Netflix To Raise Prices By 13% To 18% (cnbc.com) 228
Netflix is raising its U.S. prices by 13 percent to 18 percent, its biggest increase since the company launched its streaming service 12 years ago. From a report: Its most popular plan will see the largest hike, to $13 per month from $11. That option offers high-definition streaming on up to two different internet-connected devices simultaneously. Even at the higher price, that plan is still a few dollars cheaper than HBO, whose streaming service charges $15 per month. The extra cash will help to pay for Netflix's huge investment in original shows and films and finance the heavy debt it has assumed to ward off rivals such as Amazon, Disney and AT&T. This marks the fourth time that Netflix has raised its U.S. prices; the last hike came in late 2017. But this is the first time that higher prices will hit all 58 million U.S. subscribers, the number Netflix reported at the end of September.
If only ... (Score:5, Funny)
If only there were a way to pay for original programming by using advertising or something. That way, everybody could have all of these TV "networks" piped into their homes for a low cost fee and maybe even pick and choose "plans" that suite them as a mix and match of the "channels" with shows they like to watch. It should really keep the cost down vs having to pay $15 to all these separate streaming services ... oh wait
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Re:If only ... (Score:5, Insightful)
Streaming brings better quality and less time loss.
So does piracy. Every incremental price increase makes piracy look like a better deal. Netflix better be careful about finding that sweet spot and staying within it.
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Netflix is raising its U.S. prices by 13 percent to 18 percent, its biggest increase since the company launched its streaming service 12 years ago.
Streaming brings better quality and less time loss.
So does piracy. Every incremental price increase makes piracy look like a better deal.
My Plex lifetime account is looking better and better. Oh, and the OTA recorder that also strips commercials isn't bad, either. Wish it did TiVo though, and set markers and not actually delete them (since sometimes it gets it wrong.)
Piracy? Oh, you mean stealing (Imaginary) Property? Why the shows are right on cable/streaming where they've always been, although I'm actually watching (and renting and buying) more anime/manga from ShoenJump, HiDive, and others. The jury's still out on FUN vs CR/VRV t
Re:If only ... (Score:4, Insightful)
Oh, you mean stealing (Imaginary) Property?
Oh, you mean copying data without permission?
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Which is still against the law in most countries and comes with criminal penalties. Saying it's not "stealing" is disingenuous.
Re:If only ... (Score:4, Informative)
Kids barely watch Netflix even when it's available - YouTube has far more interesting and entertaining content, with zero direct fees.
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And even cheaper and still legal: shut it all off. The justification that illegal actions are ok because legal actions cost "too much" ignore the fact that (legal) inaction is even cheaper. Unless health/life/safety factors are at play, justifying illegal activity on an economic basis is highly questionable.
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Agreed. So much piracy is justified in these ways, with an implication that because the cost is high that they must find other ways to get it. That rational works for food, but not for optional luxury activities like watching Game of Thrones.
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As long as you can avoid the attention of law enforcement also. I remember a boss who used to bitch a couple times a year whenever his fake satellite smart card would be wiped and he'd have to buy another one on the black market. He just looked at me funny when I suggested subscribing legally instead.
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Are you kidding? It's not 2009 anymore - why are you downloading torrents? I will admit that Kodi isn't quite as seamless as Netflix, but the options are far superior.
Uh, torrents mean you get a proper, clean, high quality rip/encode. Kodi plugins mean you connect to some source 8000 miles away, that may or may not be up, that may or not be decent quality, that may or may not be fast enough to actually watch the thing. Or your plugin is torrenting anyway but you just don't know it.
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But Netflix, even at the new $13/mo price, is still a great bargain. Compare to a typical $100/mo cable bill.
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They lost programming through no fault of their own. They still have a great selection, it's just not as great as it was. Their original programming does help to offset that. If Netflix only offered the dribs and drabs that content owners allowed, it would have faded away. As it is, there is more stuff Netflix offers on my watch list than I will ever be able to catch up on.
As far as legal and ethical options, I think it's the best one out there and despite the price increase is still an amazing bargain.
