It's true that Netflix has raised the price of its DVD rentals and online movie packages by 60 percent, removing the cheap streaming and DVD option, but their new plans aren't really that bad. The latest plan for both DVD rentals (one at a time) and unlimited streaming was a bargain at $9.99, a steal even. And although the price is now $15.98 a month, it's not the only option.
The only qualm we foresee with this is that the streaming option may not provide full access to all new releases, as the DVD option currently does.
This, though annoying to Netflix membership holders, is a logical step for Netflix. And with the ability to share one existing streaming account with multiple people by just typing in their email and password, Netflix has to find a way to sustain their business.
As television and film viewers evolve, corporations have to evolve as well. And with downloading easily accessible, it's possible this wasn't an option for Netflix, but a necessity. A business is a business, and when the masses are dropping over $10 on a movie theatre ticket, it's surprising that people are taking to social media to berate Netflix for increasing their prices.
People are canceling their Netflix accounts, stating the sudden increase in price to be the reason. One Twitter threatened Netflix and tweeted, U like apples #netflix? How u like dem Apples?? *boston accent* I may cancel my #netflix. Another user wrote: Dear #Netflix, I'm glad I dont have any account with you and use my friends account.
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Not everyone is outraged though, one user commented with a hint of sarcasm: Dear #Netflix: The NERVE you have to still offer us an unbelievably good deal on DVD rental and video streaming!!!
Another wrote, People are so upset w/ #Netflix. But I did wonder how they could charge so little for sending me DVDs *&* letting me stream unlimited films.
But even despite over 33,000 comments regarding the price increase, Netflix is remaining bullish.
It's more than likely that people will opt for the Unlimited Streaming and then forget that there was a cheap option to do both. And if you think about it, Netflix is really making consumers be more green. By selecting the stream only option, it decreases overhead and it reduces waste.
When Netflix started out, the DVD rental was the base, its core, its strength. However, 2011 saw a boom in online streaming and content.
Netflix wanted to be paid more from studios for the content that Netflix was streaming, but the studios had the upper hand.
With competitors out there, such as Blockbuster, Red Box, Hulu, and iTunes, Netflix has to find a way to keep its infrastructure costs low.
Netflix has another year or two on most of these contracts, and then the game completely changes, said Michael Pachter, an analyst at Wedbush securities.
Pachter told CNN earlier this week that Netflix's content cost could grow from $180 million in 2010 to $1.98 billion in 2012.
On Monday, the company saw its stock price top $300, today the last trade was at $291.27. Over the weekend, Netflix stated that it wouldn't be placing a bid to acquire Hulu.com.
Also, if you're not bothered by the sudden increase in viewing prices, and if you own an Android, you can watch TV shows & movies on your phone with the Android App: The app is currently part of the unlimited membership. Viewers can watch as often as they want, or, resume a film or program where they left off on their TV or computer. One of the best perks for those who may not want to squint to watch a show on their Android, is that they can update their Queue from their phone.
When the New York Times announced that it would be charging members if they wanted unlimited access to the site, readers were outraged and took to social media platforms such as Facebook and Twitter to display their frustrations. But with time, the furry died off and people have resolved to either reading the 20 article minimum, linking from Twitter, or paying a fee to read their news.
Tell us what you think about the new Netflix renting prices in the comments below.