Netflix to raise prices come september 5th

[Mawdryn]

Netflix to U.S. Post: Drop dead

Netflix's new pricing strategy could hurt some consumers,
but it's a definite blow to the U.S. Postal Service.


Netflix (NFLX) today declared war on DVDs, pledging to relegate them to the same dustbin that is occupied by VHS and Betamax tapes.

...
Wall Street reacted positively to the news, with Netflix shares up 53 cents to a staggering $291.27 per share. The technorati seem a bit more circumspect, particularly given that Netflix is known for having a much deeper DVD library than streaming library.

But for real grievance, you need to look to the U.S. Postal Service. It won't publicly complain, of course, but Netflix CEO Reed Hastings said last October that his company spent between $500 million and $600 million on DVD postage. That's approximately 20% of all revenue that the Postal Service booked from first-class "flats" last year, and 1.7% of all first-class mail revenue.

Moreover, Netflix increased the number of DVDs mailed to subscribers last year by 9.7%. Had it remained on that pace, it would have been nearing the $660 million mark for 2011.

...

While the loss of that much income hurts a lot, the "20%" number is a little misleading. Practically NO flats (magazines, catalogs, etc) are shipped 1st class, and the bulk of the USPS's income hasn't come from 1st class mail in a LONG time (unfortunately)...

I'll definitely miss the business, though I kinda question those numbers anyway. I deliver on average 450 boxes a day, and maybe 10 Netflix discs? I think a lot of people dropped down to stream-only a long time ago, just like I did...

[snusjus]

This price rise doesn't affect me, since I use streaming on-demand exclusively. Personally, I'm surprised Netflix still offers snail-mail DVDs -- it would significantly cut costs if they ceased shipping physical DVDs.

[sgreger1]

This price rise doesn't affect me, since I use streaming on-demand exclusively. Personally, I'm surprised Netflix still offers snail-mail DVDs -- it would significantly cut costs if they ceased shipping physical DVDs.

I'm the same way. but you have to realize that like 50% of America doesn't have the ability to stream to their TV (or doesn't know how to set it up).

I was going through some drawers yesterday and found a rack of CD's and DVD's and it was like finding a bunch of old casette tapes, I was like "lol, who even uses these old school physical mediums anymore?"

[AtreyuKun]

They dropped The Neverending Story, Satan's Little Helper, and Monsturd.
NES I can maybe maaaybe understand, but the other 2, they were complete shit. Why drop something like that from instant?

[ChaoticGemini]

I know many people in my hometown (north-east MI) that still use DVD netflix. They claim Redbox is always empty. Many can't afford the high price the local cable monopoly has on broadband. Dish won't service the area. Cell phone coverage not reliable enough to go mobile. Most have dial-up or no internet at all. When we did the conversion to digital broadcast, I actually had to send my father a conversion box since ALL stores were sold out of them up there. Most of us live in cities, but there are still many places off the beaten path in this country that are still stuck using old technology and physical mediums sent to them are the only way many can connect to the outside world.

[Bigblue1]

was doing some research for some old people that can't use the internet correctly, and came across this article, which is not a bad article but the last sentence of it scared me.....


"Netflix's future is not in the DVDs," he said. "Netflix's future is in the business of premium pay television delivered over the Internet."

this will come as a shocking blow to those of us who are "ditching" cable or reducing it. So netflix wants to be a stand alone cable channel, it will never work. As a child of the 80's I have been there done that. Spectravision, ontv, and a few others. I'm getting a real Icky feeling about all this change from netflix. It's kinda reminding me of free Atm's at the moment........

http://news.yahoo.com/behind-increas...094058403.html

[rickcharles606]

Goodbye Netfu*ks ;-)

[devilock76]

was doing some research for some old people that can't use the internet correctly, and came across this article, which is not a bad article but the last sentence of it scared me.....


"Netflix's future is not in the DVDs," he said. "Netflix's future is in the business of premium pay television delivered over the Internet."

this will come as a shocking blow to those of us who are "ditching" cable or reducing it. So netflix wants to be a stand alone cable channel, it will never work. As a child of the 80's I have been there done that. Spectravision, ontv, and a few others. I'm getting a real Icky feeling about all this change from netflix. It's kinda reminding me of free Atm's at the moment........

http://news.yahoo.com/behind-increas...094058403.html

Why is this a bad thing? Take a customer like me (all I can speculate on) my problem is to watch what I want to watch on TV and get all the channels that carry what I want to watch costs me better than $70. For that $70 I get a ton of pure crap I don't want to watch. I want ala cart, I am willing to curt cable and pay even $40 a month in services that can give me movies and a few shows on demand at that moment with no commercials. That is what netflix in combination with Amazon VOD can do for me.

Ken

[snusjus]

I'm the same way. but you have to realize that like 50% of America doesn't have the ability to stream to their TV (or doesn't know how to set it up).

I was going through some drawers yesterday and found a rack of CD's and DVD's and it was like finding a bunch of old casette tapes, I was like "lol, who even uses these old school physical mediums anymore?"

I know the feeling. I haven't purchased a CD/DVD/Blu-Ray in years; all the $10/$15 DVDs at Best Buy are available on Netflix. As for books though, I still prefer the physical format compared to the Kindle/Nook/etc. Unfortunately, paperbacks will probably disappear in the distant future.

[devilock76]

I know the feeling. I haven't purchased a CD/DVD/Blu-Ray in years; all the $10/$15 DVDs at Best Buy are available on Netflix. As for books though, I still prefer the physical format compared to the Kindle/Nook/etc. Unfortunately, paperbacks will probably disappear in the distant future.

I pretty much read just free books via Project Guttenberg and other free sites. On my iPhone or Gtab it is a pleasant enough experience. Granted the way they are pricing e-books now is retarded and they need to change it back to $1 and $2 downloads. Although I like a physical book I need to trim the space needed for said books. I have thousands of books in my own personal library, read them all, but having an E-library only is appealing to me. I have already done that with music and video so why not books. Granted I will keep certain ones like the antique ones I have and certain reference books, etc. But for the most part it will be nice to get rid of several book shelves and loads of boxes in storage of just a ridiculous amounts of books I have.

Ken

[sirloot]

i dropped to the streaming only as id get a dvd in the mail watch it and it would sit around a month or so before i even returned it ... most likey ending up on streaming sometimes days after i get the disk so no loss

imo its better than paying $100+ for a cable bundle and only realy watchin a handfull of channels out of the 100's (i havent had cable tv in about 3-4 yrs)

and they dont realy drop the series most are on months rotations an will be back on streaming in a few mons or so