So, I like many other Netflix users, received a disheartening e-mail today about a change in the Netflix pricing. Now, instead of receiving streaming and DVDs together at one price, each service is offered separately and charged separately.
Currently, I have 5 discs out at a time and I get free streaming for the pretty price of 34.99, plus tax. Starting in September, I will have the same service for 35.98, plus tax…barely a dollar increase for the same service.
The cheapskate that I am would normally be outraged at being charged more for the same service, but if I liken it to cable service, Netflix comes out the winner. For years Time Warner had effectively screwed me over by increasing their prices as much as ten dollars a month for receiving the exact same service, without having reasons as valid as Netflix’s.
What reasons, you ask? How about multi-fold increases in the customer base, all running off the same servers and all needing to increase the contracts with the studios? Sounds like a fair reason to increase a bit for the least profitable services.
What’s not profitable, you ask? How about the people paying 16.99 for 3 discs at a time and also a service that people who have no discs pay for 7.99? If you do the math, it only makes sense to differ the services as the folks paying 16.99 are getting far more than anyone else on line.
Now, someone like me at the higher echelon of Netflix service barely feels in the increase at all. In fact, it feels like a decent and expected increase for the cost of service and I don’t remember this big a stink when the previous year’s price increases came to light. That said, if you were paying just 16.99 for 3 discs at a time, you have been rather hosed, but seriously…why are people losing their minds over this? Did no one ever expect that Netflix prices were eventually going to increase over time?
It’s unfortunate that if you originally paid less than $20 for an awesome service that you now have to pay a whopping 8 dollars more than you did two months earlier, but when you consider the alternative, you are still paying far less than you did for cable.
If you are pressed for cash, then decide what you use more. Are you really taking advantage of all three discs at your house at the same time you stream movies and TV shows? If not, take advantage of one of the brilliant other offers available, like 1 disc at a time for 15.98, for example, and stop crying. If you do use all three discs and stream like crazy, then be advised that the gravy train stops here.
I, however, not being cheap when it comes to my Netflix love, feel very little of this new chain of events and, honestly, if a price hike is what it takes to keep Netflix service great and keep them from moving their call centers to abroad, I’ll pay an extra dollar or eight any day.