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Individual rentals are incredibly overpriced I feel. Especially for movies, but even for tv series to charge $2 or $3 for a single 45 minute episode is absurdly high. If I watch more than an hour a week then Netflix is cheaper.
I found Prime to be much inferior to Netflix. Less content seems comes with Prime than Netflix, unless you're counting premium channels or those shows that require an additional payment on top of the Prime subscription. The only real reason to stream with Prime is if you're alread
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That's what annoys me about Youtube - adblock stops all ads with Youtube on my computer. But streaming it to my TV I see the ads again. I tried some adblockers in my router but they don't seem to work. I find it absurd that before I watch a movie trailer I have to see a different movie trailer - that is, watch an ad before I can watch the ad.
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I choose streaming to avoid the commercials. a 20-22 minutes show takes 30 minutes to watch on Network TV.
It's like when your significant other makes an extravagant purchase, and focuses on how much was saved due to the item being on sale...
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But honey, the helicopter was half-price today only! Although with Netflix you get tons more content than Network TV, the only snag is that it's not as current. Not having advertisements is just the frosting on the top.
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I choose streaming to avoid the commercials. a 20-22 minutes show takes 30 minutes to watch on Network TV.
If only there were some sort of ... let’s call it a Video Recorder for Digital content, or VRD for short ... that would let a person easily skip those commercials!
Hmm, maybe there’s a business idea lurking there somewhere.
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If you're streaming shit using a PC, I recommend installing a plugin that lets you watch shit at higher speeds. I typically watch at 1.5x or so. But you can watch at whatever speed you want. No, it doesn't ruin things. You quickly get used to it. Anything at 1x seems glacial to me now. Even at just 1.25x you save 20% of your time. There are plenty of plugins available, and they work with tons of sites.
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Netflix is still a great deal. Even without their original programming it still feels better than any other service. At $13 it's the same price as Amazon Prime monthly and provides more content (not counting the all the stuff Amazon that requires an additional payment or its premium channels). Feels better than Hulu too. And at that point, no other pay streaming service is worth bothering with.
And $13 a month is a huge bargain over the typical cable subscription cost. Anyone complaining about the rise in
Re: If only ... (Score:2)
Right because cable TV is totally free by using advertisers to pay for the shows.
Using advertisers just mean you get paid twice. And the people who watch the ahows have to pay twice. (Time and Mone y)
Re:If only ... (Score:5, Insightful)
#1: Advertising is absolute shit, I'd sooner not watch anything than go back to being brainwashed by ad networks
#2: Cable TV is broadcast on it's schedule and that's it. Miss a show/forget to DVR it? Too bad, so sad - better hope they decide to re-air it at a later date and time. Streaming let's you pick anything from the library to watch whenever and wherever you want it.
#3: Cable TV is f'ing expensive, and most people are paying for high speed internet service regardless of whether they want video entertainment to watch or not.
#4: Signing up for multiple streaming services is no different than deciding you want to pay for HBO, and Cinemax, and Showtime, and Starz, and etc. Except that most streaming services also offer huge libraries of other content, not just original content.
#5: You want ad supported streaming? Guess what, that exists! You can watch stuff on Hulu, Crunchyroll, Funimation, and I'll bet several other streaming services for free if you're willing to sit through some ads.
Re:If only ... (Score:4, Informative)
#2: Cable TV is broadcast on it's schedule and that's it. Miss a show/forget to DVR it? Too bad, so sad - better hope they decide to re-air it at a later date and time. Streaming let's you pick anything from the library to watch whenever and wherever you want it.
Streaming has been integrated with cable for a long time. First it was called "on-demand" and today that is available on virtually every cable service at almost all price tiers. However it's even been expanded such that a huge number of television networks (both broadcast and cable-only) have their own streaming services that are available at no extra cost to cable subscribers (and are often ONLY available to cable subscribers, not sold direct, which is why they don't get any press like these standalone services). That includes not just the existing on-demand stuff, but also location-agnostic streaming through their apps on mobile devices, and via boxes like Roku and FireTV and all that. NBCUniversal just announced [reuters.com] they are also launching a streaming service, and said it will also be no extra charge to cable subscribers (or you can pay $12/mo for it alone, which I think is an absurd price).
