Jul 13, 2011

Netflix Hikes Up Prices


According to the official Netflix blog, Netflix is getting jerked around by Hollywood, so in a whiplash effect, Netflix is forced to jerk it's new and current customers around as well. In the good old early days of Netflix subscriptions, the most basic plan was 1 DVD out at a time + Instant Watch for $7.99, or 1 DVD out a time without Instant Watch for around $4.99. Only a few months ago, Netflix created a subscription option of just Instant Watch for $7.99, which pushed all other plans' pricing up. Everyone was excited that this move would have at least funded Netflix to score some real big deals for Instant Watch. There's been some peaks and valleys with Instant Watch since that move, but mostly valleys such as the taking away of some shows / limiting of seasons of shows, and adding of great shows for a very limited time only.

Now, Netflix is eliminating the subscription plans combining DVDs and Instant Watch. If you want even 1 DVD out at a time, that's $7.99. If you want just Instant Watch, that's $7.99. If you want both, get ready for this P.T. Barnum number, you get a whopping 0% discount and a bill of $15.98. My plan just increased by 50%! But as consolation for being an existing and loyal member of Netflix, the new pricing plan won't effect me until September.

Many are outraged; some directing their anger toward Netflix, and some directing their anger toward the bullying and greedy Hollywood that has Netflix by the scruff of their neck. For many others however, this is no more than a minor inconvenience. I'm not talking about the ivory tower deep pocket "many others" here, i'm talking about the frugal bunch who go the non-traditional route. There's a growing movement of people out there canceling their cable subscription ($60, $70, $80, maybe even $90) and paying the (now) $16+ for Netflix Instant Watch + dvds (maybe multiple at a time) and maybe tagging on an additional subscription to Hulu Plus (still $7.99 and with all current shows to keep up to date with your social circles) or Amazon Prime (which is pricey but comes with a lot of additional features such as free shipping on all amazon orders).

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