Netflix Faces 'Unexpected' Loss of Subscribers Due to Monthly Price Increase

[profmjh]

Amazon Prime is basically free. I'd buy it anyway just for the delivery. Plus you only pay once a year. It's a little painful, but then it's forgotten and you get a whole year of movies and tv shows. There's some decent stuff on there.

I tried giving up Sky (i.e. cable) but I actually missed scheduled programming. It's easier to be given a selection of things to watch than to have to hunt around to find something to watch. I added Sky Cinema because of the new releases.

Given that set up, I don't really know where Netflix fits in for me. Once a year for House of Cards, I guess. UK Netflix is notoriously weak compared with US Netflix. And they kept putting the price up. First £5.99, then £6.99 now £7.49. Psychologically £7.49 is waaay more than £5.99.

I don't want to have to check multiple services to find something to watch. With Sky it's all there: lots of HD channels, it's not hard to find something. And it's easy to record things ahead of time to have plenty waiting for you. I'll only use Amazon if I can't find the movie on Sky or if there's a specific series I know I want to watch, e.g. Mr Robot or High Castle.

As for Apple TV, it's been in a drawer for the last three months. I should really sell it, I guess.

 

[milo]

Stan.

Looks like Australia only. If that's it, I guess that makes his point.

 

[inajeep]

I was notified of the increase and thought of how much my family uses it and continued. Two days later I attempt to continue a series I'm watching and hit my limit of access. Four members of my family finally hit the 2 person limit so I shelled out another $2/month for 4 concurrent + Ultra HD. Not even sure what Ultra HD is but I do know that $12/month plus my FIOS bill is enough for me. We have Amazon Prime but don't use the video streaming much and Hulu too. I think I reached my saturation point. Hulu is going first because of the content and those f'in commericals I am not paying to watch. Prime at least has the shipping part going for it.

 

[Gasu E.]

'Unexpected', really?

When you increase the price without adding more value, what did you think was going to happen?
Also, the tiered pricing for quality is a turn off for a lot of people.

Netflix has had a surge of original programming over the past couple of years, so in fact they did add value. This has both gotten a lot of media coverage and been heavily promoted by NetFlix. The new shows are comparable to the most of the best competing services in quality. HBO still has the very best original programming, but in my opinion Netflix is firmly at #2.

 

[bobr1952]

I'd dump my regular cable services before I dumped Netflix. I for one couldn't care less that they raised their price--to what everyone else has been paying--which is only a $2 increase. I suppose if you don't actually use Netflix, the increase would give reason to ponder the increase. But for me, it is an incredible value especially when you factor in their original programming.

 

[69Mustang]

Its not milking anything. 4K content requires even more server storage than typical HD content. Then you have ISPs billing both us and them for bandwidth usage. 4K requires a ton more bandwidth to deliver a steady stream. Then theres liscensing they need to pay for all their content and money needed to actually FUND original content. There are plenty of reasons why it costs more, even reasons that we may never know. If they really wanted to milk us prices could be FAR worse. Frankly for what they provide the price is still extremely low. Even so, god forbid a company actually PROFITS. Original programming and content licensing isn't free and the fees they charge is what is necessary to remain ad free.

Profit?!? Now you know there's a certain contingent of this forum that thinks PROFIT should only be made by Apple. Any other company attempting to make a profit is automatically greedy. Funding original programming, content licensing, and other overhead like bandwith should equal out to a net/net.

Obviously, I'm joking. It still amazes me that people get up in arms over $2... spread over a month. If they saved that $2 a month for 10 years, they could almost buy an Apple Watch.

 

[agsystems]

they'll all come back. What else are you going to get for $9.99 a month that even comes close to Netflix?

Exactly..where else you can get this much entertainment for like 35 cents a day.
However, I can see why people would be leaving the service - the selection of popular movies have been going down hill for many years now.

 

[milo]

Hulu with no ads is $12 and HBO GO is $15.

And this fall Hulu loses all CW content. Netflix is getting it all although only at the end of the season instead of next day. I wouldn't be surprised if that makes Hulu lose more viewers than Netflix is losing from this price increase.

Usenet subscription or hulu

Hulu is more expensive (without ads, and even then some shows still have ads) and a worse selection than Netflix. And if you have to go to piracy to beat Netflix, that just shows how competitive they actually are.

 

[Gasu E.]

Who outside Netflix didn't see this coming?

The competition is growing and haven't been raising their rates each year as Netflix has.

