This month, Netflix is kicking in its new price increase. Instead of just the $9.99 a month charge for Netflix streaming and one DVD out at a time, they have separated it into two separate plans–$7.99 for streaming and $7.99 for shipping DVDs. This is approximately a 60% increase in monthly service charges.
When this was announced back in July, all “heck” broke loose online. Facebook, Twitter, the Netflix blog–all of these venues were inundated with Netflix subscribers that were up in arms over the new price changes, complaining about the lack of content on streaming and the lowered cost of renting (for example, Redbox DVDs at a dollar a day), and everyone under the sun confessed their plans to drop Netflix altogether.
Everyone has the right to their own opinion on the matter. And here’s mine: good for you, Netflix.
The problem here is that everyone got a little too spoiled with Netflix’s service. Back when they first came out with the whole “mailing out DVDs” concept, I think they were grossly under-priced for the service that they offered. Which I think it part of the reason they had so many subscribers. Then when streaming became a part of the deal, people knew they were getting even more bang for their buck each month. But then when Netflix decides to charge a more, ahem, “reasonable” price for the services that they offer, they “virtually” get their heads cut off for trying to make a business decision that quite possibly should have been made ages ago. I don’t know the company’s finances, I don’t run their numbers, but I’m sure with the services they were providing and the price they were charging, I find it difficult to think that they made much of a profit after all was said and done. I could be very wrong, I’m no financial advisor, but shipping out DVDs and having the server capabilities that they need in order to allow anyone and everyone to stream entire movies to their home couldn’t possibly be cheap. Raising their prices probably just compensates for the cost of making such services available.
Supposedly, Redbox, one of Netflix’s biggest “competitors”, will be offering movie streaming by the end of the year, but what they will charge for this supposed service is unknown at this point in time. However, Netflix is available through a number of devices, including Internet-connected Blu-ray players and high definition televisions, the iPhone, and Xbox 360, just to name a few. But even then, what would Redbox charge? If it were the same, which would you choose? And Netflix still has the upper hand because Netflix does not require you to go anywhere in order to get a movie–from the comfort of your home, you use a free prepaid envelope to send movies back when you’re done. Sure, you have to wait a day or two, but in the meantime, you’ve got streaming!
I, for one, am not canceling my Netflix account. And I have numerous reasons for keeping it.
First off, I do not have cable TV. In fact, I don’t even have “regular” TV. I have a digital cable box for getting the standard channels, but the audio cuts out and the video is horrid and I get frustrated just trying to watch the local news, so I gave up entirely. No TV here at the Haley house. But I *do* have an Xbox 360, with a Live account, in which I use to watch Netflix streaming. And by me, I mean “my daughter.” My daughter used to love Nick Jr (previously Noggin) when we had cable. It was on all day, every day in my home. Even when she was playing and not even paying attention to it, it had to be on. However, when I dropped cable, I knew her DVDs wouldn’t do the trick. Netflix has just about every one of her favorite shows on streaming–Dora the Explorer, Diego, the Backyardigans, Wonder Pets, Yo Gabba Gabba–the list goes on. My TV is constantly playing shows from Netflix. Seriously. CONSTANTLY. Once my daughter goes to bed, I hunker down in my bed with my laptop and watch a few episodes of Nip/Tuck or a quick documentary that I’ve added to my queue. Wanna hear something even more pathetically sad? I watch Netflix on my iPhone while I’m at the gym. No joke. That’s the best time for me to catch up on a few TV season episodes, from the treadmill or the stair climber.
From the moment I wake up to the time I go to bed, Netflix is part of my life. It is cheaper than cable–here in Omaha, anyway. Much cheaper. The cheapest service I have seen for cable here is just shy of $60 a month, and that’s just for about 60 channels with Cox Communications. With Netflix streaming, you can watch what you want, when you want. I have never experienced ANY downtime with Netflix. One month of service is still cheaper than buying my daughter a single DVD each month of her favorite show. Netflix streaming is my child’s hero. Netflix is a household word here.
And the DVDs? Eh. I send them and get them, but it takes me a while, and I could probably do without that service but I still send enough back and forth to make it worth the extra money that they are now charging. I don’t think I will be removing the DVD plan from my subscription either. I know a number of people complain about the amount of time it takes for a DVD to end up on streaming, but I have never once felt there was a lack of anything to watch on there. Heck, you should have seen my excitement the other day when I noticed Disney’s Tangled showed up on streaming–and you can be rest assured my daughter has already watched it back-to-back probably a good twenty times once we saw that!
Unlike the rest of the world apparently, I cannot say enough good things about Netflix. As a single mother with an extremely tight monthly budget, I find that I get much more bang for my buck through Netflix each month than I ever would with cable TV. I am a tight-wad when it comes to my money, because I need to be. And considering a month of Netflix still costs less each month than a single evening at the movie theaters or a brand new DVD release at the store, I think I’ll be sticking around to see what more Netflix has to offer. I have a feeling they have a lot better things to come as they continue to grow!
Omaha Moms 