So no, by and large you are not beholden to a broadcast schedule.
To be honest, I think it's this sort of integration that may even save cable. Why pay 18 different streaming services a separate monthly fee, when you can pay one cable bill and still get access to most (admittedly not all) of those? And with the prices of the streaming services going the way they are, together they're going to end up costing as much as, if not more than, that "f'ing expensive" cable bill anyway.
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DirectTV streaming is shit. You are forced to watch "the embedded commercial", what feels like a 1000 times without the ability to skip. By this I mean each show will have one or two commercial segments. These identical commercials are forced, without fast-forward, to be viewed at least 5-10 times during the show. Can't finish the show, you are forced to watch it all over again, including "the commercial" 5-10 times to get to the spot you got interrupted at. I make a note to never use that sponsor for the rest of my life!
That's the way it is for "on demand" thing. Some shows may include short ads here and there, and some don't have any ads at all. At least this is from my experience with Fios.
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You forgot to say that Netflix doesn't try to force you to get useless channels like "shopping network" and "QVC" and justify it by saying "it's what the market wants."
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I second this, wholeheartedly.
I'm sick of seeing endless commercials and crap programming from cable. The ratio of program material to advertisements is approaching 50/50 on many stations. On top of having to watch all the commercials, we're still paying on average over $100 month for cable. It's double jeopardy.
I was slow to adopt streaming but I don't regret it paying for it; unfortunately, I still have cableTV as well for now, but I'm trying to convince my wife we don't need it any longer. She's con
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Nah, I like my content without advertising - I'll happily pay the extra. I have faith that Netflix will spend the additional revenue wisely. Hell though I obviously don't WANT a price increase they could easily double the price and it'd still be worth it to me.
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If only there were a way to pay for original programming by using advertising or something.
Make no mistake... advertising is coming. But what you don't realize is any price decrease when advertising is added will be temporary, and in no time, it will be back to $15 streaming with advertising.
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The Gillette ad was great, despite all the troglodytes who hated it and thought it was an attack on men.
Such a huge $2 price hike (Score:5, Insightful)
This summary does a very good job at making a $2 per month price increase appear very dramatic.
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This summary does a very good job at making a $2 per month price increase appear very dramatic.
That is like my cable plan's monthly increase... /s
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Uh Netflix got an offer for a subsidy to offset that increase a long time ago. I think they didnâ(TM)t apply because they figured their customers would just eat it. Oh well
The customers usually eat it one way or another... paying up front is often cheaper than having to pay later to cover funding with interest. Though not sure how the subsidies would be handled with this...
Re:Such a huge $2 price hike (Score:5, Interesting)
If your other goods or services (e.g. broadband) went up by 13-18%, I'm sure you'd complain too.
"It's only $2" is the refuge of a person with $2 to spare and expecting everyone else to ALWAYS have $2 to spare, on top of whatever they are paying for everything else. That's $2 a month, which is worse. You're now inching towards cable/satellite bills.
I stopped my Netflix. It was my only "TV" for about a year. But then I realised that all the "unique" content I didn't really care about, all the existing content I could just buy or watch for free on broadcast, and then they started getting finicky over how many devices, talking about adverts, etc.
I refuse to pay more than a token, throwaway payment for something that is just visual entertainment. I have Amazon Prime because it actually saves me money on delivery enough to justify itself, and then I get "free TV" on there too. I had Netflix because it was cheap and I could watch a lot of things. Once I'd watched those things, I didn't really care to pay for them continuously, and a lot of them came on Amazon Prime anyway.
Now my TV is actually a Raspberry Pi with a DVB adaptor. It costs me nothing, streams to my laptop, my phone, etc. and I can VPN in to watch it too (which bypasses a load of regional nonsense when I go on holiday). And I don't have a big box on the wall wanting to talk to everything.
It takes a lot to make me cut a service that I'm already signed up to. But I did it before Netflix raised prices in my country. They're going to struggle if they keep doing that.
In rise with inflation, or give me something more for the money.
