Netflix Price Increase: Much Ado About Nothing


In 1998 Reed Hastings founded Netflix, the lar...

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All the media are abuzz with chatter, mostly ranting, about the big price increase announced by Netflix on Tuesday.  In a nutshell, if you were on their one-DVD-at-a-time plan by mail with unlimited Internet streaming, your $9.99 subscription just increased to $15.98 ($7.99 for the DVD’s, $7.99 for the streaming).  Sure, it’s a 60% increase in your monthly bill, but it’s 6 bucks more, FOR CRYING OUT LOUD, and what are your alternatives?  Well, there are actually more alternatives than one can mention in an “Itty Bitty” post, mostly of the Internet streaming variety, but the $7.99 unlimited Internet streaming price is on par with Hulu, a notable online competitor of Netflix.  If you are still a DVD or Blu-Ray disk watcher, then the alternatives are fewer and much less convenient, namely places like Blockbuster Video or, dare I say, those stupid Redbox vending machines (see my earlier blog post on this preposterous business model: http://wp.me/p1pRY1-fL).  Give up Netflix convenience for that nonsense?  I think not.  Will some people defect from Netflix to take a stand over 6 bucks a month?  Sure.  But for now, Netflix still offers an excellent value for an exceptional service, and most people will buck up, or 6 buck up, in this case.

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3 responses to “Netflix Price Increase: Much Ado About Nothing

  1. 100% agree with you. The rage out there over this issue is ridiculous. I never use my DVD service from Netflix so this new plan will actually save me $2/month. I’m hoping that most people make that decision so that Netflix can show the studios that DVDs are quickly becoming a dead medium and that digital delivery is the way to go.

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  2. I, too, agree. I go with digital streaming and leave scratched DVDs for art class projects.

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