm out of that garbage. RedBox it is for the wife.

*one thing i love is that i cancelled online and they didnt' even so much as send me to customer retention. They just said ok have a nice day and flipped me off...or at least in my mind they flipped me off :-D

[stanger89]

Originally Posted by reggie14

The price changes don't go into effect for current customers for a couple months. But the prices are going up. Right now 3-out with blu-ray access and streaming is $24 per month (and if you've been paying $28 you're getting ripped off somehow). It's going up to $28.

Right I was looking at the new plan pricing in my account (to change) which does appear to have the new pricing structure. $28 didn't seem much different than I'm paying now, but I guess it did go up $4.

I don't know it's still pretty cheap compared to the competition. At least around here, Redbox doesn't have near the Blu-ray (or in general) selection that Netflix does. And there's a lot of stuff I like on Watch instantly that simply isn't available for rental otherwise.

Originally Posted by tvmaster2

how is the stock price relevant? If the company was worth $17 a year ago, and is worth $290 today, I find it hard to imagine that content providers have raised their licensing fees by a multiple of 17. This is a cash grab, and from the people who made them who they were: their subscribers. LMAO

Again, stock price has nothing, zero, nada to do with how much cash or revenue a company has. Just because the stock price jumped 17x, doesn't mean netflix has 17x the cash.

Originally Posted by valnar

Life is to short to watch crappy video. I think most of us here probably watch too much video as it is, so I certainly am not going to waste my time with highly-compressed, low-quality stereo movies. And if the cable providers get their wish, you'll be hitting their bandwidth caps all the while doing that.

I don't mind waiting for media to arrive any more than I do hopping in the car and driving to the theater. If I need something ASAP, there is always Redbox or BB. Maybe I don't know what I'm missing, but I've never had Netflix streaming for more than the month trial. I thought it wasn't quite ready for prime time yet.

Unfortunately there's a lot of stuff on Netflix streaming that's not available through Redbox, or BB, or any other even remotely mainstream service.

Though I do find it interesting, people's thoughts on Watch Instantly. IMO it's not a substitute for Blu-ray, far from it. I get all my major movies on Blu-ray still. But Watch instantly is great for TV shows you want to get caught up on, or stuff not "worth" burning queue space/mail transit time on.

And for those of you complaining about the cost, go price something like Vudu, Zune, Amazon, iTunes or any of the other "streaming" services.

[pjpjpjpj]

My personal, highly-uninformed opinion, is that netflix would love to see all their stats slide towards the streaming side (now that they've unbundled, they'll obviously be watching this trending closely) to the point where they could shut down the hard-copy, through-the-mail side. Then they can close down a bunch of centers, dump a bunch of inventory, clear out storage centers, lay off a bunch of low-class mail-pusher employees, and only have to worry about maintaining servers for streaming. And then they'd start raising their prices every 6 months or so, too, to keep up with demand and because they have so many people addicted.

Then they will officially have become what they most likely started out with the intent to NOT be. A cable company. They'll just be an "on-demand-only, no live TV" version of one.

As for picture quality, remember that the large majority of the country is still watching SD, 4:3 TVs. Of course, a lot of those people won't ever be technologically advanced enough to try "that newfangled streaming TV thing" either....

[benjamintm]

I've been with Netflix for nine years (and I so wish I'd bought stock back when I joined). My understanding (from reputable news sources) is that they are not hurting for cash from their subscribers and that this move has two purposes:

1. Generate more revenue off of the DVD/Blu-Ray side of the business. They were making about $2 a subscription of of shipping discs out to customers.
2. Streaming is less expensive then sending out discs. Each disc has to be handled (by machine or by hand), whereas streaming can be a mostly automated process once the bits are on the drive.

That said, Netflix just doesn't offer enough content for me to warrant a 30% increase or even $7.99/month for streaming only. As a result, prior to the September 1st price hike I will be canceling my account. I've expressed this in as much in an email to the CEO Reed Hastings (reed.hastings@netflix.com). My hope is that a large enough customer outrage will force them to revisit their pricing.

Ben

[valnar]

Originally Posted by stanger89

Unfortunately there's a lot of stuff on Netflix streaming that's not available through Redbox, or BB, or any other even remotely mainstream service.

Maybe I'm too mainstream, but what is available on streaming that is not available in a disc format?

[bastafidli]

I might be minority, but I was and am extremely happy with Netflix. I am paying currently about $15 a month. For that I get about 16 DVDs a month and unlimited streaming. We have just moved and don't have any kind of live TV. We have been using only Netflix streaming and DVDs. For $15 a month I have received much better value than from any cable or satellite company I had in the past and have not been really missing anything. Sure, I may not see some show right a way and may wait few months until is available on disc or streaming. I don't mind waiting, there are decades of content ready for consumption right now (Or I can just pay for Hulu or iTunes if I am impatient).