Netflix, the big player in online movies and DVDs at your doorstep, has made a bold move in raising its prices. Here’s the deal: Current subscribers pay $9.99 for unlimited DVDs (one at a time) and streaming. Now, Neflix is bumping that up to $15.98. If you want to take out 2 DVDs at a time, then you’re looking at $11.99 + the $7.99 for unlimited streaming movies.
Why the price hike? Netflix has to pay the bills! Specifically, the content and studios costs have increased to an extra $2 billion so Netflix has to pay it somehow. Well, try explaining that to the millions of Netflix subscribers who aren’t too happy. Well, angry Neflix customers will get even angrier in 2 years when most of Netflix’ partnerships with content providers are ending. At that time, the cost to broadcast content will be much higher, possibly forcing Netflix to ask subscribers to pay even more.
Yes, paying more is not fun. We pay more about every year to the NYC subway system. But, in doing so, we have to look at Netflix’ competitors to determine if the relative cost is still worth it.
Let’s check out a run-down of Netflix’s competitors:
- Hulu Plus – $7.99 / month for unlimited streaming movies and TV shows
- Blockbuster – $11.99 /month for 1 DVD at a time and unlimited movies, TV and games
- Apple TV – $99 for the hardware and 99 cents per TV show; $2.99 / movie
- Amazon – $3.99 / movie rentals and free movies for Prime customers.
Hulu Plus and Blockbuster have monthly streaming packages that are cheaper than Netflix, but Netflix still has the most movies to choose from. However, upset Netflix customers may want to make the switch to the cheaper IT services. Keep in mind that all of these services pretty much have the same new releases, but older hard-to-find movies will be more easily found via Netflix. On a technology support note, Netflix has great IT support and are willing to go the extra mile. The other services, such as Hulu Plus, do not have a live person to assist like Netflix which my help retain Netflix customers.