While Netflix has put a huge push behind original shows, they've ignored the other side, the people that want shows and movies found on network TV which they'd originally gotten the service to watch. This area has been pushed away while Netflix seems to focus only on the few original shows they're trying to shove down everyone's throats.

In quantity, Netflix has as much original programming as HBO, if not more. I get both, and they are my top two services. HBO is still the best in quality, but IMO Netflix is #2. In addition to MANY (not a few) original programs, Netflix has upped its movie game as well. It's currently running "Spotlight" and "The Big Short", both major award winning movies less than a year old.

 

[milo]

Yep, there are lots of alternatives to Netflix streaming now.

But which beat it on selection and price? Certainly not Amazon or Hulu.

 

[pokerplayer73]

I was on 7.99 price tier and will be bumped to 9.99 end of July. I would have kept Netflix even if they didn't grandfather me for last 2 years. They have added a lot of value in terms of shows. I have subscription for HBO GO, Showtime as well, and both are more expensive than Netflix. But, I tend to watch more Netflix than either of those 2. I cut the cord last year and it was the best decision I made.

 

[CFreymarc]

One less burger a month if you keep the same budget. Who cares?

 

[Zorn]

While Netflix has put a huge push behind original shows, they've ignored the other side, the people that want shows and movies found on network TV which they'd originally gotten the service to watch. This area has been pushed away while Netflix seems to focus only on the few original shows they're trying to shove down everyone's throats.

Completely agree with you. I don't subscribe to get the latest season of some prison comedy, I want a decent catalog of shows and movies that are recognizable. They have completely been shirking this part of the service to focus on being content creators.

 

[GIZBUG]

LOL. You are in nobody's target market. Why are you even in this discussion?

Thats were people will go. You don't like the post, oh well.
I have a netflix subscription, but know people who just canceled, and that's their market now. Didn't know words like usenet or torrents offended you. Reality is, some people go there.

 

[milo]

Completely agree with you. I don't subscribe to get the latest season of some prison comedy, I want a decent catalog of shows and movies that are recognizable. They have completely been shirking this part of the service to focus on being content creators.

The movies have been going downhill for a while but they've consistently had a pretty fantastic selection of TV shows. Way more than I'd ever have time to watch.

 

[dickseng]

I escaped the price rise, easily. I do not watch TV. At all!

 

[thisisnotmyname]

I sincerely doubt they lost anywhere near 25% of their grandfathered customers as they implemented this 25% price hike. That doesn't even account for lower bandwidth consumption across fewer users and (depending on the license model they have with content producers) fewer license fees paid for few subscribers. If I were Reed I wouldn't be sweating this and it seems like the market reacted more to the missed targets on adds than on the loss of grandfathered accounts.

 

[pokerplayer73]

I think it triggered ppl to reconsider whether they even need the service all together even for the old $7.99/m price. When people are on monthly subscriptions they usually just keep it running without a thought, but when they get notice of a price increase...well, that gets them thinking.

Exactly my thoughts. Some people rarely watch, but don't mind paying for maintaining the service until a price increase kicks in. Even a minimal amount increase forces them into action to unsubscribe. I was in the same boat with my cable company(Brighthouse). Didn't watch much and when they increased the price by 20% or so, I just quit. Haven't regretted my decision. Timing was great since Tivo was selling their OTA DVR with lifetime service for 250 or so. Has been a lifesaver.

 

[Gasu E.]

Thats were people will go. You don't like the post, oh well.
I have a netflix subscription, but know people who just canceled, and that's their market now. Didn't know words like usenet or torrents offended you. Reality is, some people go there.

Easy. It's not offensive at all, it's just funny. I really did laugh out loud. You were not trying to be comic?

 

[duffman9000]

If they didn't expect this then they are stupid.

 

[quietstormSD]

I think it's all those grandfathered subscribers getting an email that they are paying for a service they probably don't use

 

[ThunderSkunk]

I just declined and was then presented with the 7.99 SD option.
I don't think I've ever successfully streamed HD anyway.

 

[bushido]

I cancelled it after they inteoduced the VPN detection BS

 

[bniu]

Did Netflix think their elasticity was positive? Generally, elasticities are negative, raise prices, lose some demand. If you're inelastic, then you lose less, if you're elastic, you lose more. Did no one there take an economics course?

 

[C DM]

I was considering stopping Netflix last week. Don't use the service that often and didn't feel like spending $7.99 anymore (didn't even realize it increased)... Then my wife and I found this show "Limitless" Friday night. Glad I stayed and even happier Netflix is making a second season out of it.

Has that actually been picked up for a new season by Netflix?