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Netflix to increase streaming prices for new customers

Netflix

Netflix has released their Q1 2014 earnings report today, and bundled deep in the news about numbers and dollars is a short paragraph about pricing.

Later this quarter, Netflix plans to increase prices for new streaming customers by $1 to $2 more per month. Current subscribers will continue to pay what they're paying ($7.99 here in the states) for a "generous time period."

As expected, we saw limited impact from our January price increase for new members in Ireland (from €6.99 to €7.99), which included grandfathering all existing members at €6.99 for two years. In the U.S. we have greatly improved our content selection since we introduced our streaming plan in 2010 at $7.99 per month. Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only. Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period . These changes will enable us to acquire more content and deliver an even better streaming experience.

Netflix justifies this increase with mention of their expanded streaming library and original content.

What say you? Will you spend up to $2 more per month to keep Netflix? Sound off in the comments.

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Netflix to increase streaming prices for new customers

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I understand that you may no longer feel that Netflix is providing adequate value for your money, but a dollar or two per month of price increase is practically inevitable. The price of doing business has gone up. The cable monopolies are working hard to ensure that streaming service providers costs skyrocket to force them to increase prices, lose customers, and die. The movie studios are complicit in this too, as they would love to have their own streaming service that costs you $10+/mo. just for their content.

being inevitable doesn't make it "value for money." Now you can debate whether it is or isn't but nobody cares if the price Netflix's business goes up. They either feel it's worth it or not. The same as the many people that buy a cheaper smartphone because they feel the flagships are too expensive. They don't care if some new feature like a super clear screen or whatever costs more, it's not worth the added price. Same could be said for lots of things. Most people are price concious. And they will choose to continue using services based on percieved value not on whether price hikes are inevitable.

The truth is many things simply stop making business sense. Take music. The cost of making records has gone up for studio since they get far less profit now due to the decline of dvd sales. Now they simply fund far fewer music albums because it's a crap business now. A similar dynamic is going on in the movie industry. They used to generate huge revenue from dvd sales but they don't make nearly what they used to since dvd sales have fallen off a cliff. With lower profits studios have generally downsized the total number of movies made per year. I think Sony Pictures has gone from making about 24 movies per year to 17. Not positive on the numbers as i heard them quite a while ago. But they make less movies because its a higher risk game for them now. And hell it's not just the studios, the consumer has found it cost much more to go to a theater so fewer people went to movies last year. People will always vote with their wallets. Some it won't matter others it will. Price hikes may be inevitable but it's not inevitable that customers will stay because many wont.

I don't blame them really. Their model isn't the best because it's dependant on buying rights. That's why they have to make movies. As long as they have to buy rights which isn't changing, a studio selling content to them will raise their demand whenever netflix profits rise. They can see exactly what netflix can afford. That's why at some point netflix will become like hbo: very few movies and selling it's own programing.

It's a dollar or two. There's no way in hell that someone paying for broadband, with an HDTV and some kind of streaming box to connect Netflix to the TV can really complain about $1-2 and be rational about it. Come on, broadband itself costs $50+ for the most part.

Oh for god's sake there's always these people.... "WHAT AN INCREASE? BY A *DOLLAR*!!!?!?!?" UNACCEPTABLE!!!

many of you then go drop by Starbucks or the like and buy your $4 latte on the way to work. Sigh.

I dropped netflix. It just isn't worth it. There are too many free things available with my Roku, coupled with the fact that (for less money) I get 2 day shipping and movies via Amazon. The value, for me at least, just isn't there with netflix.

I was just looking at Netflix. Some things on Hulu Plus will not play on the iPad because they do not have the license for it. You have to bring out the computer to play it. I am sure they will go up on their prices. Just be honest about it, do not sneak it in. I do not mind paying for more content. Just do not give me crap content, and expect me to pay.

Don't forget you can Airplay Hulu computer only content to an Apple TV. You'll want a good wireless connection (or wired connections to both the Mac and the ATV), but I've done this a couple of times when Hulu has something I want to watch and it's not licensed for playback on the TV (what a silly restriction, too...)

If I didn't have netflix before, now I don't think I will!!! I always get an email asking me to comeback but I don't find nothing new to see to be wasting my money

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I'll stay a subscriber if the increased by a buck or two, but as long as they expanded their content (Canadian Netflix)

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Likely I will. If it is two more years? Sure. I am moving and planning to just get internet, no land line, no TV. I will still be saving money because I pay for these services now.

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$9-10 per month is still cheap--especially since I quit cable or satellite. (I was literally watching 4-6% of the channels I was paying for each month.)

I get it, their costs are up because of original content costs and money for traffic on crappy ISPs, but it's sill worth it to me.

Amazon Prime raised it price so it should be no surprise that Netflix would. Honestly, both are good values, with Prime being best with the shipping if you shop Amazon. Both add movies regularly and eventually they get the big movies or shows. Yeah, I stick with Netflix as long as they keep adding content.

Maybe I will stay, maybe I won't. I like netflix just to have, but if it gets anything over $10, I will leave

OMG!!!! I could potentially pay $10 for Netflix instead of $8. I don't make a ton of cash but I PERSONALLY will not miss the mortgage with this 2 buck hike. I feel I get value for my dollar and the moment that changes is when I leave, not just because of a couple dollars that may happen some time in the future.

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I just want to know how long this "generous" timing will actually be? A month? A year? On a somewhat unrelated note this makes me worry about when AT&T will cancel their grand-fathered plans.

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It's funny when I see people complain about people complaining.. lol! Yes it is only a 1 or 2$ increase.. But in my mind, it is only the beginning.. Kind of like when gas went up ONLY a few cents per gallon.. Everyone was like "O, that is pennies.." Look where we are now...

I'm an existing customer and wouldn't mind if they increased a dollar or two. I love my Netflix, there's always something to watch and lots of public WiFi in my area.

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In our house we use Netflix every day. We use it a many times more than Hulu and Amazon Prime combined. Yes there is content differences and overlap but Netflix actually has functional (meaning usable) queues that each family member can (and has) customized. Good quality, universally available, decent content, and much more pleasant to use. Well worth the money IMO.