What the market will bear (Score:5, Interesting)
If your other goods or services (e.g. broadband) went up by 13-18%, I'm sure you'd complain too.
Happens all the time and about things I care about a LOT more than TV. Health insurance routinely increases by similar percentage amounts and the actual dollar amounts are FAR higher.
"It's only $2" is the refuge of a person with $2 to spare and expecting everyone else to ALWAYS have $2 to spare, on top of whatever they are paying for everything else. That's $2 a month, which is worse. You're now inching towards cable/satellite bills.
This is the US, i.e. the richest country in the world. Most of us really do have $2 to spare, even most of the less fortunate among us. If the $2 is a problem then perhaps you should reconsider paying $11 (or $13) a month to an objectively frivolous TV streaming service.
Seriously, if it's a problem for a lot of their customers Netflix will have to deal with the loss. If their customers mostly don't care (as I suspect most won't) then it isn't really a problem. Expecting Netflix to just keep their prices static and let inflation eat away their profits endlessly is naive.
I refuse to pay more than a token, throwaway payment for something that is just visual entertainment.
That's reasonable. Many others are willing to pay more. Neither of you is wrong for doing so.
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This is the US, i.e. the richest country in the world.
Not according to any relevant metric [fortune.com]. In other news: American Football is not the most watched sport in the world and the US did not single-handedly beat the Nazi's in WWII.
Richest country = USA (Score:2)
Not according to any relevant metric.
You mean except for GDP [wikipedia.org] and total wealth [wikipedia.org]? Yes the US has more money as of 2019 than any other single country and has for quite some time. China will probably overtake the US in a few years but that is then and this is now.
In other news: American Football is not the most watched sport in the world and the US did not single-handedly beat the Nazi's in WWII.
Got any other fake and irrelevant strawmen you'd like to eviscerate?
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I think Netflix is going to need per capita money so the per capita figures may be more relevant. They probably won't be on board with sharing the account with all of the country. I guess you thought the 2 dollar rate increase could be split with all users? Sadly it's on an individual basis :-(
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and the US did not single-handedly beat the Nazi's in WWII.
No that was Captain America, though he is American.
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Netflix is getting more "expensive" dramatically slower than inflation. Increasing at the rate of inflation is not an increase. Netflix is objectively getting cheaper every year, even if the number increases. My cable bill was getting more expensive about 2x inflation.
To be fair, Netflix has increased from $7.99 in 2011 to $12.99 today, so that is far faster than inflation. If Netflix streaming was increasing with inflation it would cost about $9.25 today.
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The cheapest plan is only going up $1. The people who care about a dollar or two already have this plan. The people who don't care can pay another $2.
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In rise with inflation, or give me something more for the money.
Netflix is giving users far more for their money than they have in the past from a pure cost perspective, since they are spending far more on new content now than they ever had on licensing agreements.
But just because they are spending more money doesn't mean they are spending it on things you care about. Netflix is bound to get more expensive in the near future because of their move into original content. All of the major streaming competitors, like Amazon and Hulu, are doing the same. The big players in t
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"If your other goods or services (e.g. broadband) went up by 13-18%, I'm sure you'd complain too."
Not actually.
This is the sort of smoke and mirrors of statistics, isn't it?
I mean, when someone waves around a 15-18% increase, that sounds like a lot...but I don't spend RELATIVE (%) dollars, I spend actual dollars. So what impacts me isn't the relative increase, it's the absolute increase and no, $2/month really isn't much. I mean, people blow 3x on an impulse purchase of a Grande Orange Mocha Latte Frappuc
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$2 increase and they are cutting most of the best shows. Daredevil, Luke Cage and Iron Fist already cancelled, The Punisher and Jessica Jones probably will be too after their next seasons air.
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Comment removed (Score:4, Interesting)
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Sure, it's Disney's fault, but Netflix have to accept that the value of their service is diminished by the loss of several of their biggest and best titles. At least it is for me.
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I'd be fine with that, but I'm not really seeing this content. House of Cards ended on a bit of a damp squib, their original movies are extremely hit and miss and none have really stood out so far.
