Netflix is raising their prices again!

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I've heard they went with this new pricing structure because people with streaming were sitting on DVDs for too long.
Actually that doesn't make any sense. I would think Netflix would LOVE people to sit on a disc for as long as they want.

I've had the 3-at-a-time plan for a couple of years. 99% of what I get from them I rip & send the disk back the next day unwatched. Depending on available disk space & laziness, I would get 3 disks in the mail monday, drop them in the mail on the way to work Tuesday, & have 3 more disks on Thursday. Drop those in the mail Friday & repeat. That's 24 disks a month. 24 x postage both ways. 24 x handling & processing.

On the other hand, due to a lengthy stretch of apathy, I had the same 3 discs for the last 8 months. Discounting the $8/mo streaming portion, that means I paid $14 a month to keep the same 3 discs. You'd think at some point they'd send me an email saying "You know what? They're yours now. We'll send you the cases & the next 3 on your list". But no, they didn't. I returned them a few weeks ago & they sent the next 3 on my list, with no other comment.

This is purely an pre-emptive adjustment for expected higher costs. Its been less than a week since Sony pulled most of their offerings from the availability list. Netflix's position here is similar to Southwest Airlines. They were visionaries & locked in a long term deal for a very low price. Now the studios want a bigger piece of the pie, & Netflix is going to have to pay it & pass it along to the customer.

Long story short - I'm probably going to drop down to 2 discs at a time.
 
What he said. Studios see success and want a bigger cut. Honestly, we do three discs at a time now to see things not available and use streaming for TV shows, but I'd cut the discs before I cut the streaming. Being able to bring something up to watch basically anywhere is worth is for me.
 

figmentPez

Staff member
Actually that doesn't make any sense. I would think Netflix would LOVE people to sit on a disc for as long as they want.
My guess, and I could be wrong, is that inventory management is much more difficult with slow return times. The cost of sending and returning discs for heavy users may be greater, but when the discs are coming and going regularly I assume it's easier to know how many copies of any given film to buy. If 100 people sit on their copies of "Megahit Movie" and that's out of 1,000 copies, that's no big deal. If 50 people sit on "Obscure Art Film" and that's out of 100 copies total, that will really lengthen the queue time. The lower shipping costs probably can't offset buying extra copies of every single film.
 
Actually, this is really good for me. I'm about to pay less for the service I primarily use and drop the one I don't.
 
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