Netflix subscribers face dilemma as prices climb

Aug 31, 2011 By MICHAEL LIEDTKE , AP Technology Writer
In this Nov. 22, 2010 photo, a movie selected from among Netflix's "Watch Instantly" titles begins to download on a home computer screen in New York. Millions of Netflix subscribers will be wrestling with a new dilemma during the next month as they decide how to respond to price changes that will hit the video service's existing customers beginning Thursday, Sept. 1, 2011. (AP Photo/James H. Collins, File)

(AP) -- The toughest choice most Netflix customers usually face is figuring out which movie to put at the top of their queues.

But millions of Netflix will be wrestling with a new dilemma as they decide how to respond to price changes that will hit the video service's existing customers beginning Thursday.

The new system will impose substantially higher rates on customers who want to keep renting through the mail and enjoying the more immediate gratification of video over high-speed Internet connections.

A small number of .'s nearly 25 million U.S. subscribers will be unaffected because they had already limited their usage to Internet video streaming. Others will have to pay as much as 60 percent more unless they are prepared to wean themselves from one of Netflix's entertainment options or just close their service entirely.

Here's a few factors for Netflix subscribers to consider:

- Find out which day of the month Netflix bills you.

Click "Your Account & Help" on the top right, then look for the next billing date in the center. That is when the new rates take effect. For example, if Netflix doesn't charge you until the 22nd of each month, you still have another three weeks before being charged more to have both DVD rentals and Internet video. If you usually get billed on the second day of each month, you will need to make a change promptly to avoid being charged more.

- Know the new prices.

For the first time since it introduced Internet streaming in 2007, Netflix is offering DVD-only plans. For $8 per month, customers can rent an unlimited number of DVDs per month, with a maximum of one disc out per time. DVD-only plans allowing two discs out at time will cost $12 per month and three DVDs at a time will go for $16 per month.

The cheapest package that combines Internet video and DVD rentals (one disc at a time) will cost $16 per month - up from $10 per month under the old system.

The price for an Internet-streaming only plan remains $8 per month.

- If you're among the customers who want to keep just one of Netflix's entertainment options, assess what you like to watch on the service and how you watch it.

Internet streaming is more convenient because there's no waiting for video to be delivered by the U.S. postal system. It also enables viewing on personal computers, tablet computers and phones, besides television sets. The negatives: It requires high-speed Internet access, which isn't cheap, and Netflix's streaming library is about one-fifth the size of the 100,000 selections in the DVD section.

DVDs remain the best way to see the latest movies after they have ended their run in theaters. In some cases, Netflix must wait four weeks after DVDs go on sale in stores before they can mail them to customers, but that's far better than Internet streaming where the wait can last several years.

Internet streaming is better for watching good documentaries (which sometimes are available at the same time as the DVDs), catching up on past seasons of TV shows and enjoying older movies.

If you like to watch series such as "The Wire" and "Curb Your Enthusiasm" that have previously been shown on HBO, stick with DVDs because those titles have never shown up in Netflix's streaming library.

- Before abandoning Internet streaming, remember it is probably going to keep getting better because it is Netflix's top priority. Netflix has left no doubt that it intends to spend big bucks to make its streaming library more compelling. The company already has secured the exclusive rights to a series starring Academy Award-winning actor Kevin Spacey. That series, "House of Cards," initially will be available late next year only to Netflix's streaming customers.

- Keep some perspective. Sure, a 60 percent increase sounds outrageous, but it's only $6 more per month to have your DVDs and Internet , too. Most people could cover that cost by cutting out one or two visits to Starbucks or some other store each month.

Explore further: Icahn revamps Dell offer, urges rejection of buyout

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Netflix raises rates, irks subscribers

Jul 12, 2011

(AP) -- Netflix has provoked the ire of some of its 23 million subscribers by raising its prices by as much as 60 percent for those who want to rent DVDs by mail and watch video on the Internet.

Behind the increase: Why Netflix is raising prices

Jul 14, 2011

(AP) -- Why is Netflix raising its prices? In part, because the company miscalculated how many people still want to receive DVDs by mail each month, a more expensive service to provide compared to its streamed ...

Recommended for you

Hewlett-Packard puts Bradley in strategy role

11 hours ago

Todd Bradley, the head of Hewlett-Packard Co.'s printing and personal computer business, has been appointed to a new position in charge of the company's strategy with a focus on China, the company said Tuesday.

US video game retail sales fall 25 percent in May

12 hours ago

U.S. retail sales of video games, hardware and accessories declined 25 percent in May as demand for aging game consoles continued to fade and fewer new games launched compared with last year, according to market researcher ...

Facebook CEO meets SKorean president

18 hours ago

Facebook CEO Mark Zuckerberg has met South Korean President Park Geun-hye in Seoul to discuss ways to stimulate entrepreneurship and venture firms in Asia's fourth-largest economy.

Lebanese start-ups seek tech boom

18 hours ago

Lebanon has long suffered with some of the slowest Internet speeds in the world, but a new crop of online entrepreneurs believes their country is primed for a tech start-up boom.

User comments : 3

Adjust slider to filter visible comments by rank

Display comments: newest first

typicalguy
not rated yet Aug 31, 2011
If I had two cups of coffee or a mcdonalds meal for every time a person on the Internet equates something to it, I'd have enough to open myown stores. Part of the problem is that most cable services have free on demand programming. Do you really need both?
caeman
not rated yet Aug 31, 2011
I removed my DVD plan a month ago when they first released the news. I don't watch enough DVDs to justify paying even something as low as $8/month. I don't rent DVDs now, but NetFlix was convenient.

Because I removed the DVD thing, Netflix is gaining $2 less dollars from me. Multiply that by possibly 1 million more subscribers in my same position. $2M a month may not be a big deal to them, I guess, now that they are huge.
paulthebassguy2
1.8 / 5 (5) Sep 01, 2011
Torrenting solves all these issues. The only limitation is your bandwidth.

More news stories

Mozilla lab wants scientists to step out of analog age

(Phys.org) —Talk about big ideas. Not satisfied to rest on laurels of having brought forth the open source browser Firefox, Mozilla—defined by some as a global project, by others as one of the key open-source ...

Qatar bails out Germany's Solarworld

German solar panel manufacturer Solarworld announced Tuesday a capital injection by Qatar, a move which will save the company from bankruptcy as the German sector struggles against Asian competition.

3D printing tiny batteries

(Phys.org) —3D printing can now be used to print lithium-ion microbatteries the size of a grain of sand. The printed microbatteries could supply electricity to tiny devices in fields from medicine to communications, ...