Is there anything coming down the pipeline I'm missing? I guess they will get all the new Star Trek stuff outside the US... American Vandal and Castlevania are okay, as is that Marie Kondo thing, but I'm struggling to think of stuff that I'm looking forward to this year apart from The Punish and Jessica Jones, whi
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Interesting interpretation of the term "best."
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This summary does a very good job at making a $2 per month price increase appear very dramatic.
No. But 18% is.
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This summary does a very good job at making a $2 per month price increase appear very dramatic.
Darn. Here I thought I'd just Chill going forward...
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This summary does a very good job at making a $2 per month price increase appear very dramatic.
I see you've taken the boiled frog approach. At what point does the continuous slow increase in price to justify the constant production of content no one wants while at the same time gutting the movie library available start being dramatic to you? Are you happy for a $2 price increase for every 200 movies removed from the library?
Netflix seems to forget the reason it exists is because people were fed up from every fucking cable company locking down and producing its own content.
It is (Score:2)
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This summary does a very good job at making a $2 per month price increase appear very dramatic.
Well if you think that's dramatic, wait until you see all the crying, whaling, and gnashing of teeth some subscribers will be spewing onto social networks over it!
Bad (Score:3)
That price point seems to work for them because they are not only overtaking cable but they have money to create original content too.
How long before Netflix becomes just as bad as cable?
Re:Bad (Score:4, Insightful)
How long before Netflix becomes just as bad as cable?
Seems like a bit of a slippery slope fallacy. If, like me, you don't care that much about sports then Netflix is a very good option and still orders of magnitude more reasonably priced than cable. That and I don't have to deal with ads.
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It's like that old saying. You get what you pay for.
I hate cable and will be the first to stomp on its grave. But at this point Netflix's content is not worth the price. Netflix offerings are garbage:
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Pretty quick...
At the time I started with them, they had crazy amounts of third party content and very cheap prices. I think largely because the content owners weren't taking streaming seriously.
Now as their third party catalog evaporates and their prices increase and their home-grown content is mostly not along the lines of what I'm looking for, it's rapidly losing it's appeal to me...
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Actually, Netflix is running up a big debt creating new content. Their Balance sheet from 2014 and 2017 show they tripled debt from $5 billion to 15 billion. In the near future, something is going to have to change if interest rates go up and they start to lose significant profits to interest charges.
Some options might include:
Creating less new content, and hope people stay to watch old shows they've missed.
Convince the people who make their shows to do so for less money. (this may work if they hire less kn
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Must be Apple's fault (Score:2)
Netflix plan since day one (Score:3)
Start with low prices, kill the competition, and then raise prices higher than the cable/satellite providers once they succeed. Typical drug dealer behavior.
The only thing that amazes me is how many people didn't see this coming.
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Cable providers have been raising prices by 20-25% every year. They are the ones coming in at $45/month for the first year and then go to $150, then to $200 for a standard cable package.
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my cable bill surely hasn't increased by anywhere close to that amount over the years. It's more like 2-8% (more then inflation, though)
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You're lucky. I had a local TWC subsidiary which charged me $45 for years. Then TWC took over control of all it's local subsidiaries and they started with $15/month for the modem, then they didn't upgrade from the paltry 10Mbps to 15Mbps and then Charter merged with TWC and the 15Mbps was never going to become 100Mbps unless you accepted their new pricing structure which has increased year over year.
During the 10-15Mbps years they were also pinching Netflix and YouTube (after "net neutrality" legalized pref
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People see this coming, but they don't care. Frankly, they shouldn't yet.
Yes they should. They should be glad when Netflix doesn't get show XYZ instead of ranting. It means someone else can offer it and there can be more competition.
One must be a fool to think that Netflix can offer all shows and movies out there for $10-15/month
What about internationally? (Score:2)
No mention of this is international, or just US. Prices listed are in USD, it seems.
Any idea if this will affect Netflix in Europe? Well, not if, but when?
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Looks like this will happen in Canada shortly too: https://www.narcity.com/news/n... [narcity.com]
The last increase in Ireland was in 2017, so I can only guess this will be a worldwide increase in the next few weeks.
