Tony's ramblings on Open Source Software, Life and Photography

Is Netflix Cutting Their Throats?

I've used Netflix for nearly two years now. I signed up for $15 / month with three DVD's and unlimited streaming. Since January's price increase I've been paying $22 / month.

Now in less than 6 months they are increasing rates yet again, and by quite a large number. With taxes I'd be paying almost $30 / month for the same service, in addition to the $150 a month for Cable TV with Internet that I also have. Originally I justified Netflix because at $15 / month it was about the same price as what I paid at the local video rental shop.

Today I changed my plan to $7.99 streaming only, and the primary reason I'm keeping that is so my daughter can stream movies while at college. Then I found out that I can't stream to my Wii in the living room for the kids and my Blue Ray in the bedroom at the same time on that plan, so I may just cancel it completely.

With so much about stock prices and companies being based on total revenues, I don't see how they plan to win on this. Their streaming service is very limited in offering - almost no decent movies released on DVD in the past 2 years are available for streaming - but it was a nice addition to the DVD plan. Streaming is great if you simply want to watch old TV shows or a lot of cartoons.

If even 30% of their customers cut their monthly bill by three times like I did... are they going to be shocked by the result? Or is this part of their greater plan?


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