Less Content, Higher Prices (Score:2)
Who ever said competition was a good thing?
Greedy fucks.
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the benefits of competition conflict with the benefits of the network effect. It doesn't help that the tendency for a given piece of entertainment to be on one or a limited number of services means that the services are not so much competing for the market as dividing it up.
Stream non-original content? (Score:2)
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Didn't we see numbers a few years back, about how financing their own movies and shows was actually cheaper than paying up Hollywood to rent their movies and shows?
There's also the bonus that if Netflix plays their cards right with the lawyers and the financing, it means they will never have to remove their own shows from their own librairies.
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...Didn't we see numbers a few years back...
I don't know, did we?
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I don't know, that's why I'm asking!!!1
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Or to put it another way, Netflix started as an alternative to video rental. Then they reinvented themselves and have had some success to the point that others now are trying to copy. So in a world where everyone wants to be a creator
You can break even (and get even) (Score:3)
By canceling your Netflix membership for 3 months a year.
Netflix...done (Score:2)
I admit, I prefer cable (Score:4, Interesting)
After a couple months we tried a compromise by getting Directtv Now. The service its self isn't ready for prime time. The interface is buggy and on an Apple TV navigating the guide was an exercise in infinite scrolling. And in our market they didn't have local channels available so we still had to use an antenna.
In the end we went back to a low tier cable subscription with a few streaming services to supplement. I paid up front for a Tivo with a lifetime subscription, rent a cable card for $5 a month, and have two tivo minis for other rooms in the house.
At the end of the day cable "just works". I don't want to come home after a long day and putz around hopping from one service to another looking for something to watch. Yes, it's somewhat brainless.
The thing about streaming services is that they are going to fracture more and more as time goes on. Various content holders are figuring out that they might as well set up their own distribution channels and pay themselves to show their IP. They tried this vertical integration back in the early 20th century by trying to run theaters too. Those efforts were slapped down as anti-trust violations. Today though, it would seem anything goes.
We are in the process of trading all you can eat cable service for a series of smaller walled gardens.
This should be a concern to cable cutters (Score:2)
The industry is starting to catch up.... before it was just Cable video that was expensive,
now streaming video is starting to get expensive.
This is exactly how it happens.... small accretive price increases to suit the greedy publishers.
I remember.... it doesn't seem too long ago when Cable TV was $15 a month for 50 channels Basic + Expanded.
Boil the frog alive.... "Boil the frog alive" [wikipedia.org].
I don't understand the subject (Score:2)
just cancelled (Score:2)
I just cancelled my subscription. that price hike was nothing but greed. they just stopped in-app purchases that saved them around 250 million dollars a year, they are losing disney shows, and too many show I am interested in is in another language. Just not worth it anymore. Fortunately some shows are on amazon prime and other streaming services.
I decided to cancel now instead of waiting the three months current subscribers are getting at the old rate because I would either forget or decide to keep it
Just canceled, but not just the price increase (Score:3)
I just canceled my account. The price increase is what triggered the thought to take the action. But price wasn't my major motivation. Rather, Netflix keeps dumping good content. The last several times I went to search for a specific movie or show, it wasn't there. Law and Order, NCIS LA, Murdoch Mysteries, Downton Abbey, to name a few.
As for Netflix Originals, the only one that really got our attention was The Crown, but do we want to keep paying all year just for that March release? We've been watching Netflix less and less. Finally, we couldn't justify the cost and said good-bye.
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Travelers and Salvation are also good, although they're not Netflix exclusives AFAIK.
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What's sad is this is probably how a lot of cable/satellite execs actually think.
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You won't believe what headline writers do! (Score:2)
This one simple trick will stop headline writers in their tracks!
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Agreed. Bullshit clickbait tactics like that just reinforce the meme that the editors are idiots.
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Don't worry, soon we'll have a new internet tax, I mean levy, to make up for the fact that Netflix doesn't pay its artists enough. Use over 15GBs a month, well you must be streaming and those artists need their paycheck increased.
Don't like it, well here https://act.openmedia.org/noin... [openmedia.org]